IFC Pours 451 Billion Rupiah into AnterAja’s Parent Company

PT Adi Sarana Armada (IDX: ASSA), or logistics platform AnterAja’s parent company, received funding from the International Finance Corporation (IFC). The value is at $31 million or around 451 billion Rupiah. Previously, that consortium under the World Bank also invested in insurtech startup PasarPolis earlier this year.

The investment is obtained through the purchase of convertible bonds, it is debt securities that can be exchanged into shares at an agreed ratio. In this case, the bonds will be listed on the capital market for two years without interest — through a rights issue by ASSA.

One of the company’s post-funding main focus is to improve its logistics business and transportation network connectivity. AnterAja was particularly mentioned, as its development is expected to provide benefits for MSMEs amidst the rapid growth of the e-commerce business in Indonesia.

AnterAja was introduced by ASSA Rent in February 2019, as a business unit in the last mile logistics sector. The business unit alone has been established since August 2018 in a joint venture with logistics services from China SF Express and PT Spirit Bambu Runcing which shares are owned by William Tanuwijaya.

Then, it was stated that ASSA became the majority shareholder of 55%, SF Express 20%, and Spirit of Bambu Runcing 25%.

Focusing on serving the e-commerce sector, AnterAja has several logistics options, from same day delivery, next day delivery, and regular. It is said they already have around 15 thousand couriers and are able to send around 700 thousand packages per day.

ASSA alone is part of the Triputra Group conglomerate. It also oversees 10 companies related to rental of automotive assets and logistics. Apart from AnterAja, businesses that are close to digital are car rental platform ASSA Mobility (ShareFleet for B2B and ShareCar for B2C) and car marketplace Caroline.

Moreover, Triputra Group also involved in Waresix’ pre-series A funding in 2018. The company also invested in Kedai Sayur the following year. The rounds for the two startups were led by East Ventures.

Logistics investment

With the same hypothesis, investors are flocking added logistics business to their portfolios. The flow of funding for this startup has also increased consistently from year to year – including in the midst of economic uncertainty due to the pandemic.

From 2019 to the first half of 2021, there have been 16 funding rounds involving startups in the logistics sector. Of the 13 rounds of information citing their value, thetotal equity investment valued at $455 million. The trend is increasing in terms of funding quality from year to year.

Logistic startup investment trend for the last 3 years / DailySocial

The types of logistics services provided are quite diverse, from first mile, last mile, fleet management, aggregator, and others. Some players are focus on shipping at a certain level, for example covering import-export needs by providing access to a fleet of ships or aircraft cargo.

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Original article is in Indonesian, translated by Kristin Siagian

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East Ventures Reportedly Leads Moladin’s Series A Funding

The automotive marketplace startup Moladin reportedly secured series A funding led by the previous investors, East Ventures. According to DailySocial’s source, this round’s nominal combined with the previous one has reached $4.5 million (approximately 65 billion Rupiah). The last round was announced in January 2020.

DailySocial tried to confirm with related parties, however, there is no feedback until this news was published.

In the latest round, participate also the previous round’s investor, CyberAgent Capital, also some angel investors from Singapore entered the ranks of shareholders.

Moladin is led by Jovin Hoon and Mario Tanamas since November 2017. In the beginning, the platform focused on selling new motorcycles, and recently expanding its services to used motorcycles and new cars. The company works closely with dealers and leasing agencies to facilitate the purchasing process. The dealership locations are available across Greater Jakarta, Bandung, Solo, Yogyakarta and Semarang.

The company also provides cash fund services for consumers, in partnership with leasing companies, for loans starting from Rp3 million with a motorcycle’s license collateral from 2012, and up to Rp20 million with a car’s license issued from 2004.

“Since 2018, Moladin has managed to proceed transactions over IDR 290 billion. We also have 8 thousand Moladin agents work across major cities to help increase sales,” Jovin said as quoted from Kompas.com.

