Heaptalk, Jakarta — Indonesia’s agritech Eratani partners with Bank BJB to provide financing access to the farmers within its ecosystem through the Micro and Super Micro People’s Business Credit (KUR) scheme.
Eratani-assisted farmers can access financing with more accessible terms and a faster process through the Micro KUR facility, with a credit ceiling of USD6,191, equal to Rp100 million, or through the Super Micro KUR (SUMI) facility, with a maximum credit ceiling of USD619.22 (around Rp10 million), tailored to the area of land managed.
According to the company, the fresh capital of Eratani assisted farmers for rice cultivation is around Rp10 million to Rp12 million per hectare. Through this financing facility, Eratani and Bank BJB hope to increase rice production and the quality of life of local farmers.
Responding to this strategic affiliation, Billy Rahadian, Head of Bank BJB Daan Mogot branch, admitted, “Bank BJB will continue to support Indonesia’s agricultural sector, which is a driver of economic growth. With this funding facility, Eratani farmer partners are expected to have more freedom to develop their farming businesses.”
Established in 2021, the fintech focuses on agricultural sector provides farmers with funding, assistance, and market access. This startup collaborates with more than 22,000 farmers in West Java, Central Java, East Java, and South Sulawesi by providing an integrated ecosystem. With its comprehensive assistance, Eratani has helped farmers to increase agricultural production by 29%. As an ecosystem builder, this startup collaborates with 500 agricultural kiosks and 70 Rice Milling Units. To enhance efficiency in the national agricultural industry, the startup also expanded its network into five Indonesian provinces after seizing seed round funds of USD2 million led by SBI Ven Capital through a joint fund with Kyobo Securities and NTUitive.
“Through this partnership, we will ensure that farmers receive the financial support they need to accelerate the development of their farming practices. For this reason, we are enthusiastic about performing this collaboration,” CEO of Eratani, Andrew Soeherman, affirmed.
