Why do you have to realize the Potential of MSMEs with Fintech? with the example of food Chips are a very common food in Indonesia, can be turned into a booming product. With an initial capital of only 15 million rupiah in 2010, sales have exceeded a turnover of billions of rupiah per month. That is the story of Maicih spicy chips produced by one of the potentials
MSMEs (Micro, Small and Medium Enterprises) Indonesia.
MSMEs cannot be underestimated. During the 1998 monetary crisis, when many large companies collapsed, MSMEs were able to survive and become the driving force of the economy. According to data from the Ministry of Cooperatives and SMEs in 2017, 96.87% of the workforce in Indonesia works in the MSME sector. In addition, based on data from the Central Statistics Agency (BPS), the contribution of MSMEs to
the economy is also quite large, reaching 61.41% with the number of MSMEs almost reaching 60 million units. The potential for MSMEs to grow is currently also supported by technological developments, for example social media which makes promotion easier and more and more e-commerce sites to market products.
Fintech, a Capital Search Facility for MSMEs in the midst of opportunities to establish MSMEs, there are still various problems that must be faced, one of the most important is access to capital. The presence of fintech (financial technology) companies such as online peer-to-peer lending (P2P lending) should be utilized by MSME businesses to realize their work. P2P lending lending is a forum that brings together people who need loans with people who are willing to provide loans. The process is faster and easier. Parties wishing to borrow money only need to upload the requested documents and do not need to prepare collateral.
To be on the safe side, the Financial Services Authority (OJK) issued regulations regarding technology-based lending and borrowing, including various requirements, licensing, and supervision of institutions providing P2P lending platforms (POJK Number 77 of 2016). OJK has also made a list of P2P lending platforms that have pocketed a permit. OJK. P2P lending is also present as an investment option for non-MSME business people by becoming lenders or borrowers of money. Based on OJK data in June 2018, there were 123,633 lender entities registered with domestic P2P lending. When MSME owners choose P2P lending, they should pay attention to the amount of administrative fees charged by the platform (interest fees, late payments, etc.) and loan tenors (30 days to 24 months). P2P lending is more suitable for the short term, because costs will accumulate in the long term. Most importantly, research the existing fintech and adjust it to the financing needs of MSMEs.
Supporting MSMEs by Investing in P2P Lending Platforms For lenders, investing in P2P lending can provide profitable returns while contributing to driving the growth of national MSMEs. Based on Tirto.id’s research, the average return on P2P Fintech Lending is quite high for the retail scale investment category. Investree, for example, sets a loan grade that must be paid by borrowers of 14-20 percent per year for the business loan category. Another advantage is that only a little capital to invest. Starting from IDR 100,000, we can already invest. To anticipate the risk of default, the P2P lending platform helps carry out risk analysis. Investors who provide loans can diversify loans. Even though it has risks, the existence of P2P lending services has the potential to boost the economy, especially because it allows this service to open access to unbanked groups of people (not having access to banking services).