Dilemma For Indonesian Smes: Short Of The Fund, Excluded From The Market

If you have a small business in Indonesia, you surely understand how difficult it is to borrow money when you want to develop your business. In general some banks are reluctant to lend to the SMEs as they argue that micro-enterprises are not so profitable. Sometimes few banks are willing to lend but generally the process is really complex and time-consuming, while you need the funds in the near future.

The difficulty in getting a loan represents the major obstacle for most SMEs owners in Indonesia who currently want to expand their businesses, so most of them are finally “knocked out”.

In fact, the SMEs have created more than 100 million jobs in Indonesia. Even the World Bank said that there are nearly 60 million SMEs in Indonesia, but about 55.8 million of them have no access to the bank.

The SMEs are generally developed and managed as an alternative to the current difficulty of finding a job. SMEs also frequently become an alternative to reduce unemployment in our community.

This issue constitutes a noticeable stumbling block for the actors of our economy. In addition, the lack of knowledge and access to the banking further reduce their chances to develop the business.

Modern Financing Solution to Grow the Indonesian SMEs

However, now there is the right solution for the actors of this economy. Peer to peer (P2P) financing which is currently introduced in the form of financial technology or FinTtech brings new hope by providing a straightforward financial access for SMEs in Indonesia. One of the fintech companies that actively provides financing for SMEs Indonesia is Mekar, which has an official name as the PT Sampoerna Wirausaha.

Since 2010, the Mekar has launched a peer-to-peer lending platform for the actors of Indonesian SMEs. This is an initiative from Putra Sampoerna to develop small businesses in Indonesia.

Mekar has been fostering and providing capital to 766 SME entrepreneurs throughout the Jabodetabek areas. Since the end of December 2015 through August 2016, the amount of outstanding loans reached Rp 39 billion.

As the Fintech company with the lending platform, the Mekar must comply with the laws of the republic Indonesia, precisely the provisions of the Financial Services Authority (FSA) No. 77/POJK.01/2016 which issued regulation concerning the Fintech lending. One thing which distinguishes the Mekar from other fintech companies is that the Mekar specifically offers the financing for businesses in Indonesia that produce and sell Indonesian products from farmers, local manufacturers, and businesses that can give positive impacts for children, women and the elderly, as well as businesses engaged in the production of food, education, health and recycling of waste.

After having participated in the capital support and coaching program from the Mekar, some SME entrepreneurs also regularly take advantage of the banking technologies such as mobile banking, ATM, Virtual Account, internet banking in repaying capital and doing transactions with suppliers and their customers. Thus, indirectly, this activity slowly involves many businessmen who have never used banking service.

Thus, what the new financing method could be a solution for your business? Just visit Mekar’s website to read their success stories that have been supported by the Mekar.