Cars are perhaps among one of the most expensive purchases a person would make in their lifetime. About 70-80% of car purchases that happen in Indonesia are facilitated by loans, says an automotive industry expert at a leading consultancy. So it’s not surprising that Singapore-based used car marketplace Carro decided it wanted to own a slice, even if modest, of Indonesia’s banking segment.
Earlier this month, the seven-year-old company invested in two Indonesian banks—IDR 71.7 billion (~US$5 million) in conglomerate Chairul Tanjung-owned Allo Bank and an undisclosed amount in the SME-focused Bank Index.
However, they are both minority investments, just a fraction of what the banks actually raised.