AwanTunai‘s collaboration with Sayurbox, a sister company with similar visions to help micro-SMEs prosper, aims to digitize and optimize the agricultural supply chain and provide access to affordable financing for the 19 million MSME farmers in Indonesia, even to those without bank accounts. AwanTunai and SayurBox plan to provide access to low-cost invoice financing starting with 5’000 MSME farmers in Indonesia. AwanTunai and SayurBox are receiving support from SCBF (Swiss Capacity Building Facility) in a partnership to fund technical assistance for financial service providers to develop financial services in developing countries.
AwanTunai’s support in this collaboration is to develop data collection and digital assessment infrastructure through funds provided by SCBF. The initiative aims to develop bank accepted credit risk management processes that are suitable for smallholder MSMEs. It is hoped that the distribution of infrastructure among agricultural chain partners can open up more SMEs farmers to access formal bank funded financing. AwanTunai and SayurBox are committed to achieving their vision of advancing micro-SMEs, especially in the agricultural sector. This collaboration allows both parties to complement their goals in improving welfare and financial inclusion for all Indonesian MSMEs farmers.
AwanTunai Chief of Officer and Co-Founder, Dino Setiawan said: “Most of Indonesia’s micro and SME farmers do not have access to affordable working capital or fair downstream supply chains, and with limited to no access to formal credit support, capital, technology, and accessibility are adversely impacting the economic stability of farmers. Thus, this partnership will impact on the welfare of farmers across Indonesia.”
There is a greater need for working capital to cope with changes in cash flow for traders as well as a need to increase buffer stocks in case of occasional logistical supply disruptions. To overcome this, AwanTunai together with SayurBox will provide access to affordable finance for SME farmers so that they can invest to reduce costs and increase the reach of their produce.
Sayurbox Chief Financial Officer, Arif Zamani adds: “Sayurbox is very pleased to be working with AwanTunai in supporting Indonesia’s growing agricultural industry. Agriculture is one of the main sectors of the Indonesian economy that absorbs most Indonesian workers. AwanTunai and SayurBox’s step is part of our commitment to significantly improving the welfare and living standards of Indonesian farmers, today and beyond.”
In Indonesia, financing for smallholder MSMEs has its many challenges due to suboptimal payment performance. Problems in crop management, loan funds, and crop yields make financing challenging to apply sustainably. AwanTunai is collaborating with SayurBox as an agricultural off taker to develop sustainable and affordable financing that will speed up the cash flow cycle on receiving funds from harvest sales, and open access to better inputs in the form of seeds, fertilizers, and other materials for farming. Working closely with supply chain intermediaries, AwanTunai and SayurBox believe a sustainable financing solution requires the minimal risk of default.
MSME farmers working with SayurBox can access affordable financing through a simple process of registering with their national identity cards (KTP).
PT SimpleFi Teknologi Indonesia (AwanTunai) is a supply chain SaaS system integrated with inventory purchase financing for the traditional FMCG & staple food trade in Indonesia. AwanTunai deploys a supply chain SaaS system for suppliers. This system is integrated to a micro merchant mobile app that can order and finance inventory purchases digitally. The system enables low-cost financing for Indonesia’s unbanked micro-SMEs, by allowing AwanTunai’s partner banks to fund these micro-SMEs. Founded by Dino Setiawan, Rama Notowidigdo, and Windy Natriavi.
Sayurbox is a grocery delivery service that lets you choose and buy over thousands of high-quality fruits, vegetables, meats, and other fresh produce at affordable price. Our farm-fresh food sourced directly from local farmers and producers in Indonesia and delivered right to the convenience of your doorstep. Every day, we work with local farmers to curate boxes of fresh produce. So, there’s no middleman. Price is lower and the quality is the same as what you’d get at the supermarket and traditional market.
About Swiss Capacity Building Facility (SCBF)
SCBF is a public-private development partnership (PPDP) and its intervention strategy is to give grants to technical assistance (TA) providers to work with partner financial institutions (PFIs) to develop and upscale client-centred financial product channels and services.
The financial products and services include savings, loans, insurance, digital financial services, or financial education, among others. Thereby increasing access and usage to SCBF’s end-clients; low-income people, smallholder farmers and small-scale entrepreneurs to improve their livelihoods.