Bukalapak Collaborates with Modal Rakyat, Financing MSMEs
Bukalapak in collaboration with Modal Rakyat has just opened financing opportunities for Micro, Small and Medium Enterprises (MSMEs) for the ecosystem network that is in BukaPengadaan.
The financing provided is a type of invoice financing or PO financing. The nominal financing for each loan reaches IDR 2 billion with a tenor of two to three months.
Through this collaboration, BukaPengadaan dan Modal Rakyat wants to help MSMEs grow without having to worry about limited cash flow problems, so that business growth can grow rapidly.
“Collaboration with Modal Rakyat provides additional financing options for BukaPengadaan UMKM partners, as well as supporting the growth of MSMEs in Indonesia so that they can focus on developing their business,” said the Director of BukaPengadaan, Hita Supranjaya, in an official statement, Tuesday (20/4/2021).
The joining of Modal Rakyat to the e-procurement funding sector is at the same time a strategic step in building inclusiveness in Indonesia’s financing. Currently, Modal Rakyat has three funding schemes, namely Business Capital, Multipurpose Capital, and Micro Capital.
With this collaboration, the Modal Rakyat itself targets to be able to channel financing of up to IDR 50 billion for hundreds of MSMEs that are members of the BukaPengadaan ecosystem.
“Through the synergy with the Open Procurement ecosystem, for example, selected MSMEs working on projects related to government spending will have the opportunity to access capital from Modal Rakyat,” said Co-Founder & Director of Modal Rakyat, Stanislaus MC Tandelilin.
6.5 Million SMEs Can Expand Market through BukaPengadaan
BukaPengadaan has been integrated with the Bukalapak marketplace since its release in 2016 to connect with 6.5 million traders with various products.
In 2020, BukaPengadaan was also appointed as a partner operator for LKPP to increase the capability of MSMEs to become suppliers of government procurement.
In addition, BukaPengadaan was appointed to work with the Indonesian Chamber of Commerce (KADIN) to distribute 50,000 aid throughout Indonesia during a pandemic. Not only that, during this pandemic, BukaPengadaan also recorded double growth for all products sold.
The e-procurement business line, BukaPengadaan, from Bukalapak, has opened opportunities to optimize the potential of 6.5 million MSMEs to compete in a wider market since it was launched in 2016.
BukaPengadaan is committed to meeting every need of corporations and the government, through the provision of competitive, accountable, credible, and transparent procurement of electronic goods and services by optimizing the existence of millions of traders throughout Indonesia.
The Director of the Indonesian Procurement Agency, Hita Supranjaya, said that the pandemic is a difficult time for MSMEs. They have the opportunity to be in a wider market and reach consumers with a larger scale of transactions by incorporating into BukaPengadaan integration.
Last year in 2020, BukaPengadaan has been appointed as partner operator by LKPP with a goal to support the Go Digital Micro and Small Business Program (MSMEs).
P2P Lending is Growing During a Pandemic
The peer-to-peer financial technology (fintech P2P) lending platform of Modal Rakyat made by PT Modal Rakyat Indonesia revealed that the pandemic period has actually become a momentum for growth in lending.
Wafa Taftazani, Co-founder & President Commissioner of Modal Rakyat, revealed that the accumulated distribution of Modal Rakyat loans has reached IDR 1.08 trillion as of March 2021, IDR 800 billion of which was distributed in the 2020 period.
According to Wafa, even though the subscriber sector before the pandemic seemed to have decreased, such as restaurants and tourism, distribution performance was replaced by sectors related to e-commerce or familiarly called ‘pelapak online’, agriculture and fisheries, as well as those related to health infrastructure.
Modal Rakyat faces this shifting through cooperation with various sectors, such as ministries/agencies in government, banking such as Mandiri and BRI Agro, as well as channeling from a Japanese financial institution.