JAKARTA (Suara Karya): Financial technology platform (fintech), Tokomodal is targeting venture capital funding for 15 thousand Micro, Small and Medium Enterprises (MSMEs). This is in line with the concept of peer-to-peer lending developed by the Financial Services Authority (OJK) for fintech.
"Currently there are around 10 thousand small-scale stalls, Alfamikro's fostered partners who also joined Tokomodal. It is targeted that their number will increase to 15 thousand by the end of 2019, "said Tokomodal Co-Founder and CEO, Chris Antonius in the 2019 Fintech Summit & Expo event in Jakarta, Tuesday (9/24/2019).
Explained, Tokomodal is a fintech provider of capital loans with a peer-to-peer system, which targets small-scale stalls included in the MSME category. That refers to the problem most often experienced by MSMEs, because capital constraints for spending occur opportunity loss.
"If you use conventional loans through banks, the process will take a long time. However, with a peer to peer lending system, we can meet the expectations of the stalls that can make two or three transactions a day. With a higher frequency, they have more inventory so that turnover will also rise, "he said.
He added, the stall that wanted to join Tokomodal, had to be an Alfamikro fostered partner and had used the loan facility with a cash on delivery model. If the two criteria are met, the new borrower can join by downloading the Tokomodal application on the Playstore.
"After being registered with Tokomodal, financial transactions are carried out digitally. The process has become easier, faster and the costs are lighter, "Chris said, referring to the loan funds given varying between Rp500 thousand to Rp2.5 million per person.
Chris explained, the loan was given only to Alfamikro's partners to ensure the safety of funds from investors. Because the funds used are not entirely owned by the company, but individual investors who invest their money in Tokomodal.
"There are 1,200 registered individual investors in Tokomodal. Many are interested in participating, because we offer quite competitive interest loans at 16 percent. Then we invested the funds in the stall again, "said Chris.
No less important, Tokomodal has obtained a permit from the Financial Services Authority (OJK). Because Chris is optimistic that his business will continue to grow. Evidently, from the 40,000 MSME assisted by Alfamikro, there were already around 10,000 MSME stalls in 100 cities, spread across 22 provinces, which received venture capital assistance.
"We are targeting all of Alfamikro's partners to become our partners in the future. But in 2019, the number of Tokomodal members will increase to 15 thousand stalls, "he said.
OJK's Director of Regulations, Licensing and Oversight, Hendrikus Passagi, expressed his appreciation for Tokomodal's performance. He said, the FSA never measured whether or not this funding platform. We only see how many have been helped.
"Because that is actually the essence of funding inclusiveness, namely the welfare of the people to realize social justice," he said.
He regretted that if there was a fintech that poured large funds, but the party whose funding was helped was very small. "There is one fintech that says the funds spent are almost Rp1 trillion, but for two business units. That is not in accordance with the concept of peer to peer lending. Even though the money is only Rp1 billion, but it is helped by up to hundreds of businesses, "he said.
Not only about the inclusiveness of business capital lending, Chris also highlighted the protection of personal data of investors and borrowers in Tokomodal. According to Chris, who is also the Deputy Chairperson for the Productive Sector of the Indonesian Joint Funding Fintech Association (AFPI), his party wants to educate the public to apply for loans through a platform registered with the OJK so that its security is guaranteed.
Plus, it can be known by protecting personal data on the platform, where the legal platform can only access the camera, microphone, and location, without requesting access to contacts or galleries on the user's smartphone.
"In my opinion, protecting personal data is an endless process. We are committed to innovating. The threat of increasingly sophisticated technology, we will fight, "said Chris stressed.
"Tokomodal development in participating in advancing MSMEs and financial inclusion with innovation”