Bank Mandiri Utilizes KoinWorks and Amartha System for SME Credit Distribution

Bank Mandiri is officially partnering with Amartha and KoinWorks for the use of borrowers profiling to receive SME's credit in order to avoid the potential NPL in the future. It's also Bank Mandiri's attempt to improve the performance of productive credit distribution.

Amartha and KoinWorks will refer SME partners suitable with Bank Mandiri's criteria. Amartha will be focused on giving recommendations from conventional SMEs while KoinWorks focused on online sellers.

Furthermore, Bank Mandiri will determine which SME partners can obtain the credit facility. The selection by Amartha and KoinWorks is expected to help Bank Mandiri to minimize NPL in the future.

Donsuwan Simatupang, Bank Mandiri's Retail Banking Director, said the synergy between conventional banking and fintech company is very strategic in giving payment access to all SMEs for the better development.

"Bank Mandiri will use the synergy with Amartha and KoinWorks to secure the payment penetration to the unreachable or unbanked enterprises due to business structure and cash flows which haven't meet the conventional bank standard," he said, Mon (8/27).

He added, by using both companies recommendation, they assure to reach a broader range of SMEs. It can also accommodate the limit of SME partners. As of July 2018, Bank Mandiri's productive micro-credit distribution has reached IDR 35 trillion while SME loans reached IDR 52 trillion.

Aria Widyanto, Amartha's Director, and Benedicto Haryono, KoinWorks Co-Founder & CEO, also participated in the occasion, said that Bank Mandiri could be an additional financing capacity for potential borrowers in the future SME segment.

"Bank Mandiri is expected to be the institutional investor which capable to expand seed funding for online SMEs rising in Indonesia's economy," Haryono added.

Both Amartha and KoinWorks have joined portfolio of Mandiri Capital Indonesia (MCI), Bank Mandiri's investment arm. KoinWorks recently announced IDR 230 billion Series A funding led by MCI. Amartha, on the other hand, has already received a Series A funding worth over IDR 40 billion which was also led by MCI last year.

– Original article is in Indonesian, translated by Kristin Siagian