ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
36Kr/KrASIA

From under $1: Indonesia's Ovo rolls out new investment product

Unicorn and Bareksa target the young in digital and online 'first' for country

Users of new investment platform Manulife Ovo Bareksa Likuid can instantly liquidate their investment and convert it into Ovo Cash. (Photo by Dimas Ardian)

JAKARTA -- Indonesian e-wallet unicorn Ovo and mutual fund platform Bareksa have teamed up to launch a new investment product allowing small savers to buy funds for as low as 10,000 rupiah ($0.71) from their app.

Karaniya Dharmasaputra, Ovo's president director who is also co-founder and CEO of Bareksa, said that the aim is to increase financial inclusion and encourage more Indonesians, especially the younger generation, to start investing. Combining digital money and online investment is "a first in Indonesia," he said. "We have seen with the integration of Alipay and Yu'e Bao in China that it resulted in massive mutual fund investments among Chinese millennials."

According to Indonesia's Financial Services Authority the country's investment literacy rate remains at 1.7% and most people prefer to keep their money in the bank instead of investing it.

The product, which is called Manulife Ovo Bareksa Likuid (MOBLI), will be operated by Manulife Indonesia, one of the largest asset managers in the country. Users can instantly liquidate their investment and convert it into Ovo Cash. Other platforms such as Bibit or Ajaib only offer to send the proceeds into their customers' bank accounts, which takes around two to three days.

Apart from sharing its leadership, Ovo has also been the sole investor in Bareksa's Series B funding in January last year, as reported by DailySocial. It resulted in a close partnership that allowed Bareksa users to purchase mutual funds with Ovo Cash. As of March, Bareksa had accumulated more than 2 trillion rupiah in assets under management.

Similar to Ovo, payment platform LinkAja also sells investment products on its app in cooperation with robo-advisor Bibit.

KrASIA is a digital media platform focused on technology-driven businesses and trends across the Asia-Pacific region. KrASIA belongs to 36Kr Global, of which 36Kr is a minority investor. Nikkei has a minority stake in 36Kr.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more