Asetku Distributes IDR 18 Trillion to MSMEs during the Pandemic

During the Covid-19 pandemic like today, many micro, small and medium enterprises (MSMEs) in Indonesia are helped by the presence of startup companies engaged in financial technology (fintech). One of them is the local startup Asetku, which claims to have channeled funds of up to IDR 18 trillion to MSMEs in 2020.

Asetku Director, Andrisyah Tauladan, said that even though in the midst of a pandemic, the adjustment of the scheme was tighter, the company could survive and even increase in terms of users and distribution of funds.

“There is an increase in new users of up to 81 percent for lenders and 67 percent for borrowers. The main thing is the success rate of paying on the 90th day (TKB90) remains at 100 percent,” said Andrisyah through his statement, Saturday (6/2/2021).

He said that the contribution of Asetku’s lending in 2020 reached 24 percent of the total national loan distribution and is optimistic that it can increase in 2021 with the new strategies that will be implemented.

“We are optimistic that we can distribute Rp. 18 trillion in funds by 2021. This target is 20 percent higher than last year’s target,” said Andrisyah.

Collaborate with E-commerce to Expand the Market

Jimmi Adhe Kharisma, Commissioner of Asetku, added that this year the company will pursue plans that were delayed in 2020. “Among other things, working with financial services and e-commerce institutions for borrower diversification programs so that their profiles become more diverse,” he continued.

Geographical expansion of users will also be encouraged again accompanied by online educational activities and other marketing strategies. This is an effort to improve digital financial literacy, especially in areas outside Java.

Even so, this peer to peer lending service, which is registered and supervised by OJK, will continue to tighten the risk mitigation scheme and procedures in 2021. Last year’s risk mitigation measures will be evaluated and improved again this year.

“We will continue to tighten the selection of prospective borrowers and cooperation with insurance will also continue. In addition, Asetku will also improve legal infrastructure and compliance in order to meet applicable regulations in the future,” concluded Jimmi.

OJK and the Fintech Association to Counteract the Potential of Fintech Lending Oligopoly

The Financial Services Authority (OJK) sees that the domestic financial technology market for financing or fintech lending is only controlled by a handful of companies. To prevent the potential for oligopoly, OJK and the fintech lending association are preparing regulations.

Based on the OJK monthly report as of last October, the accumulated amount of loan disbursement from fintech lenders in Indonesia reached IDR 137.65 trillion. However, fintech lending which optimally contributes to the total distribution has only reached 20%. This means that the distribution market share is dominated by big players.

The OJK data is strengthened by research conducted by DSResearch and the Indonesian Joint Funding Fintech Association (AFPI) which states that only 4.9% of companies disburse loans exceeding IDR 3 trillion. They are Kredivo, Pendanaan.com, Uangme, Kredit Pintar, Asetku, Investree, and Modalku.

The majority of fintech disbursed under IDR 3 trillion, with 48.6% disbursing loans below IDR 50 billion. From year to year, the number of fintech lending operators is always increasing. In 2018, only 53 fintech lenders were registered with the OJK.

Now, OJK records that 146 fintech are domiciled in Jakarta, Bogor, Depok, Tangerang and Bekasi, the rest are in Yogyakarta, Surabaya, Bandung, Makassar, and Bali. Researcher at the Institute for Development of Economics and Finance (INDEF), Bhima Yudhistira, said that the number of 20% of fintech lenders that control lending is not too early to be concluded as an oligopoly.