The acquisition will boost BJJ’s digital transformation, where WeLab will leverage its know-how and technology in digital banking, while Astra its business ecosystem, experience, and distribution network
Hong Kong-based financial technology company WeLab, together with its partner Astra, has closed the acquisition of Indonesia-based commercial bank Bank Jasa Jakarta (BJJ).
Welab Sky, a consortium led by WeLab, and Astra’s subsidiary PT Sedaya Multi Investama (Astra Financial) participated in the acquisition.
The companies secured all the regulatory approvals required for the transaction from Indonesia’s financial services regulator ‘Financial Services Authority (OJK)’.
Welab Sky is supported by existing and new investors, including Allianz X, Boyu Capital, Horizons Ventures, SCBX Group and TFB (Taipei Fubon Bank) Capital.
It is the second partnership for WeLab and Astra in Indonesia after the duo established a fintech lending joint venture, dubbed PT Astra WeLab Digital Arta (AWDA), in 2018.
The acquisition will boost BJJ’s digital transformation and help the bank become an advanced digital bank, building on synergies between Astra and WeLab.
WeLab will leverage its know-how and technology in digital banking, while Astra its strong business ecosystem and experience, along with its distribution network.
WeLab founder and group CEO Simon Loong said: “Expanding WeLab’s digital banking presence across Asia, first in Hong Kong and now in Indonesia, has been one of our key strategic moves.
“This partnership with Astra reinforces WeLab’s strategic focus on enhancing cross-country and business synergies with partners to increase scale and reach, in order to further strengthen the breadth and depth of the existing pan-Asian fintech platform.
“We’re excited that our long-term partner, Astra will be collaborating with us to deliver the best tech-driven banking services through BJJ in Indonesia. We look forward to bolstering the customer trust level with the collaboration with Astra.”
In December last year, WeLab signed a share purchase and subscription agreement with the BJJ shareholders to obtain 24% equity interest in BJJ.
With the current acquisition, WeLab and Astra will own 49.56% of BJJ shares each, and become the majority shareholders and joint controllers of the bank.
The transaction marks Southeast Asia’s largest digital bank acquisition this year, and will contribute to digitising Indonesia’s banking industry, said Welab.
Astra president director Djony Bunarto Tjondro said: “Investment in BJJ is in line with Astra aspirations in financial services pillars to become leading retail financial providers in Indonesia and support the growth of financial services industry as well as the economy of Indonesia.”