Automotive Industry

The year 2020 is a challenging period for many sectors, including the automotive industry. This is reflected in data released by the Association of Indonesian Automotive Industries (Gaikindo), wholesale car sales (sales from factories to dealers) decreased by 48.35% YOY, while retail car sales decreased by 44.55%.

Furthermore, conditions began to improve this year, marked by total national car sales rising 33.5% to 393,469 units in the first semester of 2021. Same condition applies in motorcycle sales. Quoting from the Indonesian Motorcycle Industry Association (AISI), more than 2.45 million units of motorcycles were shipped to the market.

Compared to the same period in the previous year, motorcycle sales were only 1.88 million units. Motorcycle sales contributors came from automatic scooters (86.61%), motorbikes (6.95%), and sport motorbikes (6.24%).

In terms of startup, this automotive marketplace vertical involved many players. Those are OLX Autos, Carro, Carsome, Garasi.id, Otoasia, Mobil123, Carmudi, Rajamobil, Oto.com, and many more.

Vehicle marketplace ecosystem / MomentumWorks

In the (C2B) purchasing and (B2C) selling used cars segment, Carro competes directly with Carsome — both are regional players who also have business bases in Indonesia and a number of countries.

The business model is quite similar, for C2B they buy consumer cars instantly by conducting thorough inspections. The company provides checkpoints at strategic locations — purchase requests can be made via the website. The cars purchased are then sold to car dealer owners for re-marketing.

As for the B2C model, the cars that were successfully purchased and inspected were re-sold through their digital platform. The value proposition lies in the result of inspection, considering that the goods being sold are used. They also work with financial institutions to peddle credit schemes.

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Original article is in Indonesian, translated by Kristin Siagian

HappyFresh Secures 940 Billion Rupiah Series D Funding, Valuation Exceeds 2.8 Trillion Rupiah

The online grocery marketplace, HappyFresh secures a series D funding worth of $65 million or equivalent to 940 billion Rupiah. The round was led by Naver Financial Corporation and Gafina B.V. Participated also some investors, including Mirae Asset-Naver Asia Growth Fund and Z Venture Capital.

Previously, HappyFresh announced a series C funding in April 2019 worth of $20 million. Based on DailySocial’s calculations, all the closed rounds has brought the company’s valuation to $200 million.

Regarding the focus of this funding, HappyFresh’s CEO, Guillem Segarra said that his team is working hard to improve the company’s operations in various markets and maintain the company’s quality and safety standards. “We are still at the beginning of the journey and with all the support received, are very excited for the adventures ahead,” he said.

In a previous discussion with DailySocial, HappyFresh Managing Director, Filippo Candrini has revealed that the company’s current focus is to improve the user experience in online grocery shopping using a personal shopper approach. In addition, his team will also continue to carry out local expansion to tier 2 and 3 cities in Indonesia.

“We did not intend to be a super app, but we want to be a super in grocery app for our customers and partners,” Candrini added.

Debuting in Indonesia since 2015, HappyFresh has expanded its business to Malaysia and Thailand. The company claims to have experienced 10 to 20 times traffic growth. In the local market, this service is also available in 11 cities throughout Indonesia, including Greater Jakarta, Bandung, Surabaya, Malang, Semarang, Makassar, and Bali.

The e-grocery industry is said to be growing rapidly throughout Asia, especially Southeast Asia. The retail market for this industry is reported to have reached $350 billion supported by rapid adoption and fundamental changes in consumer behavior.

“We are seeing major changes in customer behavior; Retention rates and frequency have increased significantly while overall basket size has grown consistently. We attribute this to a major shift in wallet share from offline to online, which will remain,” Guillem said.

Indonesian market still dominated by offline

Despite the increasing penetration of online shopping, the offline market still dominates the online grocery industry in Indonesia. A research from L.E.K Consulting on the online grocery industry revealed that 82% of total food sales are still dominated by traditional markets.

This is in contrast to what happened in China and South Korea where the offline market only accounted for 30% and 19% of total grocery sales in 2019.

