OVO executive Vira Shanty introduces the company's vending machine for digital payment in Jakarta in October. (B1 Photo/Emral Firdiansyah)

OVO Seeks to Resume Partnership With Alfamart

BY :INVESTOR DAILY

NOVEMBER 13, 2019

Jakarta. Leading digital payment platform OVO maintains hope that it can resume its partnership with grocery store network Alfamart, who ceased its deposit services for OVO users on Tuesday.

OVO's public relations executive Shinta Setyaningsih said the company had repeatedly requested Alfamart to extend the partnership, but the proposal was turned down.

"We've met several times with the Alfamart management and also sent letters requesting an extension [to the partnership] so users can continue topping up their OVO balances at Alfamart stores," Shinta was quoted by Investor Daily as saying on Tuesday. 

She said OVO intended to expand its services to support the government's digital payment literacy program.

Alfamart's decision to halt the service for OVO's users has prompted the Business Competition Supervisory Commission (KPPU) to launch a probe into an alleged monopoly and unfair business practices by OVO's rival GoPay.

Alfamart's corporate communications general manager Nur Rachman has denied the monopoly allegation. He said the partnership agreement with OVO expired on Nov. 12 and his company had delivered OVO a prior notice of its termination.

"This is a very common thing in business. Until today, Alfamart still partners with other digital payment platforms aside from GoPay. They include LinkAja, BCA Flazz and Mandiri e-money. Users can make their deposit at 13,000 Alfamart stores across Indonesia," Nur Rachman said. 

"We value business ethics highly and always support fair business competition," he said.

Meanwhile, GoPay spokeswoman Winny Triswandhani said her company always abides by government regulations and seeks to promote a healthy business climate in an effort to reach the common goal of a "cashless society" in Indonesia. 

"We share the same commitment to accelerate expansion of non-cash payment in Indonesia. We want to grow together with our business partners," she said.

The Jakarta Globe and OVO are both affiliated with the Lippo Group.

 

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