Earnings call transcript

PT GoTo Gojek Tokopedia 2Q25 Earnings Call Transcript

Corporate Participants

Patrick Walujo PT GoTo Gojek Tokopedia Tbk - President Director, Group CEO

Catherine Hindra Sutjahyo PT GoTo Gojek Tokopedia Tbk - Deputy CEO and Vice President

Director

Simon Ho PT GoTo Gojek Tokopedia Tbk - Group CFO

Hans Patuwo PT GoTo Gojek Tokopedia Tbk - Group COO and President, On-Demand Services

Sudhanshu Raheja PT GoTo Gojek Tokopedia Tbk - President, Financial Technology

Joel Ellis PT GoTo Gojek Tokopedia Tbk - Head of Investor Relations

Conference Call Participants

Ferry Wong Citi

Henry Wibowo J.P. Morgan

Ryan Winipta Indo Premier Sekuritas

Ari Jahja Macquarie

Presentation

Joel Ellis

PT GoTo Gojek Tokopedia Tbk - Head of Investor Relations

Hello, everyone. This is Joel Ellis, Head of Investor Relations. Welcome to the PT GoTo Gojek

Tokopedia Tbk Second Quarter 2025 Earnings Conference Call. Please be advised that today's conference is being recorded. On today's call, Patrick Walujo, President Director and Group CEO, and Simon Ho, Group CFO will deliver prepared remarks. Following their commentary, we will open up the call for questions and be joined by Catherine Hindra Sutjahyo our Deputy CEO and

Vice President Director, Hans Patuwo, our President of On Demand Services and Chief Operating

Officer, and Sudhanshu Raheja, our President of Financial Technology Services.

We would like to highlight that the information presented today has been prepared solely based on unaudited, consolidated, selected financial information for the three month period ended June

30th, 2025. We have also submitted and published our consolidated financial statements as of, and for the six months ended June 30th, 2025, that have been reviewed. As a reminder, today's discussion may contain forward looking statements about the company's future business and financial performance, as well as certain non Indonesian financial accounting standard measures

PT GOTO Gojek Tokopedia 2Q25 Earnings Call Transcript 1 as complements to the Indonesian Financial Accounting Standard disclosures. Before using and or relying on these measurements and forward looking statements, please take note of our disclaimer and cautionary statements disclosed in our earnings presentation and press release.

During the earnings call, we will review the results of our operations and earnings presentation, which can be found on our website. Our reporting currency is the Indonesian Rupiah, and we will denote the US dollar equivalent by applying an exchange rate of 16,233 rupiah to 1 US dollar based on the middle rates published by Bank Indonesia as at the end of June 2025.

We will refer to pro forma figures to facilitate like-for-like sequential and year-on-year comparisons of our performance following the closing of our announced agreement with TikTok and the deconsolidation of GoTo Logistics. These pro forma figures assume that Tokopedia and

GoTo Logistics were deconsolidated on January 1, 2024. We will also refer to Group EBITDA, which is calculated from profit and loss from operations excluding depreciation and amortization as well as non recurring items. Further, we will also refer to Adjusted Operating Cash Flow, which is operating cash flow after adjusting for cash flows related to the lending disbursements and pass through funds.

For more information and additional disclosures on our recent business and financial performance, please refer to our earnings press release and supplemental presentation, which can be found on our IR website.

With that, I will turn the call over to Patrick.

Patrick Walujo

PT GoTo Gojek Tokopedia Tbk - President Director, CEO

Hello, everyone, and thank you for joining us today. In the second quarter, GoTo Group set new records across the board with group core GTV growing 43% year on year, net revenue rising 23% and adjusted EBITDA hitting a new high of 427 billion rupiah or 26.3 million US dollars, growing

491 billion rupiah or 30.2 million US dollars year on year.

Our profitability journey has progressed substantially over the past few quarters, and I am pleased to note that during Q2, we generated positive group EBITDA for the third consecutive

PT GOTO Gojek Tokopedia 2Q25 Earnings Call Transcript 2 quarter, totaling 292 billion rupiah or 18 million US dollars. Group EBITDA shows the recurring

EBITDA of our core business demonstrating significant ongoing efficiency improvements.

In addition, we delivered positive adjusted operating cash flow of 313 billion rupiah or 19.3 million

US dollars, demonstrating the strength of our strategy and sustained momentum in the business.

Both Fintech and On Demand Services also delivered their best ever adjusted EBITDA, which I will discuss in more detail shortly.

