Logiq Receives Indonesian Government Approval to Offer Micro-Lending Services to 50 Million Indonesians
- Lending , FinTech StartUps
- 13.09.2021 01:35 pm
Logiq, Inc. (NEO: LGIQ) (OTCQX: LGIQ), a global provider of award-winning e-commerce and fintech solutions, has received approval of an annual lending rate from the Indonesian Government to provide micro-lending services to the more than 50 million members of Badan Perlayanan Jaminan Sosial Ketenagakerjaan (BPJSTK). BPJSTK manages the pensions and health benefits for these members in Indonesia.
The lending rate approval follows Logiq’s earlier announced launch of a program to provide mobile fintech services in an exclusive strategic alliance with the country’s social security program provider, Koperasi Mona Santoso Berjaya (KMSB). The program will offer microloans to BPJSTK members for personal or business use using the approved lending rate.
“This lending rate approval by the Indonesian Government represents a major step towards improving the lives of millions of Indonesians who do not have access to traditional financial services,” noted Brent Suen, president of Logiq. “The impact of COVID-19 had delayed this regulatory approval, but we can now proceed full steam ahead.”
Despite the delayed approval, the pandemic has actually accelerated the adoption of digital financial services across Southeast Asia and has driven increasing demand for contactless digital banking services. According to SGE, Indonesia’s digital financial services market is expected to soar at a compounded annual growth rate of 34% to reach US$8.6 billion by 2025.
“We look forward to benefiting from this fast-growing demand as we support greater financial inclusion in Indonesia through our micro-lending services,” added Suen. “We also see tremendous opportunities for strong new revenue streams from microlending, mobile payments, and our eCommerce solutions with BPJSTK’s enormous user base, as well as with other future partners in the region.”
The rate approval allows Logiq to begin the initial rollout of its new mobile fintech offering to the 5 million contract and delivery drivers of Garda Digital Indonesia, a membership organization overseen by BPJSTK, as well as 6,000 government body employees. These individuals will be able to borrow up to 20% of their annual salary through the new program.
Under their exclusive alliance, Logiq and KMSB are developing a jointly owned and operated mobile fintech platform designed to deliver these mobile financial services throughout Indonesia. Logiq, through its Indonesian operations, is providing the platform design and technology, management, ongoing hosting and technical support. KMSB is providing the professional and financial institutional relationships that will drive the micro-lending program.
The partners are also working to launch a new marketing and advertising campaign designed to encourage adoption and regular use of the mobile fintech offerings.
Through the new fintech platform, KMSB will provide micro-lending services to government, state-owned enterprises and member organizations registered with BPJSTK. As part of managing the pensions and health benefits for contract and delivery driver members, BPJSTK serves as the social security agency that administers retirement and pension plans on behalf of Indonesian government entities and about 600,000 small- and medium-sized businesses (SMBs), with the combined total of 50 million individual members.
The mobile fintech platform is planned to be eventually introduced to all BPJSTK members, as well as to affiliated organizations, such as Mentalku, which supports the motor vehicle license administration, and Sehatku, a medical clinic organization network. Members will also be able to access Logiq’s PayLogiq™ e-Wallet and GoLogiq™ hyper-local food delivery mobile platforms.
Logiq announced last week it has partnered with Mentalku, the exclusive government-licensed provider of psychological testing required for driver license applications and renewals in Indonesia, to offer a mobile payment option for Mentalku’s testing services.
Logiq and the principals of KMSB who own Mentalku are planning to offer a new ‘SuperApp’ that incorporates microloans for BPJSTK members, driver license tests thru the app, fees paid thru the Logiq e-Wallet, and ancillary services, such as telemedicine and consultations.
Logiq and KMSB plan to complete the official launch of the new mobile fintech platform for drivers of Garda Digital Indonesia by the fourth quarter of 2021.