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Logiq Partners With KMSB to Bring Mobile Fintech Services to Indonesia

Logiq, Inc. a global provider of award-winning eCommerce and fintech solutions, has been selected to provide mobile microlending and related services to 48 million Indonesians in an exclusive strategic alliance with the country’s social security programme provider, Koperasi Mona Santoso Berjaya (KMSB).


Logiq and KMSB have agreed to jointly own and operate a new mobile fintech platform that will deliver mobile financial services. Logiq, through its Indonesian operations, will provide platform design and technology, management, ongoing hosting and technical support. KMSB will provide the financial institutional relationships for enabling the microlending programme.


“Through this exclusive strategic alliance with KMSB, we have a tremendous opportunity to improve the lives of nearly 20% of the Indonesian population who normally do not have access to traditional financial services,” said Logiq president, Brent Suen. “The opportunities for new revenue streams from micro-lending, mobile payments, and our eCommerce solutions with this enormous user base are also phenomenal, potentially generating tens of millions of dollars of revenue annually for the benefit of our shareholders once the alliance with KMSB is fully launched, as well as the important programmes that KMSB will be providing.”


Using the new fintech platform, KMSB will provide micro-lending services to Badan Perlayanan Jaminan Sosial Ketenagakerjaan (BPJSTK), the social security agency that administers retirement and pension plans on behalf of Indonesian government entities and about 600,000 small- and medium-sized businesses (SMBs), with a combined total of 48 million individual members.


Dr. Mohsein Saleh Badegel, chairman of KMSB, said: “As a national cooperative, KMSB provides valuable services to its members that includes loans and insurance. We also lead investment projects in agriculture and other areas to create an economic ecosystem for our members. We can also provide loans to employees of state-owned enterprises, like PT. Samudranayaka Grahaunggul (SANGU), as well as state body employers, like BPJSTK with its 48 million members. The strategic alliance with Logiq will help us achieve the full potential in serving this immense consumer base and will generate revenue streams for both partners.”


The partners will work together to launch a new marketing and advertising campaign that will encourage adoption and regular use of the mobile fintech offerings. They plan to begin with a pilot programme for 6,000 BPJSTK employees who will be able to borrow up to 20% of their annual salary. The programme is planned for launch in the first quarter of 2021 with the next phase involving rolling out the programme to 5 million contract/delivery drivers of Garda Digital Indonesia, a membership organisation overseen by BPJSTK that handles pensions and health benefits for ridesharing drivers. Microloans will be made available to these members for personal or business use, such as purchasing, configuring, or repairing mobile vehicles.


Finally, the programme will be introduced to all BPJSTK’s 48 million members and 600,000 SMBs. They will also gain access to Logiq’s increasingly popular PayLogiq e-Wallet and GoLogiq hyper-local food delivery mobile platforms.


“This alliance, and its vast opportunities for expanded market reach and growth, represents the culmination of years of investment in our South East Asia operations,” added Suen. “To put the opportunity in perspective, our Indonesian operations currently have 36,000 SMBs and 130,000 individual customers, and we now have immediate access to an exponentially greater base of new customers. Further, the equal operational and revenue share structure with KMSB validates and reaffirms the unique and powerful capabilities of our mCommerce and fintech platforms. As we continue to attract major global partners like KMSB, ShopeePay and TechMahindra, we see ourselves at just the beginning of a long-term acceleration in this key segment of our global business operations.”


Source: https://thefintechtimes.com/logiq-partners-with-kmsb-to-bring-mobile-fintech-services-to-indonesia/

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