Lumbung Dana Prepares IDR 10 Trillion Credit for West Java MSMEs

PT Lumbung Dana Indonesia (LDI), a peer-to-peer (P2P) lending fintech company and the Regional Owned Enterprises of the West Java Provincial Government through PT Jasa Sarana signed the head of agreement (HoA) worth IDR 10 trillion to finance the construction of customer gas networks UMKM and retail in West Java (Jabar).

This cooperation aims to accelerate and provide access to capital, as well as financing to advance MSMEs for economic development in West Java. This signing was carried out on the sidelines of the “JABAR Investment Summit” which was held on November 16-17, 2020.

According to the Investment Director of PT Jasa Sarana Indrawan Sumantri, that following HoA, PT Jasa Sarana and Lumbung Dana agreed to initiate business cooperation on the business potential of each party.

Collaboration with Lumbung Dana is a Win-Win Solution

There is also an initial step in implementing the HoA, namely the signing of a cooperation agreement between Lumbung Dana and PT Jabar Energy, which is a subsidiary of PT Jasa Sarana. Indrawan said that the cooperation with Lumbung Dana was a win-win solution. The reason is, the distribution of natural gas by Jabar Energy by building a gas network to housing, so far uses APBD funds.

“It is time for the dependence on the APBD to be reduced by involving a third party as an alternative financing, and prospective customers become independent by making their own financing for the connection costs of the gas network,” he said in a press release, Monday (16/11).

For information, PT Jabar Energy (Jabar Energy) is an Indonesian company engaged in the energy, oil and gas sector. Currently, Jabar Energy is distributing and installing natural gas pipelines in the Depok area, West Java.

PT Jasa Sarana itself is targeting Jabar Energy to distribute natural gas to West Java MSMEs and retail with a target of 1,000,000 customers with a licensing process from the authorities in stages.

In order to achieve this target and provide access to and alternative financing for MSMEs and retail as well as prospective customers, Jabar Energy collaborates with the Granary Fund which provides access to financing the installation of the gas network.

“The natural gas pipeline installation with a target of 1,000,000 subscribers is expected to be achieved within 5 years,” said Indrawan. Meanwhile, the Managing Director of Fintech Lumbung Dana Yoga Mahesa appreciated the cooperation that has been established.

The Cooperation will Provide Benefits for Many Parties

He believes this collaboration will provide great benefits for many parties and society for progress, as well as the development of MSMEs and retail in the West Java region.

“With the availability of access to capital financing, the gas network connection can be realized immediately for MSME and retail players in West Java, and can stimulate the economy of West Java. The target of access to financing of IDR 10 trillion for 1 million customers is certainly an honorable mandate for the Granary Fund to contribute to Indonesia’s economic development,” he said.

Yoga also expressed his appreciation for the trust of the public and government that has provided space and opportunity for actors or operators of the P2P lending platform to participate in accelerating the quality of capital financing for Indonesian MSMEs.

“The fintech industry in Indonesia will continue to contribute positively to Indonesia’s economic development, and hope that in the future there will be more space and opportunities provided to P2P platform operators in providing access to capital for MSMEs in Indonesia,” he added.

Meanwhile, the Founder and President Commissioner of Lumbung Dana Indonesia, Rico Rustombi, revealed that the development of funding distribution for MSME and retail business capital needs from fintech P2P continues to increase, and has a positive contribution to the development of the national economy.