Heaptalk, Jakarta — Julo Group announced its partnership with Bank Sahabat Sampoerna (Bank Sampoerna) to add a credit facility of up to Rp600 billion, approximately US$36.6 million (US$1 equals Rp16,386) (07/02). This credit facility addition continues the cooperation that has been established since 2017.
This financing cooperation targets people who have not yet been touched by formal financial services and aims to promote financial inclusion growth in Indonesia. Starting with an initial value of Rp10 billion, or around US$610.4, the two parties have continuously increased the financing value from year to year in line with Julo’s dynamic and business performance, which is increasingly developing.
Henky Suryaputra, Director of Finance and Business Planning at Bank Sampoerna, revealed that the strategic partnership with Julo reflects the company’s three main pillars: MSMEs, technology development, and collaboration. From its inception, Bank Sampoerna has consistently empowered MSMEs. By strengthening cooperation and digitalization, they hope to help the community and MSME actors access productive funding more easily.
“We decided to increase the funding facilities for Julo again based on Julo’s excellent business prospects and performance. This step is also part of our strategy to expand financial inclusion, credit access, and funding needs that focus on improving the community’s quality of life,” Henky said.
Targeting the underbanked and unbanked segments
Until the end of March 2024, Bank Sampoerna recorded a 13.2% increase in total credit distribution to Rp11.6 trillion compared to credit distribution at the end of March 2023, Rp10.3 trillion. About 67% of the total credit distribution, or Rp7.8 trillion, was directed to MSME actors. Loans to MSMEs are distributed directly by Bank Sampoerna and through partnerships with partners.
Harri Suhendra, President Director of Julo, explained that the continuation of the collaboration between Bank Sampoerna and Julo, accompanied by the addition of the credit facility, can support the company in expanding affordable, easy, and inclusive funding access to the community, specifically the underbanked and unbanked segments. This segment still numbers quite large, around 48% of the total population of Indonesia, or approximately 97.8 million people.
Moreover, the company also sees the potential for credit distribution for various funding access, one of which is productive credit. Of more than 60 million MSMEs in Indonesia, only 27.6% have received credit facilities from formal institutions. Harri added, “We are grateful for Bank Sampoerna’s trust in continuing this cooperation. Surely, this further strengthens Julo’s credibility as a healthy fintech lending company in the industry and has a risk management level following Bank Sampoerna’s risk appetite.”
Julo has recorded slow but positive business growth since its establishment in 2017. The total funding disbursed until 2024 has reached more than Rp15 trillion, accompanied by good risk management with a success rate (TKB90) under the Financial Services Authority (OJK) provisions.