These results keep us firmly on track to meet our full year adjusted EBITDA guidance of 1.4 to 1.6 trillion rupiah, as we seek to create a customer centric technology business that supports the livelihoods of countless driver partners and merchants across Indonesia.

Indonesia is one of the world's largest yet still underpenetrated digital markets, which gives us a long runway for growth. To capture it, we must ensure we're fully equipped with the best people and technology. The main barriers we identified were legacy tech infrastructure, which was built over a number of years, as well as the fact that our tech talent pipeline was unable to keep up with the demands of a rapidly growing business.

In the second quarter, we tackled our tech infrastructure problem, by replacing our cloud systems, which were becoming increasingly inefficient and costly, with brand new infrastructures provided by Alibaba Cloud and Tencent Cloud.

We completed the migration in the second quarter on time, resulting in a lighter, more agile platform that will accelerate our product pipeline, enabling quicker cross-business product rollouts and innovations.

This project ranks among the most complex of its kind globally. It required coordinating four cloud providers across four geographies and moving all core business lines in under a year, all without material downtime or user disruption. All GoTo data is stored and processed on

Indonesia-based infrastructure, ensuring full data sovereignty compliance and enterprise grade security for consumers and partners. While capability and speed were the priority, the financial

CITI

Yeah, hi. Yeah, can you hear me?

Joel Ellis

PT GoTo Gojek Tokopedia Tbk - Head of Investor Relations

We can hear you. Perfect. Great.

Ferry Wong

CITI

Okay. Congratulations on your continued improvement on your EBITDA. Yeah, I got two questions. First, with the current macro environment, how is this affecting your Fintech and On

Demand Service businesses? This is my first question. The second question is, can you break down your loan book between the cash loan and BNPL and share the split of origination from

TTS, Tokopedia, GoPay and Gojek. And also, how is BNPL growth trending on TikTok? Those are my two questions. Thank you.

Patrick Walujo

PT GoTo Gojek Tokopedia Tbk - President Director, CEO

Thank you, Ferry, for the questions. I will ask Catherine to address the first question which is around the current macro environment and the impact on our Fintech and On Demand Services.

Catherine Hindra Sutjahyo

PT GoTo Gojek Tokopedia Tbk - Deputy CEO and Vice President Director

PT GOTO Gojek Tokopedia 2Q25 Earnings Call Transcript 11

Thank you, Patrick. Thank you Ferry, hi how are you? So let me address the first question on the current macro environment's affect on our businesses, both Fintech and On Demand Services.

Yeah, as mentioned right in the result earlier that while we do see that the macro indicators show some softening, but I think this is where we are, as a platform, especially our ecosystem of the

Fintech and ODS combined together, where we're uniquely positioned here. As a tech company, we believe we're more nimble, we're more agile, right? We're able to adjust our strategies more swiftly, we're able to adjust kind of like how we're seeing the situation also faster probably compared to the more traditional kind of set up, right? This is clearly shown hopefully in our 23% continuous year on year growth this quarter as well.

So maybe if I may share how we see this situation, as a platform, as a GoTo whole ecosystem.

There are three key things that we see that differentiate us. Number one is the power of the ecosystem that has been mentioned. Between the GTF, the Fintech business and ODS business, we actually have a unique kind of access to data, a kind of access to the customer that makes us more efficient as a platform. Our ability to acquire users, our ability to serve them and of course, our ability to monetize them better as well. I think this is where we're playing to our strength as an ecosystem. Of course, on top of that as well through our payment business, the structural tailwinds are also very important here, this is the rising digital payment adoption and expanding financial inclusion. We believe this continues to give us a long runway, and we're very well positioned to capture this. That's number one, the power of the ecosystem.

Secondly is the tech capabilities, as we mentioned, because we're a tech platform here, we believe our continuous investment in our tech stack, right, also plays a very important role here. A couple of examples. The first one, right, if you think about the Food Delivery business, a lot of the food merchants today with their limited resources, they will look around and see where they can best deploy their resources, their promo money, their budget. Through our data, algorithm, our investment in our promo and promo targeting kind of engine, our platform is able to provide better ROI, for the lack of better word, for our merchant. This is again where we continuously deepen this capability of ours. The second example is the promo targeting engine, right? This is able for us to react quicker, right? With the current situation, which customer to target, which kind of use case to target, so on and so forth. This is the second one. The third one, as Pat mentioned earlier, we will continue with our two-track approach here while we continue to kind of like focus on our premium segment as we have shared in the past few quarters, but we'll also continue to

PT GOTO Gojek Tokopedia 2Q25 Earnings Call Transcript 12 deepen our penetration understanding of the mass market as well. This can clearly be seen through the continued growth of the GoPay app as well as the Hemat strategy that we continue to improve on.

