SOLO, NNC – Small and Medium Enterprises (SME) have often faced difficulty in seeking funding to develop their businesses, particularly the SMEs owned by women.
Soelistyo Rudi Sanjaya, Digital Marketing officer at Bank Tabungan Pensiunan Nasional (IDX:BTPN), said the company owns a product named Jenius. The entire features of Jenius can be accessed from mobile phones, thus facilitating the acceleration for its users. The main feature is Card Centre to conduct transactions. The second feature is Smart Saver for savings, and Flexy Cash for obtaining loans.
"The application is offered to individuals and businesses, and will be launched on April. The aim of the application is to assist SMEs in developing and improving themselves," Rudi said during a discussion at the Enhancing Woman-Owned SME’s Access to Capital event hosted by the Canada-Indonesia Trade and Private Sector Assistance Project (TPSA) and the Indonesia Ministry of Trade, through the Directorate of Foreign Cooperation, on Wednesday (12/12).
Hanifah, Deputy of Capitals at the Indonesia Creative Economy Agency (Bekraf), said there were 16 sectors the agency focused on, in which one of the sectors is fashion. This sector is the second largest foreign exchange contributor after culinary. Bekraf had often addressed issues on [SME] education by conducting hundreds of events each year.
She continued that Bekraf had often assisted in the fashion sector, particularly on branding to improve products in the domestic and export markets. "What is the most important to remember is packaging, as its task is to gather SME businesses with investors," Hanifaf said.
Hanifah added that 92 percent of creative economy businesses still rely on their own capitals, while 24 percent have knowledge and access to banks. The remaining few have access to investors. To attract investors, the businesses need to go through selection, and have good production capacity. This should be the concern for exhibition participants, as well as export standards.
Jonathan Bryan from Koinworks said the media have an important role in informing the public that loans could be obtained from banks and fintech businesses. To improve the chances of obtaining loan, businesses should be already running for at least one year, disclose their working capital, improve the inventory, expand its manpower, and be able to set a PO financing.
“Businesses that have products but lack access to capitals can apply here. PO can also be used for funding disbursement. Once the product is sold, the business can obtain the loan, with a minimum loan of IDR10 million to IDR2 billion. However, this only applies for businesses that have already been running for one year," he said.
Jonathan added that fintech offers nine percent interest per year that is non-collateral. The loan can be conducted in tranches up to two years. "Everything is digital in terms of processing. Once the documents are completed, the application can be approved in two to three work days," he said
Meanwhile, Nuniek Tirta Sari from Angel Investor said the biggest mistake made by women who own SMEs are that they could not separate the finances for their private needs and their businesses. These businesses need to follow and apply good SOP practices. The businesses should also have an experienced mentor to provide consulting.
Angel Investor is an institution that provides capital lending. "Angel Investor does not requrie collateral, and do not provide interest If the business folds, it will be guaranteed by an investor."
Nuniek added that the business mentorship provides profit-sharing system. Angel Investor seeks to assist to develop an SME's business, provide connection and access, and assist in production. Angel Investor's funding is not as large as fintechs or banks, but the institution offers experience.
Ellen Nio from Patamar Capital said venture capitals support businesses can create social impact, particularly, SMEs. The venture companies that have already used Patamar Capital's services include Go-Jek and Tokopedia. "When a company's business develops, its valuation will also grow. Initial start up funding was also provided to Kaesang's business that is supported by venture capital.”
Samuel David Du Anyam is one of those who have successfully utilized the funding services. The nonprofit organization is concerned with women empowerment, culture promotion, and improving health and welfare.
“Rumah Anyam WuluBlooolong have branches in Papua and Flores, and is focused on woven palm leaves. We initially sought the social issues that could be addressed through business. The average revenues of women in the region only reached IDR225,000 per month," he said.
Samuel added that there is local wisdom from weaving palm leaves. The craft market is large, and has obtained significant government support. Weaving also links resources to markets, and women through economic security.