Encouraging Financial Inclusion, Sampoerna Bank And JULO Provide Digital Access To Credit

JAKARTA - PT Bank Sahabat Sampoerna (Bank Sampoerna), which from the beginning focused on empowering MSMEs, and JULO Group (JULO), a technology company made by Indonesian children, agreed on financing cooperation through the addition of credit facilities reaching Rp600 billion.

The distribution of credit facilities is a continuation of the cooperation that has been carried out by Bank Sampoerna and JULO since 2017 by targeting people who have not been touched by formal financial services. This is also done in order to encourage the growth of financial inclusion in Indonesia.

Director of Finance & Business Planning at Sampoerna Bank, Henky Suryaputra revealed, the strategic partnership with JULO reflects the company's three main pillars, namely MSMEs, technology development, and collaboration. From the start of its establishment, Bank Sampoerna was consistent in empowering MSMEs. By strengthening collaboration and digitization, his party hopes to help the community and MSME players in getting access to productive funding more easily.

The financing cooperation between Bank Sampoerna and JULO has been established since 2017, with an initial value of IDR 10 billion and continues to be increased from year to year to date in line with the growing dynamics and performance of JULO's business.

"We have decided to increase the number of funding facilities again to JULO because it is based on the excellent prospects and performance of JULO's business. This step is also part of our strategy to expand financial inclusion, credit access, and funding needs that are oriented towards fulfilling the quality of life of the community," said Henky, in his statement, Tuesday, July 2.

Until the end of March 2024, Bank Sampoerna recorded total lending rose 13.2 percent to Rp11.6 trillion compared to lending at the end of March 2023 of Rp10.3 trillion. Around 67 percent of total lending or Rp7.8 trillion is addressed to MSME players. Loans to MSMEs are distributed either directly by Bank Sampoerna or through cooperation with partners.

President Director of JULO, Harri Suhendra explained, the continued collaboration between Bank Sampoerna and JULO, accompanied by the addition of credit facilities, can support companies to expand access to affordable, easy, and inclusive funding to the public, especially underbanked and unbanked, which is still quite large, which is around 48 percent of the total population of Indonesia or around 97.8 million people.

In addition, JULO also sees the potential for lending for access to various funding, one of which is productive credit, where out of a total of more than 60 million MSMEs in Indonesia only 27.6% get credit facilities from formal institutions.

"We are grateful for the trust of Bank Sampoerna so that this collaboration can be continued. Of course, this further strengthens JULO's credibility as a healthy fintech lending company in the industry and has a risk management level that matches Bank Sampoerna's risk appetite," added Harri.

To note, JULO recorded business growth slowly but positively since its establishment in 2017. The total funding that has been disbursed until 2024 has reached more than IDR 15 trillion and is accompanied by good risk management management at the level of payment success (TKB90) in accordance with the provisions of the Financial Services Authority (OJK).

JULO always shows the principle of providing careful and healthy funding to all its customers. The company continues to maintain the funding that has been carried out in order to create stability in the TKB90 position and can increase the company's health level in terms of regulation by the OJK.

It was recorded that in the first four months of this year, JULO's total funding distribution increased by 87.19 percent compared to the same period the previous year with a value of more than IDR 3 trillion. JULO also targets the distribution of funding of more than IDR 10 trillion to the public by the end of 2024.