Last but not least, with our recent cloud migration and the China office opening, our technology foundation is lighter, faster, more scalable. And we believe that we are speeding up as well, accelerating in our speed of shipping products. Next half, our pipeline is probably the largest we've ever seen with a lot of features, initiatives tailored not just to the premium user, but also to the mass market user that we have kind of like in our pipeline. We believe as we roll these out, again, the power of the ecosystem will continue to deepen our engagement while still delivering sustainable profitable growth. Sorry for the long answer, but yeah, very important.

Patrick Walujo

PT GoTo Gojek Tokopedia Tbk - President Director, CEO

Thank you, Catherine. Sudhanshu, can you address the second question about our loan book?

Sudhanshu Raheja

PT GoTo Gojek Tokopedia Tbk - President, Financial Technology

Sure Pat. Hi Ferry. Thanks for the question. So your question was in two parts. Let me go through it one by one. First, on platforms, we see incredibly strong momentum led majorly on our own ecosystem. The majority of our loan outstanding, I would say roughly close to about 60%, comes through the GoPay and the Gojek apps, and those channels are growing faster than third party marketplaces. Now this is powered by better cross selling, availability of more data and much deeper insights for these users than outside the ecosystem. However, at the same time, partnerships such as TikTok broaden our reach. They bring in a lot of new users and complement our core distribution. On TikTok Shop and Tokopedia specifically, the BNPL momentum has been strong and we're working on launching new products and features. As Pat shared earlier, in Q2, we also launched the cash loans on the TikTok platform to better serve that customer segment.

It's a new start, but it's bringing in a lot of new users.

PT GOTO Gojek Tokopedia 2Q25 Earnings Call Transcript 13

Now moving on to the second part of your question. On the product mix, while we don't break out the exact splits, I would say that cash loans make up a larger share of outstanding principle given the higher ticket sizes and the longer tenures, while BNPL represents a larger share of users and a larger share of transactions. All in all, we've been growing fairly fast. We grew roughly

90% year on year, and the loan book is at about 6.6 trillion as of last quarter. In the coming half, we gonna continue to expand both BNPL and cash loans, especially within the GoTo ecosystem where engagement, risk performance and unit economics are the strongest. Thank you.

Patrick Walujo

PT GoTo Gojek Tokopedia Tbk - President Director, CEO

Thank you Sudhanshu.

Joel Ellis

PT GoTo Gojek Tokopedia Tbk - Head of Investor Relations

Thanks very much, Ferry. We'll go to the next analyst.

The next analyst is Henry Wibowo from JP Morgan. Henry, could you please unmute yourself and go ahead and ask your question?

Henry Wibowo

J.P. Morgan

Hi, thank you, Patrick, Simon, Joel, and GoTo team for the presentation and congratulations on the strong set of results. Three questions from my end. Number one, could you tell us more about this partnership between Telkomsel and TikTok? How's it gonna broaden the Fintech strategy?

And do you see further partnerships of this nature are going forward? The second question is on net profit. I think congratulations on the achievement for adjusted EBITDA and also group

EBITDA, but how about net profit? Do you have any timeline when GoTo can actually deliver positive net income? And what's the bridge between the EBITDA to income right now? Lastly, on

ODS, what's the growth outlook for the remaining of this year and also next year, 2026, if there's

PT GOTO Gojek Tokopedia 2Q25 Earnings Call Transcript 14 any? I think based on the latest number, it seems like GoTo has been growing decent at about maybe high single digit. Given the rising competition, maybe could you share more about the outlook?

Patrick Walujo

PT GoTo Gojek Tokopedia Tbk - President Director, CEO

Thank you, Henry. I will ask Sudhanshu to address your first question about the Fintech partnerships with Telkomsel and TikTok.

Sudhanshu Raheja

PT GoTo Gojek Tokopedia Tbk - President, Financial Technology

Thank you Pat. Hi Henry, thanks for the question. Okay, so partnerships, I think the most powerful

Fintech partnerships are ones that disappear into the background. They're not just distribution deals, they're seamless integrations that bring financial services and make them part of everyday lives of people. That's why in partnerships, what we focus on is providing value to our customers, whether they're on our apps or they're on our partners' apps.

