Modal Rakyat Has Distributed Financing to MSMEs worth IDR 1 Trillion
Modal Rakyat noted that they have channeled financing of more than IDR 1 trillion to more than 5,000 micro, small and medium enterprises (MSMEs) in Indonesia over the past three years. The distribution of financing can be achieved, among others, thanks to the support of the public who are increasingly active in funding MSMEs through Modal Rakyat.
In addition, collaborations and partnerships with banking institutions and business partners also have a positive impact. Several financial institutions that have become Institutional Funders in the fintech lending service provider are Bank Rakyat Indonesia (BRI), BRI Agro, Bank Mandiri, BPR Masyarakat Mandiri, and several other institutions.
“This achievement further confirms that the mutual assistance funding system can fill gaps in the financing industry. This is also an encouragement for us to be able to participate more in the financing market share,” said Hendoko, Chief Executive Officer (CEO) at Modal Rakyat.
Based on the financing sector, since its inception in 2018, as much as 49.07 percent of Modal Rakyat financing has been channeled to MSMEs in the Information Technology sector, 26.97 percent in trade, and the rest is spread in other sectors such as construction, logistics, micro (credit agents), textiles, agriculture, advertising, and others.
Modal Rakyat has succeeded in channeling loans worth IDR 85.8 billion throughout January 2021. Since its establishment in 2018 until now, Modal Rakyat has succeeded in channeling loans worth IDR 979 billion.
He stated that this year he would be very careful in channeling loans to the commodity sector. The loan disbursement target in 2021 could reach IDR 2 trillion. Meanwhile, total loans for the current year (January 1, 2021-present) reached IDR 201 billion.
Become a Lender Start from IDR 25,000
In an effort to invite the community to work together to finance MSMEs, donors (the community) can also fund starting from IDR 25,000 through applications on Android and IOS. This nominal value is expected to make it easier for all groups to get involved, especially those who already have an Identity Card (KTP).
So far, there have been 71,000 registered lenders in the Modal Rakyat since 2018. The majority of loans were disbursed to borrowers in DKI Jakarta, namely 62.8%. Outside the capital city only 31.1%.
As much as 51.9% of loans were disbursed to MSMEs, especially those that entered the digital ecosystem. The remaining 27.3% was in the food sector, 5.9% automotive, and 4.71% architects and construction.
“This is clear evidence that the use of technology appropriately and synergistically with market conditions can support the capital and empowerment of Indonesian MSMEs as a whole. In the medium and long term, we hope this will have a positive impact on Indonesia’s economic growth,” said Wafa Taftazani, President Commissioner in Modal Rakyat.
Strategic Partnership with Various Companies
In addition, Modal Rakyat has collaborated with several companies as strategic partners such as Payfazz, Rata.id, Huawei, Sequis, and Kargo. This partnership is an initiation to realize financial inclusion in Indonesia.
As a fintech lending startup, Modal Rakyat will also continue to strive to improve product quality and technology. In addition, the integration of the BNI Lender Fund Account (RDL) has also been implemented as a safe fund collection facility for lenders and a significant increase in access speed from the use of mobile applications.
Modal Rakyat has also collaborated with the credit bureau company Pefindo, including integration with the Fintech Data Center (FDC) and Silaras OJK to analyze the borrower’s financial reputation and suppress the occurrence of NPLs in accordance with OJK regulations in a mission to improve the quality of loans and secure funding. in Modal Rakyat.
“In the future, we hope that the Modal Rakyat can further expand the reach of the loan segment for productive MSME players, especially in the B2B FMCG segment and multipurpose loans through the paylater feature to support the financial inclusion of the archipelago,” concluded Christian Hanggra as Chief Technology Officer (CTO) of Modal Rakyat.