Profile of Dana Indonesia Under Sinarmas Group (DSSA) Control as It Prepares for IPO
PT Espay Debit Indonesia Koe (DANA), or Dana Indonesia, now under the control of Sinar Mas Group’s PT Dian Swastatika Sentosa Tbk (DSSA), is opening the door to a major corporate action in the form of an initial public offering (IPO).
DANA’s path to the capital market has not yet been officially announced, but the digital wallet company’s corporate policy direction is becoming increasingly apparent. DANA Communications Director Olavina Harahap acknowledged that the plan is indeed part of the company’s roadmap. However, she said the move would not be executed in the near term.
“An IPO is currently still part of our long-term strategy and will be executed at the right time, naturally adjusting to market and company conditions,” Olavina said when contacted by Katadata, as quoted on Monday (23/2).
She explained that the company will focus on strengthening its business foundations, particularly in terms of user experience, system security, and service quality. The company wants users to be able to maximise its services so as to drive economic growth and support welfare.
Nevertheless, DANA’s ownership has now changed and is no longer under the control of PT Elang Mahkota Teknologi Tbk (EMTK), or the Emtek Group. In 2022, DANA’s operator, PT Espay Debit Indonesia Koe, announced the entry of strategic investments from Sinar Mas Group and Lazada Group.
The entry of both investors demonstrated confidence in the development of the open digital financial ecosystem built by DANA in Indonesia. “As well as DANA’s important role in advancing financial literacy and inclusion in Indonesia,” management told Katadata.
So what is the profile of the controlling entity backing DANA?
Profile of Dana Indonesia
Looking back, the change in DANA’s ownership occurred in 2022 when the previous owner, PT Elang Mahkota Teknologi Tbk (EMTK), began divesting part of its holdings. Through its subsidiary PT Kreatif Media Karya (KMK), EMTK sold a portion of its shares in PT Elang Andalan Nusantara (EAN), the company that oversees DANA’s operator. The shares were subsequently acquired by LazadaPay Holdings Pte Ltd, allowing Lazada Group and Sinar Mas Group to enter as new shareholders in the digital wallet ecosystem.
Based on disclosures on the Indonesia Stock Exchange (IDX), on 10 August 2022, Kreatif Media Karya (KMK) signed a deed transferring 202 Series A shares and 4,792,986 Series B shares to LazadaPay Holdings Pte Ltd. The transaction was valued at approximately US$304.5 million, or around Rp4.5 trillion.
EMTK Corporate Secretary Titi Maria Rusli said that following the transaction, PT Kreatif Media Karya’s (KMK) ownership in PT Elang Andalan Nusantara (EAN) would decrease. However, KMK would receive proceeds from the share sale, which was deemed to have a positive impact on the cash position of both KMK and the company.
“PT Kreatif Media Karya (KMK), a subsidiary 99.99% owned by the company, has sold and transferred a portion of its shares in PT Elang Andalan Nusantara (EAN),” the IDX disclosure stated.
Concurrently, DSSA Corporate Secretary Susan Chandra said that on 10 August 2022, the company’s indirect subsidiary, PT DSST Dana Gemilang (DSST), had completed its investment in PT Elang Andalan Nusantara (EAN).
EAN is the company that oversees digital wallet operator DANA in Indonesia. The realised investment value reached US$200 million, or approximately Rp2.9 trillion. Susan described the move as part of a collaboration in digital business development. She said the strategic partnership was expected to have a positive impact on the development of the digital ecosystem owned by the company and its stakeholders.
Beyond capital, DANA’s technological development is also supported by Ant International. Ant International manages Alipay+, a cross-border payment gateway and global digitalisation platform that connects global merchants with consumers. This collaboration has been one of the foundations of DANA’s digital payment system since its early operations.
Although DANA only launched in 2018, founder Vincent Henry Iswaratioso’s involvement in the digital payments industry began as early as 2008 through the establishment of INDOMOG, a payment platform for the gaming community. He subsequently served as Director and Country Lead of Alipay Indonesia from 2015 to 2017.