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Synergy Between Bank Andara, MEKAR Entrepreneur Network and NURBAYA Initiative in Developing the Financial Inclusion through SME Financing to Develop Indonesias Performance to Digital Based Technology

Thu December 19,2013

PT Bank Andara (Bank Andara) in collaboration with MEKAR Entrepreneur Network (MEKAR) and PT Nurbaya ARTHA PRATAMA (Nurbaya) announced the synergy to support and encourage the micro, small, and medium enterprises (SMEs) in utilizing the digital-based financing and trading in all over Indonesia. Having this facility will enable the SME entrepreneurs to expand their market share and coverage, reduce the operating costs and increase the sales volume.


This facility is developed and provided by NURBAYA, a company that provides ecosystem commerce that is designed for Indonesian SMEs. NURBAYA is enable the SMEs to sell the products online by integrating the experts’ assistance, stores, web traffic generation, payment gateway and delivery in a single cycle.


MEKAR role is to connect SME entrepreneurs with lenders both individual and institutional through MEKAR partners on digital platform namely MEKAR Exchange.


As a banking institution, Bank Andara has a technology-based financial service to enable the customers carry out the financial transactions without having to come directly to the Bank (branches), namely AndaraLink. On this MoU signing, the three parties intend to examine the opportunities for cooperation in forms of: (1). Provision of financing facilities to Micro Finance Institutions (MFIs), that become partner / in associate with MEKAR, which will be channeled to SMEs and the usage of AndaraLink as installment payments media for SMEs; (2). A partnership plan with Nurbaya in associate with the usage of AndaraLink to be integrated with the digital ecosystem-based trading for SMEs that become partner / in associate with MEKAR, and (3). Referral of Bank Andara’s debtors to MEKAR.


The synergy of those three institutions is formulized by the Memorandum of Understanding (MoU) signing by David H. L. Yong, Director of Bank Andara, Doseba Sinay, President Director of PT. Entrepreneurial Sampoerna (MEKAR) and Andi Sjarif, Founder Nurbaya Initiative and witnessed by Charles Nagy of MEKAR in Jakarta.


David Yong, Director of Bank Andara said, "We are excited and optimistic that this synergized work plan will strengthen the SME sector in Indonesia, given MEKAR and Nurbaya have access to SMEs network and entrepreneurs. This is in line with our vision and mission to develop the micro-economic sector in Indonesia in order to alleviate the poverty. The SME sector is one of our focuses even Bank Andara is not directly involved in financing the SME sector. Hopefully, through this cooperation can reach more micro-entrepreneurs in the various regions in Indonesia through our MFI partners. The main idea is to drive the economics’ growth in Indonesia."


In relates to this partnership, Doseba Sinay, President Director of PT. Sampoerna Wirausaha (MEKAR) said, "We believe that the synergy facilitates the process of digital-based finance and trade will improve the performance of SMEs entrepreneurs in Indonesia. By then, the achievement will support the efforts to create new job opportunities, women empowerment and poverty alleviation."


Meanwhile, "Nurbaya Initiative intends to open up digital market access to SMEs. The market that is estimated to reach US$ 10 billion by 2015 is only accessible by less than 1% of our SMEs. It's time for change!" said Andy Sjarif, founder of Nurbaya Initiative.


The SME sector is still an attractive sector to explore. As an illustration, based on data from the Ministry of Cooperatives and Small and Medium Enterprises (SME Kemkop) in 2012, the SME grows by 2.41% to 56.5 million units. The amount of labor absorbed by this sector reaches 107.6 million, or 5.83% increment. This amount reflects 97.16% of the productive age population in Indonesia.


In addition to the ability to overcome the unemployment, the SME sector has also greatly contributed to Indonesia Gross Domestic Product (GDP) or 56.7%.


Even it plays a major role in promoting the economic’s growth, the SME access to finance is still minimum. Currently, the great SME potential is not supported by adequate financing access. The business doer is considered does not meet the bank credit criteria or unbankable. It’s only 20% of Indonesian SMEs have access to finance, most of them are still rely on individual loan, even a loan shark.