KoinWorks Records Health and Culinary Sector to Grow up to 200%
Financial technology startups (fintech lending) noted that Micro, Small, and Medium Enterprises (MSMEs) included in their portfolios experienced growth during the pandemic by more than 200%. High growth MSMEs are from the health, culinary and fashion sectors.
The health sector, for example, has increased by 44% on average since the start of the pandemic. However, there are several health subsectors which increased by more than 200%. Then, culinary MSMEs and SMEs who sell ready-to-cook food also experienced an increase of 54%.
KoinWorks Chief of Operating Officer Bernard Arifin said that at the end of this year the company will evaluate the development of the MSME business, which will become its portfolio. Sales transactions for several sectors have increased significantly, he said in the #BangunResolusi Talks on Thursday (3/12).
There are also sectors that have experienced a decline, such as the fashion sector. However, in some fashion subsectors, there are still up to 50% increase. MSMEs in the fashion sector that experienced an increase in transactions were MSMEs that were digitizing their business.
Like selling on an e-commerce platform. We see that the digital-connected MSMEs take advantage of the situation to digitally transact, he said. Seeing such conditions, the company claims to be selective about the MSMEs that will be given loans.
KoinWorks will target potential segments during a pandemic. Although the demand for loans increased during the pandemic, the amount of disbursement was still low compared to before the pandemic.
Until November, new credit disbursements were around 30-40% compared to pre-pandemic. KoinWorks is noted to have distributed loans of Rp 2.5 trillion to more than 30 thousand MSME players per third quarter.
In addition, KoinWorks also made selective efforts to choose the MSME sector to provide funding to protect the risk of default. It is recorded that in the third quarter, the ratio of non-performing loans (NPL) was around 1-1.14% with a success rate of return (TKB90) of 97.09% or exceeding the industry average of 91%.
According to Koinworks Data, the Export-Import MSMEs are Starting to Recover
Koinworks has recorded a recovery trend for micro, small and medium enterprises (MSMEs) that are borrowers of funds or its platform borrower. Benedicto Haryono CEO & Co-founder KoinWorks revealed that previously negative sentiments due to the pandemic had occurred.
This sentiment also has a significant effect on the business development of SMEs in the KoinWorks portfolio or those who become KoinBisnis feature borrowers, especially MSMEs whose businesses rely on export and import activities.
Seeing the potential for economic recovery, KoinWorks is committed to continuing to support the business development of SMEs so that they can take advantage of existing opportunities by providing access to financing and innovation and other digital transaction solutions that are being developed by KoinWorks, explained Ben in his statement, Monday (16/11/2020).
KoinWorks also revealed the results of interviews with several borrowers in their portfolio who are SMEs whose businesses are engaged in export and import business activities. It is known that the current global economic development is expected to open up even greater opportunities for them to be able to market their products to more countries.
Credit for MSMEs is Classified as Smooth Despite the Pandemic
These SMEs themselves consist of several business sectors such as the contracting sector, palm oil trading, IT, electronics, FMCG trading, etc. This export-import activity has been affected by the pandemic, just like other SME sectors that have been hit.
Especially at the beginning of the spread of Covid-19 which caused foreign trade routes to be closed by many countries. The impact that was felt was evident from the decline in business transactions and turnover of up to 50 percent, he said.
However, through various support and mentoring programs that KoinWorks has implemented since the development of the Covid-19 pandemic in Indonesia in March 2020 to September 2020, it was noted that 88 percent of loans disbursed to various SME sectors in that period still had a smooth repayment status.