However, along with the increasing availability of services in various regions and people who are well educated from popular consumer applications, it is not impossible that the statistics of e-grocery will increase exponentially in the future.

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Original article is in Indonesian, translated by Kristin Siagian

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PermataBank Introduces Trade Finance Service with Blockchain Technology

PT Bank Permata Tbk (PermataBank) officially introduced a trade finance services using blockchain technology. It is said that PermataBank is the first bank to serve trade finance transactions using blockchain technology in Indonesia.

In order to deliver blockchain, PermataBank is collaborating with Contour Network, which is a technology network provider company for global trade finance. In Southeast Asia, some banks have been using Contour technology, including HSBC, Standard Chartered Bank, and Bangkok Bank.

Trade finance is a financing facility for domestic and international trade transactions. The use of blockchain allows data transactions to be carried out in a decentralized system in real-time with the concept of a distributed ledger.

PermataBank’s Wholesale Banking Director, Darwin Wibowo said, the blockchain adoption is PermataBank’s step to answer customer needs through digitizing its various services and navigating the national payment system with technology.

Moreover, he thought the trade finance transactions are very conventional that they are less efficient and often take a long time. The process got even more complicated when the Covid-19 pandemic occurred. Social and activity restrictions have an impact on delays in transaction procedures.

He said, blockchain implementation will facilitate global trade transactions to the issue of the letters of credit (L/C). With its advantages, blockchain is considered capable of saving transaction time, minimizing the risk of fraud, and simplifying complex processes that have been a major challenge in trade finance transactions.

“Also, blockchain technology will expand PermataBank’s service range. Trade finance customers can also make transactions without having to come to PermataBank branch offices,” Darwin said.

Meanwhile, Contour’s CEO, Carl Wegner added that global trade plays an important role in the Indonesian economy. However, manual trade finance transactions have hampered trade growth. Therefore, Contour’s involvement in the trade finance facility at PermataBank is expected to open access to communities around the world.

Transformative technology for commerce

Based on the 2020 Global Trade Survey report released by the International Chamber of Commerce, trade and finance activities in the world are on the verge of uncertainty due to Covid-19.

Based on the survey results of 346 banks from 85 countries in the world, respondents expressed their concern about the decline in the growth of trade finance transactions. However, respondents think that the lockdown and WFH activities have actually accelerated the transition of trade to digital platforms, one of which is through blockchain technology.

2020 Global Trade Survey / International Chamber of Commerce

As many as 54% of respondents said transformative technology is its priority area of development and strategic focus in the short term as companies want to ensure future growth. According to respondents, digital technology can spur greater transformation opportunities in the global financial industry, which is still synonymous with paper-based manual processes.

In her writing, R3’s Head of Trade and Supply Chain, Alisa DiCaprio said that trade finance activities are among the most difficult to modernize. The reason is, the transaction still involves many paper-based manual processes which are considered no longer suitable in the digital era. According to Asian Development Bank (ADB) data, nearly $1.5 trillion of trade finance applications were rejected because of inefficiencies.

She observes that blockchain is having tangible results in reducing costs, risks, and potential delays for parties involved in trade finance transactions. With effective implementation, blockchain could potentially unlock $1.5 trillion in global trade finance.

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Original article is in Indonesian, translated by Kristin Siagian

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Bonza Reportedly Receiving Additional Investment from Future Shape

DailySocial recently informed that one of the East Ventures portfolios, big data analysis startup Bonza, has received an additional investment worth of $500 thousand (over 7.2 billion Rupiah) from Future Shape. There has been no official statement until this news published.

Future Shape is a French based VC that invests in engineers and scientists developing deep technology. They participated in Finantier’s seed funding last month, which is also one of East Ventures’ portfolios.

Previously, East Ventures led Bonza’s $2 million seed funding round with Elev8.vc in May 2021. East Ventures was also an early investor in the startup, which was started last year by Elsa Chandra and Philip Thomas.

