Confirming Vision To Be The Most Responsible Fintech, CoinWorks Launch Impact Report 2023: Leveling Up The MSME Ecosystem

Photo: Doc. CoinWorks

JAKARTA - CoinWorks proudly announced the launch of its second edition of the Impact Report entitled "Leveling Up The MSME Ecosystem," which features the outcome of the company's social impact throughout 2023, and strengthens its commitment to becoming the most responsive fintech in supporting MSME growth throughout Indonesia by 2025.

Benedicto Haryono, CEO and Co-Founder of CoinWorks Group, stressed the company's commitment to strengthening the MSME ecosystem in Indonesia. He highlighted, "Faced with various challenges, and on the other hand the growth and extraordinary achievements, CoinWorks remains dedicated to its vision to providing superior service. In 2023, we made significant breakthroughs in inclusive financing, focusing on ecosystem-level support that reaches businesses in interconnected supply chains. This achievement was successful thanks to the dedication and extraordinary spirit of our team as well as the support of all stakeholders."

Leveling Up the MSME Ecosystem

CoinWorks not only focuses on the financial sector, but also improves the MSME ecosystem in Indonesia, while prioritizing responsibility to all its users. In sectors such as fast moving consumer goods (FMCG), agriculture, and health, speed, efficiency, and kelinness factors are essential.

More than 60 percent of businesses face challenges in managing supply chains efficiently, especially regarding cash flow constraints. We have an ideal idea that MSMEs not only enter the market as retailers, but become an integral part of the domestic production ecosystem, which has a comprehensive record of business data.

With access to efficient financing from CoinWorks, backed by individual investors, MSMEs can negotiate better with suppliers, recruit more team members, invest in technology, and take advantage of new market opportunities.

Andrew Soeherman, CEO of Eratani, shared his experience, CoinWorks facilitates access to finance through easier and faster funding, especially for farmers and other business units.

"Our collaboration in supply chain financing, invoice financing, and direct loans to farmers through EraKiosk and EraFarm has made major changes," he said, in a written statement, Wednesday, June 19.

Mr. Engkus, a farmer in Indramayu, West Java, noted that with Eratani's support, he managed to increase land productivity by 20 percent.

"Their assistance exceeds agricultural resources and guides that are agronomic to helping in the absorption of crops," he said.

Our important steps in building a more inclusive financial ecosystem include the introduction of deposits from CoinWorks Bank that mark important moments in our efforts to make a profit in the second half of 2024.

This step is in line with our commitment to expand financial access for everyone. The following achievement is the positive influence of CoinWorks on the MSME landscape in Indonesia.

CoinWorks Ecosystems grew through collaboration

CoinWorks partners with key MSME players to improve the MSME ecosystem in Indonesia. We are thinking of steps ahead about how additional capital through business partners who are members of the CoinWorks ecosystem can improve the entire supply chain, and resolve liquidity constraints.

These efforts are also strengthened by support from the government, MSME facilitators, and traditional financial players. In addition, the majority of MSMEs are funded by individual investors from Indonesia who believe in the Indonesian MSME ecosystem.

CoinWorks Ecosystem as a passionate learner

CoinWorks provides free learning opportunities for everyone, with more than 500 free financial inclusion events and nearly 135 thousand participants as a whole. CoinPreneur has organized eight impact events, including financial literacy webinars, business registration workshops, village visits, UMKM bazaars, and exhibitions. This initiative empowers entrepreneurs, with 69 percent female participants. CoinWorks users demonstrate advanced financial practices, and ensure their sustainability and business scalability.

The CoinWorks ecosystem allows for early access to finance

Through innovative and inclusive financial solutions, CoinWorks has significantly expanded capital access for MSMEs throughout Indonesia. By distributing 27.3 trillion rupiah (1.8 billion US dollars) to more than 900 thousand MSMEs, we have empowered thousands of businesses to grow and grow.

The social impacts we generate include more than 106 thousand loans, with 83 percent of these loans financed by young investors, demonstrating a strong commitment from the younger generation to support MSME financing.

