Jakarta, October 29, 2021 – Education regarding official and trusted financial institutions continues to be echoed following the enactment of the latest Financial Services Authority Regulation (POJK) in 2021, namely the reassessment of the main parties of Financial Services Institutions (LJK) including fintech Peer to Peer Lending (P2P).
KoinWorks as a P2P Lending fintech registered and supervised by the OJK ensures that it goes hand in hand with the latest POJK to make the fintech industry healthier. OJK selects LJK with several requirements including aspects of integrity, financial feasibility, financial reputation, and/or competence so that the quality of financial services will be better. Of course, strengthening this regulation can strengthen the confidence of Indonesian SMEs and lenders in KoinWorks, which is also the first super financial app in Indonesia.
With this latest POJK, it will improve the quality of fintech, including KoinWorks which has distributed funding until the September 2021 quarter to more than 300 thousand SMEs in Indonesia and tripled compared to 2020. Most of these SME players are engaged in the fashion, food and beverage industry, automotive, and electronics. KoinWorks noted that currently 70% of SMEs are spread on the island of Java, and the rest on the islands of Sumatra, Bali, Kalimantan, and East Indonesia.
This is also an effort by KoinWorks to increase financial inclusion that is more evenly distributed throughout Indonesia. Currently, KoinWorks is preparing to launch a new product that will later become an ecosystem to assist access to finance in the development of businesses specifically for SMEs.
Jonathan Bryan, as Chief Marketing Officer of KoinWorks, said that the latest POJK will strengthen KoinWorks as a P2P Lending fintech and emphasize the importance of financial inclusion.
“We believe that the latest POJK that has been enacted is also in line with the objectives of financial inclusion and we feel more secure with this new regulation. Financial inclusion must continue to be improved to strengthen the national economy and the greatest appreciation for all parties who have worked together. Furthermore, KoinWorks also invites SME players to use the latest products that will become a special ecosystem for SMEs,” said Jonathan Bryan.
Until now, financial inclusion in Indonesia is at 81.4%, as stated in the Secretariat Report of the National Council for Inclusive Finance (S-DNKI) in 2020. This figure is targeted to increase to 90% by 2024. Inclusive finance not only helps borrowers who are still underbanked but also contributes to sustainable local and national economic growth. As a form of commitment to financial inclusion, KoinWorks attended the BIK virtual expo event held by OJK on 18 October – 2 November 2021 with the theme “Financial Inclusion for All, Awakening the Nation’s Economy”.
