After BRI, it's BRI Agro's Turn to Enter as "Institutional Lender" in People's Capital

After BRI, now BRI Agro is in the ranks of Actioncalendar institutions in People's Capital with an initial commitment of Rp50 billion in financing. For BRI Agro, this strategic step is a way to diversify financing to support SMEs from various business sectors.

President Director of BRI Agro, Ebeneser Girsang, explained that the initiatives that the company has carried out this year have shown positive results. Therefore, it will continue to expand its reach by several fintech others, including People's Capital.

"In line with the company's strategy to cooperate with third parties in order to cross selling BRI Agro products, so we choose fintech/p2p lending to develop the business while we prepare a new business model to become a digital attacker in accordance with the aspirations of the BRI Group," he said in an official statement, yesterday (5/11).

Modal Rakyat CEO Hendoko Kwik added that BRI Agro's support made them more stable and confident in their business model as an aggregator of working capital for SMEs in need.

"Together with the support of banks as financial institutions that are more mature, the dream of Modal Rakyat will help realize financial inclusion in Indonesia, which will be achieved more quickly," he said.

The financing provided by BRI Agro will be directed to finance SMEs registered in the People's Capital with a maximum value of IDR 2 billion per loan. The business sector is not limited to being channeled to agriculture, but also to other sectors such as logistics, construction, health, and technology.

Since its establishment in 2018, Modal Rakyat has distributed financing of more than Rp. 640 billion to more than 20 thousand SMEs throughout Indonesia. The sectors with the largest financing came from IT (47%) and trade (29%).

This financing is carried out in mutual cooperation, combining funders from individuals and institutions. To date, there are more than 45 thousand individual lenders and nine institutional lenders in the People's Capital.

Part of the synergy

The entry of BRI and BRI Agro, is actually a continuation of the investment results made by BRI Ventures to Payfazz some time ago. Confirmed by BRI Ventures, the CVC unit only enters holding Fazz Financial. So that the partnership under it is run under holding.

Fazz Financial is a company holding which oversees Payfazz and other companies, including Modal Rakyat, considering that each leader crosses over to become a commissioner.

Payfazz, fronted by Hendra Kwik, also serves as commissioner at Modal Rakyat, a company led by His brother Hendoko Kwik. Hendoko is also a commissioner at Verihubs, an e-KYC startup.

Even Payfazz also now has his own portfolio which he invests himself for a debt recording startup Creditbook at the beginning of this year.