Just to lay out the background, right? Telkomsel is Indonesia's largest telco with very deep reach into consumers nationwide. Now all of our work together with them spans multiple initiatives from payments integration to launching products that we know our customers will love and then leveraging our combined scale to reach millions of potential customers. Some of the examples that Pat shared earlier, for example, the Telkomsel wallet builds on our experience of operating wallets within Gojek and Tokopedia, applying those learnings to improve the customer experience within the Telkomsel app. Over the coming months, we will keep seeing incremental features that keep coming on the back of this feature.

Coming to TikTok, they don't need an introduction. They're one of the world's largest social media platforms with very high engagement in Indonesia. Through our partnership, we're creating new ways for users to access and use our payments and lending solutions seamlessly in their daily flows. For example, when a user decides they want to buy a product on Tokopedia or TikTok, we

PT GOTO Gojek Tokopedia 2Q25 Earnings Call Transcript 15 help provide options to simplify their buying decision. You can go for it. You can go buy it right now. You can go pay for it overtime, depending on whatever is your condition at that point in time. And all of these options are lending to strong growth in both payments and lending.

So yes, we see very significant scope for further partnerships of this kind. Done right, these can accelerate adoption, deepen our engagement and open up completely new channels over the medium term. Thank you.

Patrick Walujo

PT GoTo Gojek Tokopedia Tbk - President Director, CEO

Thank you Sudhanshu. Catherine, I'll let you answer the question about the net profit at group level and how we bridge adjusted EBITDA to net income.

Catherine Hindra Sutjahyo

PT GoTo Gojek Tokopedia Tbk - Deputy CEO and Vice President Director

Thanks Pat. Hi, Henry. Thank you for the question. As I've mentioned earlier, we've put the five consecutive quarters of adjusted EBITDA improvement and three quarters for the group EBITDA positive. This is actually after the stock base compensation. So from here, to your question, to bring it to the net income, right? The main item between our EBITDA and the net profit is the share of our Tokopedia result, right? As you know, Tokopedia's result is a non cash item and it's not reflective of our core operating performance. So this is the gap between the EBITDA and the net income.

Another one on the stock base compensation, as mentioned as well, is also non-cash. This is the difference between the adjusted EBITDA and group EBITDA. It is also non-cash, and as you see, we remained discipline in our SBC with our quarter on quarter continuing to be managed lower as well. So our operating and financial performance the past few quarters have been consistently strong and expanding, and we expect to continue that momentum. This is putting net profit clearly within sight. Thank you.

PT GOTO Gojek Tokopedia 2Q25 Earnings Call Transcript 16

Patrick Walujo

PT GoTo Gojek Tokopedia Tbk - President Director, CEO

Thank you, Catherine. And Hans, would you please address the third question about the growth outlook for our On Demand Services? For the rest of 2025.

Hans Patuwo

PT GoTo Gojek Tokopedia Tbk - Group COO and President, On-Demand Services

Sure thing. Thanks for your question Henry. On the growth outlook for ODS for the rest of the year, first, let me state that we're very committed to do two things. One is to maintain and grow market share while at the same time improving profitability through better products and also increasing our operating leverage. Overall on the top line, if you look at some of the publicly available information, and consumer confidence indices has trended lower and retail sales growth has also slowed compared to previous year. Hence, we expect the full year GTV growth for ODS to grow, but at a somewhat more measured pace. The mitigation for this are twofold.

One is continuing to increase penetration. When we look at the penetration levels of our services in Indonesia compared to comparable benchmark markets, there's still room to grow penetration, so that's what we will continue to focus on. Secondly is the strategy that Pat has outlined earlier in the prepared remarks, which is our two-pronged approach, right? On one hand, continuing to deepen the penetration growth in the premium segments, while simultaneously pursuing a clear mass market growth strategy that is based on product and not based on discounting levers.

I think if I were to put all together one example of that was in the previous quarter where even as competitive intensity rose, we've acted quickly with very targeted, very market specific actions.

We've protected our market share, while at the same time maintaining our profitability. So I think that charts out a bit of the road map of what we intend to do for the rest of the year, which is to continue to maintain and grow our market share while at the same time improving profitability.

Thank you, Henry.

