- A digital solution via app would greatly benefit scattered Indonesian farmers
- Modalku also launches supply chain financing product to empower Indonesian MSMEs
MODALKU and TaniHub, two Indonesian startups, have announced a partnership to support Indonesia’s agriculture sector.
Modalku and TaniHub will work together to disburse cash flow solutions for Indonesian farmers to develop their businesses.
Along with the announcement, Modalku has launched supply chain financing (SCF) on their platform. SCF is a cash flow solution that supports MSMEs by resolving their supplier’s invoice so they can focus on business operations.
Financial Services Authority (OJK) Regulation, Licensing and Supervision of Financial Technology director Dr Hendrikus Passagi welcomed the collaboration.
He stated that the partnership is aligned with National Financial Inclusion Strategies (SNKI), which put a focus on farmers, fishermen, craftsmen, and MSMEs.
He added that the collaboration will strengthen the digital economy ecosystem in Indonesia, which has great potential to be an inclusive financing model on a global scale, yet based on national Pancasila values.
Modalku co-founder and COO Iwan Kurniawan says, “Historically, Indonesia is known to be strong in agriculture. According to data from the Ministry of Agriculture, the sector contributed 13.45% to Indonesia’s Gross Domestic Product (GDP) in 2016. Meanwhile, the Central Bureau of Statistics (BPS) stated that in February 2017, the agricultural sector employed around 39.68 million Indonesian citizens or 31.68% of the working age population, making agriculture the field that employs most of Indonesia’s workforce.
“The Indonesian government have also been supportive of the industry. The Financial Services Authority (OJK), for example, has launched the Food AKSI programme to accelerate financial inclusion and national food sovereignty.”
Modalku is a peer-to-peer (P2P) lending platform, which connects MSME borrowers with lenders through a digital marketplace. By financing MSME loans, registered lenders gain an alternative investment with attractive, higher returns. Meanwhile, MSME borrowers receive working capital loans without collateral through a fast and simple online process.
Modalku is currently the largest P2P lending platform in Indonesia and Southeast Asia, with loan disbursement of around 250 billion rupiah to 450 MSME loans in Indonesia.
Through TaniHub’s agricultural marketplace platform, farmers can directly connect with buyers and business owners, both domestic and international. TaniHub’s presence aims to simplify the distribution chain of agricultural, fishery, and farming products, thus minimising the price gap between farmers and fishermen with buyers.
TaniHub’s digital application was inaugurated by President Jokowi in April 2016 to support Indonesian agriculture.
TaniHub co-founder and CEO Ivan Arie Sustiawan says, “Modalku’s presence and support have been valuable for our efforts to develop digital agribusiness, whether in the domestic market or for exports. We hope the synergy between TaniHub and Modalku will continue to advance the agriculture sector and enhance the welfare of Indonesian farmers.”
“To celebrate Indonesia’s 72 years of independence, and in the middle of supportive government policy, Modalku and TaniHub are working together to provide cash flow solutions for farmers. They will help local farmers to further develop their businesses. In addition, a digital solution via app would benefit Indonesian farmers.
“No longer do they need to rely on middlemen to market their products. On a macro perspective, empowering Indonesian farmers will strengthen the national economy. A strong agricultural sector will make the Indonesian economy stronger,” added Iwan.
“I am delighted that TaniHub is collaborating with the largest P2P lending fintech platform in Indonesia. Modalku’s advanced technology and fast processing are pivotal elements in supporting the financial transactions of TaniHub farmers, especially to farmers in remote areas.
“I truly hope TaniHub and Modalku’s collaboration can continue to support the development of agriculture, fisheries, and livestock in Indonesia, all of which are still currently underserved,” says TahiHub co-founder and chairman Pamitra Wineka.
Modalku launches mobile app for lenders
Modalku launches Merchant Cash Advance for underbanked MSMEs
Funding Societies to launch P2P platform in Malaysia 1H 2017
For more technology news and the latest updates, follow us on Facebook,Twitter or LinkedIn.