As we blogged about a few weeks ago, some major shifts are happening in Indonesia’s payment landscape.

The following picture taken by our colleague in Jakarta illustrates the heated competition:

It is clear that GoPay is part of Go-Jek, LinkAja is owned by state-owned enterprises, while Dana has Emtek and Ant Financial behind it.

We also know that OVO was started by Lippo, and count Grab and Tokopedia as investors. Who are the other shareholders?  

To answer that question, we need to first understand: who is OVO?

There are three major entities:

PT Visionet Internasional

This company owns the e-money licence issued by Bank Indonesia. Employees of OVO would list PT Visionet Internasional as their employer.

It also is the developer and publisher of OVO app:

PT Visionet Internasional is almost wholly owned by another entity, PT Bumi Cakrawala Perkasa  (BCP).

PT OVO Finance Indonesia

This company’s main activities include a multitude of financing services. Its two shareholders are Tokyo Century Corporation (60%) and PT Ciptadana Capital (40%) which is part of Lippo group.

PT Bumi Cakrawala Perkasa  (BCP)

BCP owns PT Visionet Internasional, and its shareholding structure as of May 2019 is as follows:

1 – Grab (GP Network Asia Pte Ltd) – about 41%

Grab has had a long working relationship with Lippo group, counting the latter as an early investor. In 2016, both parties established strategic partnerships, in areas including payment.  

Grab has been using OVO since Bank Indonesia put a de-facto moratorium on new e-money licences. Last year, Grab invested in OVO, and started deeper integration. The current CEO of OVO (PT Visionet Internasional) used to head Grab’s Financial services.

2 – Tokopedia (PT Digital Investino Jaya) – about 38%

Similar to Grab, Tokopedia has been working with OVO as it did not possess a licence itself. Last October, all individual accounts of TokoCash were migrated to OVO. Earlier this year, Tokopedia announced an investment into OVO.

3 – Lippo Group (PT Inti Anugrah Pratama) – about 10%
4 – Tokyo Century Corporation – about 8%

Tokyo Century was a very early investor into OVO, putting US$116 million in 2017 when OVO was still at its infancy.

Tokyo Century is also a minor shareholder of Grab.

5- Lippo Group (PT Prima Ecommerce Global) – about 3%


Strong market potential

With Grab and Tokopedia entering, Lippo and Tokyo Century’s ownership has been significantly diluted. Nonetheless, with the support of strong use cases from all parties, OVO has significant advantages over its competitors, notably GoPay.

Thanks for reading The Low Down (TLD), the blog by the team at Momentum Works. Got a different perspective or have a burning opinion to share? Let us know at [email protected].