Joel Ellis

PT GoTo Gojek Tokopedia Tbk - Head of Investor Relations

PT GOTO Gojek Tokopedia 2Q25 Earnings Call Transcript 17

Thanks very much, Henry. We will go to another analyst, Ryan Winipta from Indo Premier. Please unmute yourself. Go ahead and ask your question.

Ryan Winipta

Indo Premier

Yeah, thanks, Joel. And can you hear me?

Joel Ellis

PT GoTo Gojek Tokopedia Tbk - Head of Investor Relations

Yeah, we can perfectly

Ryan Winipta

Indo Premier

Thanks, Joel. And congratulations on consecutive positive EBITDA. And I have two questions from my side. I think we already discussed about like the current macro environment and all of the concern that is happening around us. But I just wanted to know well about the sustainability of the Fintech group trajectory in terms of the loan outstanding. Can the previous guidance still be used for the rest of the year? And my second question is related to cost reduction, whether there is any opportunity to do further cost reduction or some kind of efficiency improvement within the company? I think that's all of two of my questions. Thank you.

Patrick Walujo

PT GoTo Gojek Tokopedia Tbk - President Director, CEO

Thank you, Ryan. Sudhanshu, can you please address the first question about the sustainability of

Fintech's growth trajectory?

PT GOTO Gojek Tokopedia 2Q25 Earnings Call Transcript 18

Sudhanshu Raheja

PT GoTo Gojek Tokopedia Tbk - President, Financial Technology

Sure Pat. Thank you, Ryan. Great question. I personally spend a lot of time thinking about this. So maybe let me share more. So we've been growing the Fintech business for the last few years, and I think we're very optimistic about being able to sustain this growth in the future. Let me share why. So Indonesia is one of the largest and fastest growing markets for digital payments in the world. They're very strong structural tailwinds as the government is digitizing the country. And as that happens, more and more users become digital for the first time and from where we are, we're very well positioned to lead that growth.

Maybe let me split the market into two different segments. If you look at affluent users first, deep penetration on Gojek and Tokopedia has made GoPay the market leader among wallets in this segment. We built this position over years with multiple products, GoPay, GoPayLater, GoPay

Tabungan, all of which continue to grow rapidly and expand into new use cases. We serve virtually every high-frequency use case there is. We're very strong in online payments, and our offline QRIS volumes have grown at high-teens every quarter for the past few years. We've also had notable wins, like we built out a AI powered split bill feature launch last year on the GoPay app, which is now the largest in this category in Indonesia. And based on its success, we're doubling down on a lot of new social use cases, and you'll see more of that in the quarters to come. So if you look at affluent users, we are very strong there, and we intend to continue to strengthen our leadership in the segment. If you look at the other side of the market, the mass market, that is one of the most underserved segments. And we decided to build a standalone

GoPay app to meet the needs, the specific needs of the mass market. Over the last two years, we've seen significant growth, especially in tier 2 and tier 3 cities.

Now maybe let me take a moment to explain more about this. So these customers have different requirements, so we've had to fully tailor our solutions to make sense to this segment. For example, we started with making sure that we built a small app because when people run low on disk on their phone, they delete the apps that are bigger. And we wanted to be sure that we don't get deleted. Then, for example, we launched free transfers because, well, you shouldn't have to spend money to move your own money around. And then third, we launched our consistently low prices campaign for bills and mobile top-ups. And we did all of this by doing a lot of background work, like working with tens of partners to figure out how do we keep our cost to serve incredibly

PT GOTO Gojek Tokopedia 2Q25 Earnings Call Transcript 19 low and like building GoPay's code so that we can pitch the right product to the right user when you come to our app.

All of this together has made us one of the most downloaded apps in the country in the last two years. I think according to Play Store, Android app has been downloaded a little over 50 million times. What we're doing is we're listening to the feedback, keep our experiments running, keep launching new stuff and we keep going. Now late last year, we launched another product that we call GoPay Games. It's a platform for in-game top ups. And in a few short quarters, we've seen that Games has become one of the largest in its category. And we got a lot of feedback from our users and they love the games, so then we went on to launch roughly about 50 mini games in the group app. And that had tremendous, you know, engagement. So we went on to build GoPay Pet, one of the games that we built out. And we've seen very strong engagement there as well, to the point that now roughly 10% of our monthly active users are active on at least one of these games.

What these are driving is exceptionally high engagement, really cheap prices and very strong top of mind.

