The digital wallet LinkAja, based in Indonesia, made an announcement about its corporate action on Wednesday. Mitsui & Co., Ltd. (Mitsui) provided a strategic investment.
The investment, which will be LinkAja’s first from a worldwide corporation, is intended to bolster the company’s ecosystem and business plans, particularly cooperation with its State-Owned Enterprises (SoE) shareholders, LinkAja stated in a statement.
The statement claims that Mitsui’s strategic approach to growing its digital finance business and accelerating strategic collaboration between LinkAja’s ecosystem—primarily in the areas of retail and Information & Communication Technology (ICT)—and Mitsui ecosystem is to invest in LinkAja. This will help to accelerate economic and financial inclusion in Indonesia.
The strategic investment made by international investor Mitsui in LinkAja is warmly welcomed by Vice Minister of the SoE Kartika Wirjoatmodjo (Tiko).
He claimed that by making this commitment, LinkAja’s business model has the potential to attract global partners due to its market value.
As for Mitsui, it began a long-term commitment to the Indonesian market in 1901 when the former Mitsui opened an office in Surabaya, and since then, it has grown its business alongside Indonesia, according to Shinichi Kikuchihara, President and Director of PT Mitsui Indonesia.
“In Indonesia, Mitsui operates in strategic sectors such as infrastructure and energy, mobility, steel, chemical food and retail and information and communication technology (ICT),
“Some of Mitsui’s investees in Indonesia include Bussan Auto Finance (Motorcycle retail finance) and convertible bond subscription in CT Corp,” he said.
According to him, as society continues to go digital, so does the importance of the digital economy, particularly digital finance in Indonesia.
“As a company with strong business fundamentals and shareholder ecosystem, we believe that Mitsui and LinkAja together can contribute to the development of Indonesian digital finance industry,” he added.
As of the end of 2023, LinkAja had successfully achieved significant improvements in business performance through the pivoting of its business model and cost-efficiency strategies, with positive earnings before interest, taxes, depreciation, and amortization (EBITDA) for two consecutive quarters.
LinkAja’s 2024 strategy remains centered around collaborating with state-owned businesses (BUMN). LinkAja and Mitsui will have the chance to combine their diverse capabilities and distinct competitive advantages to support Indonesia’s digital economy thanks to Mitsui’s strategic investment.
