The Presence Of GoTo Is A Breath Of Fresh Air For Jago Bank Investors, A Company Owned By The Conglomerates Jerry Ng And Patrick Walujo

Illustrations. (Photo: Doc. Gojek)

JAKARTA - PT Bank Jago Tbk (ARTO) is said to be getting profits after the merger between PT Aplikasi Karya Anak Bangsa (Gojek) and PT Tokopedia. The two super apps officially merged to form an entity called GoTo.

As for the formation of GoTo, it is predicted to form a valuation of more than USD 40 billion. The birth of this super app will certainly provide fresh air for Bank Jago.

PT Dompet Karya Anak Bangsa, a financial service developer under the Gopay brand, narrowed 21.40 percent of ARTO's shares. The news of Gojek's entry into the ARTO shareholder structure is one of the hot topics in 2020.

Since June 2020, there have been several jumbo stock transactions in the negotiation market involving these banking shares. Gojek officially announced the acquisition of 22 percent of Bank Jago's shares on December 18, 2020.

At that time, the total transaction value of ARTO shares in the negotiation market reached IDR 2.25 trillion. Since holding an initial public offering (IPO) in January 2016, Bank Artos' shares have never exceeded the 200 level.

However, on August 21, 2020, the bank's shares with the capital of less than IDR 1 trillion jumped to IDR 830 in just 2 weeks. Rumors were developing at that time, senior banker Jerry Ng and Northstar Co-founder and Managing Partner, Patrick S. Walujo, would collaborate to acquire shares in Bank Artos.

Both are committed to developing Bank Artos as a bank that serves the middle and lower segments in the mass market pyramid. Through acquisitions and rights issues, Jerry Ng and Patrick Walujo control shares of Bank Jago, respectively through PT Metamorfosis Ekosistem Indonesia (MEI) at 37.65 percent and through Wealth Track Technology Limited at 13.35 percent.

ARTO's share ownership has also brought Jerry Ng into the Forbes list of 50 richest Indonesians. Former President Director of PT Bank BTPN Tbk. it has a wealth of up to USD 600 million or ranks 44th.

Binaartha Sekuritas analyst Muhammad Nafan Aji Gusta Utama said that Bank Jago will also receive appreciation from investors with this corporate action. With this megamerger, Bank Jago will later have a larger customer base to develop many products, both savings and financing.

"This is a corporate action effort from Decacorn, of course, it will affect all businesses related to Bank Jago which are already included in the Gojek Group", Nafan said.

Nevertheless, Nafan still underlined that this integration effort would not be easy. There are many things that need to be resolved first before a strong collaboration can occur. Moreover, according to him, not all mergers result in stronger businesses.

Photo: Doc. Jago Bank

He said that the potential increase in ARTO's share price is getting bigger with this corporate action. The issuer's share price has the potential to move in the range of IDR 8.800 to IDR 11.900.

Meanwhile, CSA Research Institute Senior Analyst Reza Priyambada said that ARTO stock price predictions are indeed very diverse. Many securities publish analyzes that project a phenomenal increase in price.

Nevertheless, Reza said that Bank Jago still needs to prove its real performance this year before investors continue to appreciate it even more.

"Indeed, many analyzes estimate that it could reach more than IDR 20.000. However, we see that Bank Jago still needs to prove its real performance first", he said.