Now in the coming quarters, we're taking more steps to make GoPay the most available wallet, and we're doing that by a few key areas. One, we're deepening our penetration in cash in / cash out points nationwide. Digital to cash is one of the key frontiers that you have to cross. Second, we're going after public transportation. We're now, as of today, the only wallet which is accepted across MRT, Transakarta, KCI, GoTransit, you name it. If you're in Jakarta and you gotta take public transport, we're the only one that works across. As you mentioned earlier, we're working with the telcos to bring digital payments to areas previously outside of our reach. In the coming quarters, we're going to get this user base not with discounts, but by building consumer centric products that help solve their lives' problems. So at least we see a very strong potential for growth here.

Lastly, coming to monetization. This one is simpler. We've consistently shown our ability to grow our loan book while keeping a very tight watch on portfolio quality. You can see that in our delinquency data. Even though we have doubled our loan book over the last year, our lending penetration on Gojek and GoPay apps is still in low single digits, which means we have a lot of headroom. And as GoPay scales, this headroom will only further increase. So if you put it all together, all five things, a large and fast growing-market, strong positions in both affluent and mass markets, consumer centric products, a highly engaged user base, and a disciplined

PT GOTO Gojek Tokopedia 2Q25 Earnings Call Transcript 20 approach to lending. This is what we believe is a recipe for growth, and we're optimistic that we can continue this for years to come.

Patrick Walujo

PT GoTo Gojek Tokopedia Tbk - President Director, CEO

Thank you, Sudhanshu. Simon, would you please answer the second question about opportunities for further cost reduction and efficiency improvements.

Simon Ho

PT GoTo Gojek Tokopedia Tbk - Group CFO

Yeah, yes, Patrick. Thank you, Ryan, for the question. Short answer is yes, we have been and we will continuously focus on driving our cost efficiency and cost improvements. As Patrick mentioned earlier in his remarks, we spent the last year pretty much, we've upgraded and refreshed our technology infrastructure. And one of the benefits of that is we're now on much lower cost technology infrastructure with our new cloud providers. As we mentioned before, the rates on these new clouds are now more than 50% lower than before. And of course, this is highly beneficial for the unit economics for the business.

So a second point to make is we're also continuously driving positive operating leverage for the business. And you would have noticed if you look at the group numbers, you know it has been the case in the last several quarters and going back many quarters now that we growour operating expenses at a slower pace than our revenue growth, quite substantially lower, and we intend to continue to drive the positive operating leverage through the business through tighter cost discipline and also through the product innovations and in improving our revenues. Our goal is to achieve a leaner cost base and be able to achieve durable margins while we're able to continue to invest in product and technology that can drive the business forward. I hope that helps answer your question Ryan. Thank you.

Joel Ellis

PT GOTO Gojek Tokopedia 2Q25 Earnings Call Transcript 21

PT GoTo Gojek Tokopedia Tbk - Head of Investor Relations

Thanks very much, Ryan. We'll go to the next analyst, Ari Jahja from Macquarie. Ari, please unmute yourself and go ahead.

Ari Jahja

Macquarie

Hi, Patrick, Simon, Joel, and GoTo team. Thanks for taking my question and well done for a resilient quarter. So I have three questions for today. So first two on Fintech. So first, what would be the strategy to drive loan book growth in the second half of the year to reach 8 trillion of loan book by year end, especially after 9 to the second quarter of growth. Second, on Fintech, can you discuss the credit risk trends and also the outlook for the rest of the year? And then lastly, on

ODS, in light of the competition, what are your expectations for margins and pricing for the second half of 2025? Thank you.

Patrick Walujo

PT GoTo Gojek Tokopedia Tbk - President Director, CEO

Thank you, Ari. Sudhanshu why don't you take the first two questions about the strategy to drive loan book growth to achieve our target of 8 trillion rupiah of loans outstanding by year end, and the credit risk trends for the rest of the year.

Sudhanshu Raheja

PT GoTo Gojek Tokopedia Tbk - President, Financial Technology

Thank you Pat. Hi Ari, great question is always, maybe let me start off with the first one. Our strategy to drive loan book growth for the second half. Again, I think this is two parts. I've already talked for a long time on user growth and how we are bringing more people. So I'll not cover that again. As that keeps moving, that gives us a lot of headroom.

PT GOTO Gojek Tokopedia 2Q25 Earnings Call Transcript 22

In terms of how we grow the lending users, the strategy is two parts. It's time tested and proven.

