Boost Indonesia Expands Trade Products Segment for Merchants

Digital financial platform Indonesian Boost (PT Axiata Digital Services Indonesia) is expanding cooperation with various companies to complete products that can be sold by consumers merchant. The latest collaboration with TaniHub to provide agricultural products that can be resold by merchant.

Not only that, according to the CEO of Axiata Digital Services Indonesia, Joseph Lumban Gaol, merchant Boost is now able to apply for credit facilities from the company fintech which has been picked up by the company. However, Joseph was reluctant to reveal the identity of the partner.

"For merchant Boost through the Seller Boost application we connect to Actioncalendar if you want to get a reverse payment facility. By filling out the application form and giving permission for the transaction history to be analyzed by Actioncalendar, so Actioncalendar instantaneously give credit approval and the allowed limit," explained Joseph to DailySocial, Thursday (15/10).

This credit limit can be used for the company's cooperation with TaniHub. In this deal, Boost connects merchantwith TaniHub via the Parent Market feature within the Seller Boost app. There merchant can order goods to TaniHub at wholesale prices.

If submission merchant approved, then Actioncalendar will pay for the purchase merchant to TaniHub. Then according to the agreed tenor, merchant will make payment to Actioncalendar through the Seller Boost application by filling in a BNI virtual account (Boost Balance) so that Boost will perform auto discharge from that account to Actioncalendar.

“This is in line with Boost's mission to empower MSME traders with digital business tools to access beg as well as financial service providers, then this collaboration is ideal.”

Separately, citing an official statement, CEO TaniHub Group Ivan Arie Sustiawan explained that the collaboration between the two companies will facilitate TaniHub's ambition to improve social welfare and economic equity. Also, expanding the access of TaniHub Group's farmer partners in the field of absorption of agricultural products, as well as access to mechant Boost to quality food ingredients.

TaniHub becomes a supplier of agricultural products and food products to merchant Boost which consists of small, micro, and medium enterprises. With supply support from TaniHub, merchant can offer food products and agricultural products through the Seller Boost application. It will be easier for the community to access and get quality food from Indonesian farmers.

Boost Indonesia Development

Since its establishment in October 2017, Boost Indonesia has embraced more than 550 thousand merchant and 200 thousand of them are merchant active alias have transacted through Boost.

Merchant These businesses are divided into three types of businesses, namely pulse traders, grocery, and culinary. Spread merchant it is still dominated around Java, with cities such as Denpasar, Surabaya, Malang, Mojokerto, Gresik, Yogyakarta, Solo, Surakarta, Semarang, Cirebon, Bandung, and Jabodetabek.

To boost transactions for TaniHub products, Joseph said that his party would conduct intensive education. It is targeted at least in the next six months to reach 100 thousand merchants who use this service.

Prior to its inauguration to the public, for the last two months Boost has started testing its service with TaniHub for merchant selected. The nominal transactions recorded are in the range of Rp. 250 thousand to Rp. 500 thousand per transaction. "Because we believe this service is very profitable and makes it easier for traders," concluded Joseph.

In its operations in Indonesia, Boost has three services targeting different user segments. In addition to Seller Boost, there is Boost Play which provides many payment transaction options for digital transactions with the concept of gamification; and Boost Preneur in the form of an agent in charge of acquiring merchant Boost, then guide for business merchant continues to grow.

These three applications were built to realize the company's mission, which is to open access to financial inclusion as much as possible in the micro segment which is a crucial supporter of Indonesia's economic pyramid. However, it is still not touched by adequate funding.