Our portfolio reflects our dedication to diversity and inclusion, with 80 percent of businesses being micro-enterprises, 36 percent being businesses owned by women, and 48 percent being located in rural areas. This broad range affirms our mission to democratize access to finance and encourage sustainable economic growth in various segments of society.

The CoinWorks ecosystem accelerates digital growth faster

Job creation is a significant achievement of CoinWorks in 2023, with 95,000 new jobs created by MSMEs receiving business loans from CoinWorks. This figure is an 80 percent increase compared to the previous year.

In addition, MSMEs report an average increase of 37.8 percent in sales value and 37.2 percent in total assets, where this metric is significantly higher than reported by non-user CoinWorks. Our initiative in supply chain financing boosts sustainable growth, with 94 percent of MSMEs experiencing increased use of digital media since joining CoinWorks.

The CoinWorks Ecosystem has great potential for inclusion

CoinWorks is dedicated to fair practice, reducing emissions, and empowering women. CoinWorks has made significant progress in supporting women entrepreneurs, while still emphasizing the need for ecosystems to adapt more effective programs to assist women in asset growth, BPJS ownership, and increased business operations.

"We are actively raising awareness about sustainability among MSMEs, although there are no indicators for MSME emissions in Indonesia. Our users implement Environmental, Social, and Governance (ESG) practices, including complying with standard working hours, empowering local suppliers, and complying with regional minimum wage regulations," he explained.

The Comprehensive ESG Framework To Protect Users And Improve Accountability Of The Fintech Sector

Our presentation talks a lot about the trust and beliefs given by our users, investors and stakeholders. In addition, our ESG framework ensures that we not only protect our clients but also maintain the accountability of the fintech sector. We believe that sustainable growth is realized only with responsible and ethical practices," said Benedicto Haryono.

CoinWorks adheres to client protection standards at local and international levels, as evidenced by our participation in the Digital Finance Service Protection Assessment Tools by Cerise+SPTF, by achieving a participation MRnze.

CoinWorks' commitment to information security and user data privacy is further strengthened by ISO 27001:2022 certification.

Angelique Timmer, CoinWorks Group's Chief of Impact, stressed that this commitment goes beyond rules and regulations, reflecting our promise to users that any interaction is carried out with high ethical standards.

"Our main priority is the welfare of users, and we are determined to ensure this in every aspect of our services," he explained.

The company emphasizes the importance of balance in ecosystems, focusing on diversity, equality, and inclusion in the workplace. Our team consists of employees of five different nationalities, with 35 percent being women, an increase of 2 percent compared to the previous year. In the technology department, 18 percent of personnel are women.

In addition, by emphasizing a healthy environment to operate, we have reduced the carbon footprint intensity by 14 percent compared to the previous year.

Become A Pioneer Towards A Higher Level In 2024

CoinWorks agenda for 2024 reflects our ambition to strengthen ESG practices, strengthen MSME business health, and pave the way for green financing and services tailored to women entrepreneurs. Inclusive ecosystems have great potential for change, namely reducing emissions, empowering women, and providing equitable products.

Along with the launch of Impact Report 2023, CoinWorks announced its mission to engage further with local communities. The 'Play It Forward' initiative invites change carriers to share stories about how they help communities.

At this initiative, CoinWorks will sponsor several football teams by providing football and team uniforms. This effort reflects the spirit and unity of the Indonesian people in building communities through soccer sports that are very popular.

Inisiatif ini adalah dukungan KoinWorks untuk upaya positif dalam komunitas dan merupakan demonstrasi dari komitmennya untuk memberdayakan komunitas melalui tindakan nyata di luar pembiayaan untuk usaha. Kompetisi ini terbuka untuk kelompok sepak bola aktif yang memberikan kontribusi positif, baik kepada anggotanya maupun lingkungan sekitar. Masyarakat dapat mengakses Impact Report dan mendaftar ‘Play It Forward’ melalui tautan pendaftaran di https://koinworks.com/laporan-dampak-sosial/.