In the announcement of company’s last round, Bonza’s CEO, Elsa said that the fresh money is expected to accelerate the company’s vision to become a leading data company in Southeast Asia. The company is developing a platform to support companies to better process data and use AI solutions through a no-code platform (does not require coding).

Value proposition

The no-code approach developed by Bonza will enable technical and non-technical teams to build and deploy big data-driven solutions.

Elsa said, the distinction is that its platform removes the frictions and barriers faced by organization when creating and deploying data-driven solutions for the first time. Organizations can integrate multiple data sources within the organization, then build and deploy machine learning models in a responsive user interface.

Bonza’s platform workflow illustration / Bonza

Users can automate long-winded data integration to generate report, reducing implementation time of AI solutions from months to days. The implementation includes helping fintech service owners build real-time fraud detection machines and monitoring tools for fraud operations teams to gain insights from different places and unstructured data sources, in order to reduce fraud.

Big data potential

The market share for big data services has a tendency to grow from year to year, not least in the Asia Pacific region. In 2020, its market size is projected to reach $138.9 billion and will increase to $229.4 billion in 2025.

The main factor for this market’s growth is the availability of abundant [digital] data in organizations. Through the digital transformation program launched, business people always try to be more competitive in formulating strategies. One approach is to convert this data into useful insights. Through big data analysis, a business can also improve operational efficiency.

Today’s big data tools have the capability to process structured and unstructured data from a variety of sources, such as logs in apps, social media, service forms, and even from third-party data sources.

Most service providers provide a cloud-based platform, in the form of SaaS that can be subscribed according to the certain specifications. With specific solutions similar to Bonza continue to emerge, service fulfillment in the global market is still dominated by technology giants such as Microsoft, Teradata, IBM, Oracle, Google, Cloudera, Salesforce, to SAP.

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Original article is in Indonesian, translated by Kristin Siagian
Gambar Header: Depositphotos.com

Ribbit Capital Reportedly Led Series A Funding for Pihhome

Pinhome proptech startup reportedly received a series A funding worth of $25.5 million or equivalent to 369.3 billion Rupiah. We received the information that Ribbit Capital led this round. It is also its second investment in Indonesia after previously leading the series A funding of Ajaib platform.

Some other investors also participated in Pinhome’s recent investment, including Goodwater Capital, Insignia Ventures Partners, and Global Founder Capital as the investment unit of Rocket Internet.

As DailySocial’s team reached out, Pinhome refused to provide a response regarding investment. They only said that their main focus is currently to incerease the number of listings and expanding collaboration with stakeholders in the property sector.

In addition, they also said that they are expanding intensively for the on-demand services, Pinhome Home Service. Currently, the service is available in 14 cities including Jabodetabek, Bandung, Malang, Sleman, Sidoarjo, and Surabaya. Users can access it through the GoService feature in the Gojek application.

Service differentiation

Was founded by Dayu Dara Permata (CEO ) and Ahmed Aljunied (CTO ) last year, Pinhome aims to facilitate easier, faster, and transparent property transactions with the help of technology.

In an interview, Dara explained, “Pinhome is very unique, we are an online platform that facilitates interaction between property owners, buyers, and agents. As a property owner, it will be very easy as in the future we will have access to hundreds of thousands of agents who are ready to help market their properties.”

In Indonesia, the proptech sector is rapidly growing. Some players, especially with the listing feature, find the traction quite impressive. In addition, several other business models are starting to appear in the digital landscape, such as financing services.

Startup proptech di Indonesia — Indonesia’s proptech startups, data as of the end of 2019

Meanwhile in the regional, competition is narrowing into two major groups, PropertyGuru (its units in Indonesia: Rumah.com and Rumahdijual.com) and 99.co (has acquired Urbanindo). 99.co also has a strategic partnership with REA Group, which previously acquired iProperty — including the Rumah123 platform in Indonesia.

However, with services more specific and emphasize the cultural matters, local startups such as Pinhome, Travelio, Mamikos, Rukita, and others are trying to win the local market.

