eFishery Obtains 250 Billion Rupiah Credit from Bank OCBC NISP

Bank OCBC NISP disbursed a bilateral loan worth 250 billion Rupiah to PT Multidaya Teknologi Nusantara (eFishery). This is a continuation of cooperation after providing financing to eFishery cultivators through the KTA Cazhbiz OCBC NISP program, which was channeled through the Kabayan eFishery service, last year.

When contacted DailySocial.id, Co-Founder and CEO of eFishey Gibran Huzaifah confirmed the loan took shape debt financing. Through debt financing, the company is only obliged to pay off the following debt with interest so that the percentage of share ownership in the company does not decrease one bit, unlike equity financing commonplace in the startup world.

eFishery will use the loan funds to finance working capital needs to support domestic sales growth and increase exports.

"This financing collaboration aims to support eFishery to innovate in a sustainable manner. It is hoped that Bank OCBC NISP and eFishery can jointly support national food security through the establishment of an integrated and sustainable aquaculture ecosystem," explained Director of Bank OCBC NISP Emilya Tjahjadi in a press statement, Tuesday (7/2).

eFishery builds an ecosystem where fish and shrimp farmers can easily increase productivity, while creating a more sustainable, safe and fair environment.

Gibran said that his party believed that fish and shrimp farming activities would be a solution in increasing fishery production as a food source, which is also the main source of animal protein which is not only rich in nutrients but also accessible to all groups.

"With the injection of funds from Bank OCBC NISP, we are increasingly optimistic to grow and develop together to build an aquaculture ecosystem and contribute significantly to national food security, which will ultimately have a positive impact on fish and shrimp farmers," he said.

Background banks are interested in providing this loan facility in order to support new economy, an economic concept that describes an aspect or sector of the economy that produces or uses innovative technology intensively to be a significant supporting factor. This concept is implemented by eFishery which focuses on the aquaculture sector.

According to the Global Food Security Index (GFSI), Indonesia's food security has increased from a score of 59,2 in 2021 to 60,2 in 2022. The aquaculture sector also contributes to this, considering that Indonesia is currently the world's second largest aquaculture producer by volume. production of 14,8 million tonnes, and based on predictions by the Food and Agriculture Organization (FAO), Indonesian aquaculture will grow by 26% in 2030.

Loans from banks

For the record this is the second loan that eFishery has received. First obtained from Bank DBS Indonesia in October 2022. The nominal loan is IDR 500 billion in the form of a short-term loan (loan).

At that time, Gibran conveyed eFishery's consideration of taking loan funds from banks rather than raising funds from venture capital. The reason, if the funds from the bank are calculated for the long term, including low-cost funds. When taking equity, there are valuable shares that must be released from the company for investors. Which, if the company grows by increasing, to return to buy these shares at a later date, the price issued is more expensive than when it was first released.

On the contrary, when calculating from bank loans, the costs are actually cheaper because you only look at the interest that must be paid. Moreover, being able to get a loan from a bank proves that now eFishery, as an aquatech startup, is in a successful position to be assessed bankable by banks. For him, currently eFishery is in a phase that requires not only VCs, but also other financial institutions that can support businesses to grow faster.

Gibran also wants eFishery to become tycoon companies that are now leaders in the industry, which initially relied on financial institutions in developing their business.

"Now we are at a point mature, large business scale, visible profit, more risk mature, so that we can grow revenue in that market predictable for us. This is also proof as a company that is considered mature."