In 2016, Sinarmas Bank wants to dump US$162.8 million worth of funds into supporting Indonesia’s SME sector
The aim of the agreement is to empower Indonesian small and medium entrepreneurship (SMEs). Sinarmas Bank will act as Modalku’s escrow agency in managing and monitoring all funds flowing through the company.
Modalku also claimed to be the first P2P lending platform that uses of an escrow agency to provide transparency in lending and borrowing.
“The escrow account will provide lenders with greater confidence in engaging with us as a peer-to-peer lender, as it ensures that the flow of funds will be conducted the most transparent manner,” said Modalku’s COO Iwan Kurniawan in a statement.
Apart from Sinarmas Bank, Modalku has also partnered with Indonesia’s Financial Service Authority (OJK). The startup also has former Minister of Finance Chatib Basri as its advisor.
Sinarmas Bank stated that the partnership is in-line with the company’s vision to develop SMEs in Indonesia. In 2016, the bank plans to distribute IDR2.2 trillion (US$162.8 million) of funds to SMEs.
“Indonesian economy could grow to be among the world’s top 10 largest by 2025 if more investments are placed in manufacturing, infrastructure development, and urbanisation. We want to be part of that solution as a leader of digital financial initiatives and cement our continuous support for Indonesian SMEs,” said Freenyan Liwang.
Image Credit: Aaron Burden on Unsplash.com
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