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Original article is in Indonesian, translated by Kristin Siagian

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GudangAda Closes Series B Round with 1.49 Trillion Rupiah Funding

The B2B marketplace platform for FMCG, GudangAda, has secured another investment of $100 million or around 1.49 trillion rupiah. This is a series B funding round led by Asia Partners and Falcon Edge.

Also, Sequoia Capital India, Alpha JWC Ventures, and Wavemake Partners are participated in this funding. For GudangAda, this investment has exceeded its initial target, which was $75 million. With the additional funding, GudangAda has now raised a total investment of up to $135 million.

Falcon Edge’s Co-Founder, Navroz D. Udwadia said, after years of investing in a number of marketplace, Stevensang seemed to have the ability to execute business in a short time. Therefore, he is optimistic that GudangAda will become the largest marketplace for Indonesian MSMEs

“With our research and discussion with principals, wholesalers and retailers, we are confident in GudangAda’s return on investment (ROI) and the benefits it offers to the entire ecosystem,” he said.

Enhance the supply chain business

GudangAda’s Founder and CEO, Stevensang said the company is now in the right path to empower all players in the Indonesian supply chain ecosystem, from producers, distributors, wholesalers, to retailers. GudangAda said its services have been used by nearly half a million users in more than 500 cities in tier 1 to tier 3 with a comprehensive monetization model and complete ecosystem.

“We will expand GudangAda’s team and enhance our service ecosystem from logistics, payment systems (POS/SaaS), marketing, data, to financial services. We will also strengthen our position by developing artificial intelligence to offer the best personalized services to SME traders,” he said in an official statement.

Meanwhile, GudangAda’s CFO, JJ Ang said that investors’ enthusiasm has proven GudangAda’s success in building a platform with efficient capital while reaping growth. GudangAda is said to start monetizing its business since the first quarter of 2020.

GudangAda claims to be one of the B2B marketplace platforms with the fastest growth and most productive capital in the Southeast Asia region. Based on the records, GudangAda has raised $6 billion Net Merchandise Value (NMV) in less than three years.

Meanwhile, the total investment value is less than $35 million with an efficiency ratio of 170 times. Moreover, the GudangAda Logistik service has been recorded to have doubled every two months since its launching in mid-2020.

Applying the asset-light and capital-efficient business concept, GudangAda has collaborated with vehicle and warehouse business owners, including its MSMEs members. In addition, GudangAda offers a dynamic transportation and warehouse management service system to make it easier for partners to digitize their business.

GudangAda offers a one-stop solution for MSME players to make it easier to access various products. By targeting the FMCG sector, GudangAda has expanded its product categories to medicines, pharmaceuticals, and household appliances. Since the category expansion, GudangAda has experienced an increase in transactions from tens of thousands of MSMEs.

Currently, GudangAda has officially partnered with more than 65 principals, both local, national and multinational. One of these investments is used to expand cooperation with more principals.

MSME as the target market

In a general note, the number of MSME players in Indonesia is estimated to reach more than 65 million as of 2020. With the digital acceleration last year, SIRCLO’s e-commerce enabler report revealed that online retailers are expected to contribute 24% in 2022. In the report, sales on digital channels can be maximized, especially by FMCG brands which market everyday products.

B2B marketplace services such as GudangAda allow these MSME actors to get product stock more efficiently.

Actually, GudangAda is not thesole player in this sector. There are others, including Ula that also working on the existing potential. In addition, with a different approach, the online marketplace giants are promoting O2O strategies to make it easier for small traders to access various products — for example, by Mitra Bukalapak or Mitra Tokopedia.

The digitization, in the long term, also provides MSMEs with potential to gain more benefits, including financially. One of the scenarios started to be promoted is that recorded transaction data can be used as a credit scoring variable to help MSME players gain access to capital financing. Thus, it will support their efforts to increase the capability and size of the business they are starting.

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Original article is in Indonesian, translated by Kristin Siagian

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A Starter Kit to Become Angel Investor

Based on data compiled by DailySocial, there are at least seven deals in Indonesia that have announced to receive funding from angel investors in 2020.

