00:00So talk us through these numbers and do you think the momentum can be sustained
00:04given that the broader macroeconomic and consumer environment does remain challenging?
00:11Hi Heidi, yes. So we are quite bullish about the prospects for this year.
00:16We will take a look at it. Indeed, there are some concerns and volatility around the macroeconomic situation.
00:23However, I think we've got two things that are going for us.
00:25So one is really the emergence of our fintech unit. Our fintech unit posted profitability that is 5x of what
00:33it was a year ago.
00:34And that is really, really growing very nicely.
00:37And in this particular market where lending and financial services are still relatively underpenetrated,
00:44we feel that this will continue to be a strong engine for growth.
00:48The second thing that is helping us is that we have a fairly good chunk of our customers
00:53so coming perhaps a bit more from the urban affluent market and their demand tends to be a little bit
00:59more resilient.
01:00So I think with these two things, we believe that we still have some runway to grow this year,
01:06even in spite of the existing conditions.
01:11Can you talk about some of the risks then, particularly when it comes to the psychology of the consumer?
01:16Do you see downside risks at all in your outlook?
01:20Yeah. So I think there are two parts.
01:23One is that there is perhaps some concern around, for example, the Indonesia stock market isn't doing that well right
01:31now.
01:32And the rupiah against the U.S. dollar has somewhat depreciated quite significantly.
01:38So I think these are creeping in a little bit.
01:40But so far, you know, inflation has held constant.
01:43And as long as we see that inflation remain in line, perhaps the overall impact to the overall consumer psychology
01:50will be somewhat maintained.
01:52It is also very important that the government has continued to keep the price of subsidized fuel,
01:58the lowest grade of fuel, to be constant.
02:02And that has helped in keeping inflation down.
02:04So I think that remains a very critical indicator of kind of how the overall sentiment goes.
02:12The second is, you know, there probably are, we need a bit more clarity around some of the, some new
02:18regulations that are coming in play.
02:20And so I think between these two things, if we see positive momentum,
02:23we suspect that the overall consumer psyche will remain to be where they are today.
02:31It's interesting you mentioned some of the challenges when it comes to the stock market.
02:36The 50 rupiah minimum rule seems to be impacting GoTo's share since about May.
02:42Give us your thoughts on this.
02:44And would you potentially consider any sort of corporate action to deal with it?
02:50Yes, so we've spent a lot of time thinking and talking about this.
02:54So I'll give you the short version.
02:56Look, we, it was really a rollercoaster ride, a little bit of a rollercoaster ride for us.
03:01You know, we announced our Q1 results on April 28th and the market reacted positively.
03:06You know, we went up from 51, 52 rupiah up to 58 rupiah.
03:11However, then there came some regulatory uncertainty with the announcement of the 8% commission cap.
03:16And between that and the overall market sentiment, you know, that brought us down to 50 rupiah and has stayed
03:22there since.
03:23So, look, we do not believe that this is, this reflects the fundamental value of the company.
03:29And we believe that the results that we are showing over the long run will prove itself.
03:34We have, though, to your point, looked at various kind of corporate action.
03:39We have requested from the shareholders and have received on, in last June, in June's shareholder meeting, a buyback program.
03:48So we're authorized to buy back up to 3.5 trillion rupiah, which is just around $200 million worth of
03:56stock.
03:57Now, we are not exactly rushing into it.
03:59We want to make sure that the timing's right.
04:01We want to make sure that the macro conditions are right so that when we do deploy this money, it
04:06will have the desired impact.
04:08The second thing that we have announced, actually, is we will be cancelling treasury shares.
04:12So we have, we will be cancelling about 2.7% worth of float in the next coming months as
04:20we go through the regulatory process.
04:25I wanted to talk a little bit about the fintech side of the business, right?
04:28What's your outlook for the rest of 2026?
04:32Merchant services, payments, lending.
04:34How do you view all of those parts of the business?
04:38Yeah.
04:38So, it is, this part of the business has been gathering momentum for maybe a year, year and a half
04:45now.
04:46And we're really seeing it break through.
04:48The number of users is up year on year, 30%.
04:51The number of transactions is up 90% year on year.
04:54The GTV is up 90% year on year.
04:58Loan book is up significantly.
04:59And so it's really, really gaining momentum.
05:02The first thing that we, I want to convey is that we are very, very, very, very vigilant on risk.
05:09We published the quality of our lending book.
05:12And so far, we have been able to hold the risk quality constant.
05:17As long as that holds, we will continue to grow.
05:21I have to say also that in Q2, we've taken some preemptive measures.
05:25So, we really clamped down.
05:28We became tighter with some of our lowest risk quality cohorts.
05:35Having said that, the business is still growing very, very healthily.
05:38And as long as we see that the cost of credit remains under control,
05:42I believe that the business will continue to scale and to grow.
05:45So, one other thing to note, Heidi, is that we're also getting more and more users.
05:49And the penetration rate of the overall go-to ecosystem users who cross over to lending is still fairly limited.
05:57So, there's still ample room to grow.
06:01How much slimmer do you expect this business to be after the recent cost and job cuts?
06:09I'm sorry, Heidi. Could you repeat, please?
06:12In terms of broader restructuring efforts, recent job cuts and cost cuts,
06:17how much more streamlining might we expect to see from go-to?
06:25So, we are evaluating that, I think.
06:28And we don't have an exact number yet, but we will be looking to optimise our costs.
06:34There could be certain areas around marketing that we'll look at.
06:37And we will also be looking at some of our other OPEX costs as well.
06:40But no specific number yet at this point in time.
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