This story appears in the December 2023 issue of Forbes Asia. Subscribe to Forbes AsiaThis story is part of Forbes’ coverage of Indonesia’s Richest 2023. See the full list here. Two years ago, investors piled into Bank Jago, one of Indonesia’s leading digital banks, and drove up its shares to make it Indonesia’s fourth-most valuable bank with a market cap of $14 billion. President commissioner Jerry Ng’s vision to serve the country’s large unbanked population drew backers, such as Indonesian superapp GoTo and Singapore’s GIC. The stock frenzy catapulted Ng, a veteran banker known for his innovative streak, into the billionaires club with a net worth of $3.2 billion in 2021. Ng had acquired shares in what was then called Bank Artos in 2019. In 2020, after the bank was renamed Bank Jago, he made his debut in the ranks of Indonesia’s richest for the first time. Investors’ exuberance over Bank Jago and fintech overall, has faced a reality check in the post-pandemic world. Last year, Ng’s net worth, based on his nearly one-fourth holding in the bank, fell to $1.2 billion. With shares plummeting 63% since then, the banker no longer features among Indonesia’s 50 richest this year.“For digital banks like [Bank] Jago, there are so many issues,” says Harry Su, head of equity capital markets at Jakarta-based Samuel Sekuritas. He notes that to attract customers, digital banks offer 2% to 3% higher interest rates on deposits compared with conventional banks. “They are suffering from higher costs of funds, worsening loan quality requiring increased provisions, and softer loan growth on asset quality concerns.”Aside from Ng, some of Indonesia’s savviest tycoons had bet on digital banking during the pandemic. Shares of Allo Bank Indonesia spiraled up after retail and media mogul Chairul Tanjung acquired a majority stake in 2021 and announced ambitious digital plans. The bank’s shares have tumbled 40% since last year, which president director Indra Utoyo explains in a text message, is due to “factors beyond our control, such as macroeconomic conditions, geopolitical issues, stock market sentiment, and so on.”
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