Jakarta. The recent stock market debut of Indonesian tech giant GoTo gives new strength for startups in the country as well as a testament to Indonesia’s growing digital economy ecosystem, according to wealthtech app Pluang.
“During this era of digital disruption and the beginning of the shift to web 3.0, not only it is easier for us to access the various aspects of life, but we also see a bright future ahead for startups, especially their existence in the stock market,” Pluang co-founder Claudia Kolonas said in a statement.
GoTo employees and driver-partners also get the chance to have a share ownership. Pluang commended GoTo for allocating its shares to its partners, including the drivers. This will pave the way for financial inclusion and can set an example for other startups with a similar plan in the stock market.
“GoTo’s decision to make an IPO in Indonesia has caused a substantial impact on retail investor growth and sent a positive signal to Indonesia’s stock market prospects,” Claudia said.
She added, “Indonesia is now getting closer to financial democracy. Everyone has easier access to investment assets, including the workers as well as micro, small and medium enterprises [MSMEs] who are GoTo merchant partners.”
Data shows that the investors in the Indonesian stock market had jumped 92.7 percent year-on-year from 3.88 million investors in late 2020 to 7.48 million by end 2021. About 88 percent of the new retail investors come from the millennial-Gen Z age group, and are younger than 40.
Pluang attributes this growth to the digital ecosystem that is thriving thanks to the nonstop collaboration between Indonesia’s young generation. GoTo’s IPO is also forecast to make the stock market more attractive and give a major boost to retail investors.
GoTo is one of Pluang’s partners for micro investment product distribution. Since March 2019, GoPay has become one of the payment methods in Pluang. Gojek’s venture capital GoVenture is also among Pluang’s investors. The development of the local funding ecosystem helps propel the digital economy, while also boosting the competitiveness of local startups such as Pluang.
GoTo projected the market capitalization at admission to be between Rp 376.6 trillion (about $26.2 billion) and Rp 413.7 trillion ($28.8 billion) – among the highest at the Indonesian Stock Exchange after ADRO, BUKA, and MTEL. GoTo has set a price range of Rp 316 to Rp 346 per share for its IPO.