We've done it consistently, and this is what we'll continue to do in the coming half. First is on expanding our lending customer base. And second is on increasing lending to existing customers. Maybe let me talk about both of them. Now first, on new users, as I said earlier, only a small percentage of our users take a loan with us today. Compare it for of all the users who are in the go to ecosystem. Which means we have significant headroom. Now to go after new users. We keep upgrading our credit scoring models and cross selling capabilities to extend loans to more first time borrowers, with the key measure being that we do not want to compromise quality. We start with very small loans and over the next few quarters, slowly increase the limits and tenure as we understand those users better. Our delinquency data over the past six quarters shows that credit quality has been, remained consistently strong and stable. And over the coming half, that is what we intend to do as well.

Second, coming on to existing customers or portfolio management, account management. Now here, we are seeing a very healthy growth from customers who have successfully repaid earlier loans. And they come back for more. This reflects satisfaction and trust in our products, and those positive experiences are leading to higher usage, deeper penetrations and is adding meaningful scale to the loan book. Just to add, the repeat loans always have significantly better risk performance because we understand those users a lot better.

Now if you look at the half so far, we have, we've come a long way. We are now at close to 6.6 trillion IDR. We have half of the year to go, which is usually the faster-growing half of the year. So as long as we continue on the strategy of going after users while keeping a tight watch on the quality, I feel fairly confident that we will reach the 8 trillion target by the end of the year.

Now coming out to your second one, which is on the credit risk trends and the outlook for the rest of the year. Now I agree that it's a very relevant question right now, given the market environment. Now as a team, we closely monitor the macroeconomic trends in Indonesia, globally, as well as the asset quality amongst competitors and major banks, and we're seeing what you're seeing as well. However, our experience has been different. Over the past year, we have grown the loan book significantly, and we have done so without any material deterioration in credit quality. And I think the reason for that are three things. First, our ecosystem gives us a unique advantage. Think about it. There are tens of millions of customers generating billions of transactions on our platform. And that rich data set, which is now strengthened even more by the

PT GOTO Gojek Tokopedia 2Q25 Earnings Call Transcript 23 scale of the GoPay app, and its expanded product set, gives us very deep insights into individual credit risk than traditional lenders can access.

Second, our credit model is very dynamic. We can adjust quickly to market conditions and constantly validate model output through live lending experiments, which we do all the time, which helps us make course corrections in real time. Third, our loan portfolio is short duration.

This means it allows us to make rapid adjustments if credit conditions turn, which limits risk while keeping quality stable. Now if we hit a risk scenario or a stress scenario, which there are no guarantees for in life, we could tighten credit standards very quickly, which might slow growth in the short term but protect quality as most of the repaid is short term and gets repaid within a few months. So overall, our focus on short loans, combined with ecosystem insight and flexibility, has kept our credit quality consistently stable, even in a softer macro. And looking at this, I feel that the trend looks good. We are hoping that there is no major change in the macro in the coming six months. And based on that assumption, we're very confident that we should be able to reach the

8 trillion loan book by the end of the year while maintaining a healthy portfolio quality. Thank you.

Patrick Walujo

PT GoTo Gojek Tokopedia Tbk - President Director, CEO

Thank you Sudhanshu, Hans, would you please answer the third question about the expectations of margins for the On Demand Services?

Hans Patuwo

PT GoTo Gojek Tokopedia Tbk - Group COO and President, On-Demand Services

Sure thing, will do Pat. Hi, Ari. Thank you for the question. On ODS bottom line, we expect margins to remain stable, and we also expect profitability to remain strong. And we will continue to execute our two track strategy, which is on one hand, growing the premium segments, which tend to have higher margins, while at the same time growing the mass market through product levers vis-a-vis discounting levers. So combined, putting things together, we're on track to deliver at least 1.1 trillion rupiah of adjusted EBITDA this year, which will be 60% higher than what it was last year. I hope this answers your question. Thank you.

PT GOTO Gojek Tokopedia 2Q25 Earnings Call Transcript 24

Ari Jahja

Macquarie

Thanks GoTo team and all the best for the year. Thanks.

Joel Ellis

PT GoTo Gojek Tokopedia Tbk - Head of Investor Relations

Thank you very much, Ari. And it is past the top of the hour. That would be the last question we have for today. Thank you very much all, for attending this call. And we look forward to speaking to many of you in the coming weeks and months.