In a recent conversation with DailySocial, Edward Tirtanata once mentioned the landscape of angel investors in Indonesia. He said, the current angel investor ecosystem is not very developed. In fact, quite a few startups seek access to early-stage funding through this route.

Indonesia currently has an angel investment network through ANGIN (Angel Investment Network Indonesia), however, if you refer to information from a number of startup founders, there is not much access to connect with angel investors. The existence of angel investors in Indonesia is not actually non-existent, it’s just that they tend to avoid exposure.

In addition to access, there is another issue that is quite interesting and gain much attention, the amount of investment value to become an angel investor. Can someone who was not quite rich, be an angel investor? If the answer is yes, what is the ideal value should one has to become an angel investor?

Angel Investor’s definition

In a blog written by journalist and investment observer Chris Muller, there are some tips that can be implemented by anyone who wants to try their luck as an angel investor, even though they may not be rich.

Before we get there, let’s clarify what an angel investor is. Muller defines it as someone who has enough money to invest in an early-stage business or an existing business that is already growing. Similar to investors in general, angel investors crave a return on investment which is usually in the form of equity in the company or revenue sharing.

As citing Entrepreneurs, their motivation to invest is not solely for profit, but based on the desire to help new business. Angel investors can come from various professions, such as doctors, lawyers, suppliers, or business partners. Unlike the VC which stands as an institution to invest other people’s money.

When referring to regulations in the United States (US), anyone can become an angel investor as long as they meet the requirements as an “accredited investor” by the Securities and Exchange Commission (SEC) Stock Exchange Commission, which is to have a net worth of $1 million or more (excluding residence principal) and earns $200,000 per year.

How much capital required?

Back to the first question, is it possible to invest in a small amount of money? How much does it take to become an angel investor? Muller revealed, referring to recommendations from experienced investors, investors allocate up to 10% of the portfolio for angel investment.

This might not answer how much is actually required. The easiest answer that can be given is that it depends on the type and size of the targeted investment. If you copy the references to the television show Shark Tank, you can start with an investment of hundreds of thousands of US dollars.

In fact you could have invested on a smaller scale, says $10,000. However, Muller highlighted that the smaller the investment, the smaller the shares owned (and of course the profits). This amount can also be a factor that affects the involvement of investors in making business decisions.

He gave an example, if the total investment in the portfolio is $100,000, this will fulfill the 10% portion as mentioned earlier. However, if you want to invest in a good startup business, he recommends having at least $50,000 – meaning your overall portfolio can be close to $500,000.

Meanwhile, quoted from Pluang blog, Angel Capital Association data noted that investors with entrepreneurial backgrounds invest an average of $39,000. There are also those who invest an average of $28,000. There is no specific amount, it all depends on the investor and the targeted business.

Collectively, global angel investors set aside up to $24 billion to invest in 64,000 startups each year.

Pros and cons of angel investors

Basically, investing is not just a way to enjoy profits. It’s a risky movement and you could lose probably all of the money – even if the company underperforms or goes bankrupt. Other data from the Angel Capital Association shows that at least 50% of angel investors lost half of their funds.

Moreover, we need to underline that this is an investment, not a loan. One of the reasons why businesses prefer angel investment is because it is not recorded as a loan on their balance sheet. Angel investors buy part of the company. This means that there is another way if the business fails and you lose money than bothering to take action if it is a loan that cannot be repaid.

On the other hand, angel investment can also potentially generate very high returns. Muller gave an example, Peter Thiel’s investment in Facebook has become one of the most popular angel investments. Thiel injected $500,000 into Facebook in 2004 before Mark Zuckerberg’s platform went public. If only Thiel hadn’t sold his 80% stake by now, Thiel’s stake could be worth $10 billion today.

Another plus side is that you can build your company the way you want. Angel investment makes it possible to acquire ownership of the company, which automatically enables you to be involved in making decisions. However, this is all provided that it refers to the size of the investment and the agreement you make with the business owner.

