Indosurya Finance revamps website, targets SMEs

• Claims to be the first multi-finance company to provide loans for SMEs
• Works closely with four fintech startups as standby lenders

INDONESIA-based multi-finance company, Indosurya Finance (PT Indosurya Inti Finance) focuses on offering financing to Small and Medium Enterprises (SMEs).

The startup launched an SME financing solution through its website, https://indosurya.finance, with more informative navigation for users, especially the younger generation, who are seen as the driving force behind the economy.

With new designs and strategies to market financing products, incorporated with its concept of having an “online lending website,” Indosurya Finance becomes the first multi-finance company to enable SMEs to directly apply for a business capital loan without interfacing, in addition to making it easier for users to access the required information.

“The growth of technology, which keeps on expanding rapidly, encouraged us to start innovating. We also wanted to educate the public that multi-finance companies like us can be the best solution when applying for business loan financing. We want to create an awareness that this can occur through the implementation of technology-based service strategies,” said Indosurya Finance managing director Mulyadi Tjung.

The growth of SMEs driven by millennials is one reason for Indosurya Finance to offer the direct loan feature.

“The younger generation is starting to be the driving force of the economy in Indonesia, with creative business ideas and business models. We want to be a part of them because they are actively using technology, and with the latest website design, we wish to educate them to get a venture capital loan, in order to grow and advance their business,” says Mulyadi.

While the previous version of website only provided information about the company, the latest iteration provides working capital loans, home mortgages, multi-purpose loans, premium car financing, and medical equipment financing. The company is also developing a mobile app.

SMEs that have been operating for a minimum for two years are allowed to apply for loans, ranging from 40 million to 50 billion rupiah (US$2,880 to US$3.6 million) with repayment terms from three to five years.

Mulyadi says that his company had a non-performing-loan ratio of 1.3% as at April 2018, and targets to see a growth of 20% this year in loans for SMEs. And at March 2018, it had provided loans of approximately 490 billion rupiah (US$35.2 million).

In terms of competition, Mulyadi thinks that there is no multi-finance company that specifically provides loans for SMEs.

“We even work with four startups fintechs, Investree, Modalku, Mekar, and Amartha as standby lenders.”

He also says that the sources of funding for the loans are 40% from banks, 20% from capital banks, and the rest from internal funds.

“Our company is not fully depending on local banks, we have to find creative and diverse ways instead to keep our credit quality.”

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