Indonesia’s LinkAja to expand payment ecosystem with Mitsui backing

(Second from left) LinkAja CEO Yogi Rizkian Bahar / Photo credit: LinkAja

Global trading and investment firm Mitsui & Co. has poured an undisclosed amount of capital into LinkAja, just a few months after the Indonesian digital payment system provider hit EBITDA profitability.

With this deal, which marks the first international investment into LinkAja, the company plans to expand its ecosystem and business – which would involve partnerships with its state-owned enterprise (SOE) shareholders.

Initially a service under Indonesian telco Telkomsel, LinkAja was then spun out in 2019 as a joint venture between 10 SOEs. It offers digital wallet services and payment services, as well as bulk payment services for enterprise clients – which can be used for payroll disbursement, among others.

Aside from Telkomsel, which holds a majority stake, its investors include energy giant Pertamina and state-owned banks BNI, BRI and Bank Mandiri.

Led by CEO Yogi Rizkian Bahar, LinkAja revamped its business approach and cut costs, including an 80% reduction in marketing expenses. This helped lead the firm to positive EBITDA in late 2023.

The company also sharpened its focus on the SOE ecosystem – a strategy it aims to continue in 2024, LinkAja said in a statement. It also targets a positive net income by this year, the company previously said.

For Mitsui, the investment would support its digital finance business development – especially in areas like ICT and retail.

“As society continues to digitalize, we are also growing our focus on the value of the digital economy, including digital finance in Indonesia,” said Shinichi Kikuchihara, Mitsui Indonesia’s president director.

See also: LinkAja reaches profitability despite fall in users as new strategies take off