What is also important is investment diversification. Muller said, angel investing gives investors the option to expand their investment portfolio, such as stocks, bonds, and exchange traded funds (ETFs). Investors can become part owners of the company and pocket returns in the form of company profits.

Does angel investment profit?

Still referring to the Pluang blog, a number of angel investors reported returns ten times higher than their initial investment after selling their shares in the company.

Based on a number of studies, only 5-10% of angel investments are recorded for profit. On average, 11% of funded companies generate positive exits. It also has a variety of exit results.

Thus, not all exits are profitable for angel investors. All of this goes back to the research conducted by investors regarding the company and the business category to be funded. First understand the business you want to fund before deciding to invest.

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Original article is in Indonesian, translated by Kristin Siagian

Trustmedis Launches Doctugo App, Preparing for Fundraising

In order to accommodate patients to access services from health facilities integrated with Trustmedis, the Doctugo application was introduced for public. In a general note, Trustmedis is a cloud-based platform aimed to support health facility services such as hospitals and clinics.

Trustmedis’ Founder & CEO, Achmad Zulkarnain revealed to DailySocial, in order to extend the business, Trustmedis also plans to expand strategic partnerships with healthetch platforms and super apps in Indonesia.

“Through Doctugo, we want to expand collaboration with healthtech platforms and other startups in Indonesia. We realize that in order for businesses to grow bigger, the most relevant way is collaboration not competition,” Achmad said.

Regarding finalization process, some leading healthtech platforms and startups will be partnered up with Doctugo. With the number of health facilities by Trustmedis, around 240 hospitals and clinics, partners should be able to benefit each other. They also wanted to provide more options and flexibility for patients from each health facilities.

“Currently, we have around 5 million registered patients from health facilities who have joined Trustmedis. We expect with the Doctugo application this number can be doubled by the end of 2021,” Achmad said.

Although it was recently launched, Achmad claims that the Doctugo application has been downloaded by around 500 people on the Play Store and has established partnerships with 6 hospitals in several regions in Indonesia. It is expected as the download increases to 5 thousand, they will held official launching.

Medical resume access and fundraising plan

In order to ensure all patients are verified, those who intend to use various services on the Doctugo app must download the app at the health facilities they visit. Later, the hospital or clinic partner will recommend the patient to download the Doctugo app. It’s not only for the queue, but it can also provide access to patient’s medical resume through the application.

“We make sure to follow all the rules from our regulator. Later, medical resumes can be viewed directly in the application as well as various other services,” Achmad said.

Thus, Trustmedis is not required to provide educational activities to raise awareness. All processes will be the responsibility of the participating health facilities. Therefore, verifying the data of existing patients, to be able to use all the services available in the application.

In business terms, through the Doctugo application, Trustmedis is expected to be able to easily launch monetization activities to health facilities which in the future have the potential to increase the number of their patients.

“In terms of quantity, we see more health facilities in the form of clinics. However, in terms of value, hospitals are ideal for us due to the large number of patients we have,” Achmad said.

After securing seed funding in early 2020, Trustmedis plans to held another fundraising this year. It is currently in the exploratory process, the fresh funding is targeted to finish in the third quarter this year.

“Even though our business that relied entirely on health facilities declined in the early pandemic, we really expect to accelerate Trustmedis business growth with Telemedical services and currently the Doctugo application, which is increasingly developed thanks to the massive digital adoption among the Indonesian people,” Achmad said.

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Original article is in Indonesian, translated by Kristin Siagian

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Bank Jago Plans for Sharia Services and MSME Financing This Year

Aside from gradual integration with the Gojek ecosystem, PT Bank Jago Tbk (IDX: ARTO) is also preparing to extend the coverage of digital banking services in 2021.

This year, Bank Jago targeted the middle income and mass market segment, including MSMEs and retail (consumer), both conventional and sharia.

Bank Jago’s President Director, Kharim Indra Gupta Siregar revealed that they will be focused on two things, digital-based sharia services and lending through digital platforms for MSMEs.

