🧠 Food for thought

Implications, context, and why it matters.

Jago grows through its link with GoTo

• Gojek’s December 2020 investment, made through its payments and financial services arm, gave it about a 22% stake in Bank Jago as part of a partnership. Gojek is now part of GoTo, Indonesia’s largest digital ecosystem group 1.
• The deal aimed to place Bank Jago’s services inside Gojek, targeting Indonesia’s unbanked population of 52% of adults, or about 95 million people 1.
• That tie-up produced GoPay Tabungan by Jago in 2023, a bank account plus e-money service that works through the GoPay or Gojek apps, according to GoTo 2. Users can upgrade in about two minutes with no minimum balance, GoTo says 2.
• GoTo-linked distribution can bring in deposits, while Bank Jago’s balance sheet can fund credit such as buy-now, pay-later installments for Tokopedia purchases, though GoTo says fintech results can swing 3.

Jago’s valuation leaves little room for slower growth

• Bank Jago trades far above the wider Indonesian banking sector, with a price-to-earnings (P/E) ratio near 68x versus an industry average of 16.7x 4.
• That price leaves the bank under pressure to keep growing, and some peer comparison models put the stock above their implied values 5.
• A forward P/E of 40.05 plus a PEG ratio of 0.42, or price/earnings-to-growth, compares valuation with expected earnings growth and implies investors expect profits to rise fast 6.
• The bank-as-a-feature model places banking inside another platform, tying Bank Jago to GoTo’s strength and to any slowdown in ride-hailing or ecommerce 3.