Wednesday, 17 April 2024

Batumbu supports Indonesian MSMEs through supply chain financing

5 min read

By Foo Boon Ping

Indonesian fintech lending platform, Batumbu, is providing supply chain financing for FMCG, F&B, and pharmaceutical sectors, aiming to facilitate business growth, provide secure investments, and support the development of MSMEs in Indonesia.

Batumbu, an Indonesian subsidiary of Singapore's Validus Capital, is a fintech micro, small and medium-sized enterprise (MSME) lending platform that specialises in supply chain financing for suppliers and distributors primarily within the fast-moving consumer goods (FMCG), food and beverage (F&B), and pharmaceutical sectors.

According to Batumbu's director, Adinata Widia, the platform's goal is to facilitate growth for businesses and provide secure and diversified investment options for fund owners. Widia explained that the platform offers a proprietary credit algorithm to manage risk, backed by a team of seasoned banking practitioners in the MSME sector.

Batumbu also serves a social function by supporting MSMEs in Indonesia. This financial support is a significant contributor to the growth and development of these businesses.

Batumbu is majority owned by Validus Investment Holdings, with an 84% stake. Triputra Investindo Arya, one of Indonesia's largest business groups, holds 6% and the remaining stake is held by individual investors.

Batumbu's operations are primarily funded through partnerships with the larger commercial banks or their digital banking subsidiaries such as Bank Mandiri, BNI, BRI's Bank Raya, CIMB Niaga, and Superbank (the rebranded Bank Fama International, backed by Singapore-based Grab and Singtel). It appears to be attracting increasing interest from the formal banking industry due to its performance and quality of portfolio.

Widia explained that in one of the local dialects, Batumbu means "growing with you," reflecting the company's mission of supporting financial growth for its customers and the Indonesian MSME sector at large.

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