The following is an extension of DailySocial’s exclusive interview with Kharim Indra Gupta Siregar and Bank Jago Commissioner Anika Faisal.

Sharia digital banking

Currently, Bank Jago is exploring whether this digital sharia will be presented in a new app or just an additional service in an existing one, Jago App. The company has considered several things regarding this development.

Kharim thought, today’s Islamic banking products in Indonesia tend to be associated as different products from its parent company, which in fact is a conventional bank. This is the factor that makes the new sharia services development to follow the conventional way.

The market opportunity for Islamic banks is very large considering its penetration is quite low in Indonesia. Referring to data from the Financial Services Authority (OJK), the market share of Islamic banks was only 6.33% as of October 2020. The increase was not too significant compared to the market share in 2017 which was only 5%.

In addition, the current Islamic mobile banking services have mostly used the USSD menu considering that the digital ecosystem was not ready at that time, smartphones and airtime were still quite expensive.

He observed that Bank Jago’s position as a tech-based bank provides space for companies to utilize 100% of the same capabilities in developing Islamic banking platforms. Whether it is presented in the form of a new app, it will duplicate the Pocket Jago App feature to the sharia platform.

“Currently, we are going through various processes, such as approval and others. We will have it soon. We’ve seen a good opportunity where sharia users can get similar services on the Jago App. We provide all the capabilities there,” Kharim said.

Meanwhile, Anika Faisal considers that there are no Islamic banking products in Indonesia to date that are able to provide a good user experience. She said, these various considerations are to ensure the company can provide a product proposition that is as good as Jago App.

“I have my own preference for sharia services, not in the context [service preference] for usury or not. Unfortunately, sharia mobile banking in Indonesia is currently not able to provide convenience. Therefore, I challenge Bank Jago to have good convenience products. The product [sharia] is basically the same, but what matters is the service,” she said.

Digital lending for MSME

In 2020, the number of MSME players in Indonesia is estimated to reach more than 65 million, contributing more than 50% to Indonesia’s GDP, and absorbing 97% of the active work budget in Indonesia.

The Bain & Company report in 2019 recorded that there were as many as 92 million people or 50% of the total population who did not have access to banking services (unbanked). 25% or 47 million of them do not have adequate access to banking services (underbanked).

Bank Jago observes promising potential in these two segments. In its 2020 financial report, Bank Jago is said to build a financing business with a digital ecosystem managed through Partnership Lending (Business Finance Solution). Since last year, Bank Jago has collaborated with fintech platforms to channel financing.

Some that have been announced include Akseleran, Akulaku Finance, and Adakami.

The collaboration is expected to accelerate the customer acquisition process, which Bank Jago defines as the productive pre-prosperous segment. This segment is considered to have passed the poverty level, but still needs financing. The company targets this lending to be significantly distributed to this segment.

“We will prepare products/services for the entrepreneurial segment as we see great potential from this segment of business players who are yet to be fully formalized. We are going to announce and it’s in progress. After the second right issue, we get strong capital to pursue lending growth because we don’t have a lot of legacy lending products. Therefore, we can focus more on partnerships. Currently, we have partnered with ten lending sites,” Kharim said.

Overall, he said, Bank Jago has closed good number on growth in lending. According to its records, as of the end of 2020 until the first quarter of 2021, Bank Jago has disbursed loans from around Rp900 billion to Rp1.3 trillion with an increase of 40%.

Kharim revealed that his team will collaborate with partners to provide lending products on the Jago App to support the underwriting process and determine whether prospective customers are eligible for loans.

“Currently, Gojek customers have been offered PayLater products. It means, there is analytics support to provide lending to customers. In this model, we want to expand what can we provided through lending products. This also depends on the ecosystem, such as Gojek’s user ecosystem, partners drivers, and merchant partners. Each has a different approach. We can do this after the Jago App and Gojek integration is running,” he said.

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Original article is in Indonesian, translated by Kristin Siagian