Arthur Adisusanto (Country Head), Annette Aprilana (Sustainability & ESG Lead Grup), Errik Jaya Tirta (AVP Brand & Communications)
Modalku has always been committed to enhancing financial inclusion in Indonesia by providing underbanked and underserved SMEs with business financing. In line with our company vision and mission, we also promote responsible business and strive to implement ESG and sustainability principles in our core business. As a signatory to the UN Global Compact, we continue to seek a balance between economic, environmental and social factors in our activities.
Modalku is the pioneering digital financing platform that connects borrowers (SMEs) who need working capital loans for their business, with lenders. Modalku has been operating in Indonesia since 2016 and is also present in multiple countries such as Singapore, Malaysia, Thailand and Vietnam well known as Funding Societies. Modalku Group has provided funding with a cumulative total of IDR 48 trillion and 5,1 million transactions for businesses across all operating countries.
The ESG practice in Modalku has been integrated with the core business through various operational processes in Modalku, one of which is by having an ESG risk assessment as part of the credit assessment process for SMEs. This assessment considers the environmental and social risks of potential borrowers based on Modalku's ESG risk assessment framework. Modalku has implemented various initiatives, including providing business financing opportunities that can be accessed by women entrepreneurs and ecopreneurs, increasing employee education regarding the sustainability ecosystem in financial institutions, and educating Modalku borrowers and lenders about the importance of sustainable development. Modalku also wants to increase funding allocations to industries that are in line with Modalku’s three sustainability themes, namely climate change, circular economy, and SDG (Sustainable Development Goals) and Inclusion.
Through its ESG practices, Modalku has identified Goals 5 (Gender equality), 8 (Decent work and economic growth), 9 (Industry, innovation & infrastructure), 12 (Responsible consumption and production) & 17 (Partnership for the goals) as SDGs that align the most with Modalku’s business practices and ESG strategy. In line with Goal 5 of the SDGs, Modalku encourages gender equality in the workplace through its internal Inclusion, Diversity & Equity (IDE) initiatives and in parallel supports women's entrepreneurship by funding women-owned SMEs. Modalku is also working to support Goals 8 & 9 of the SDGs by driving economic growth and innovation, increasing SMEs' access to financial services, and promoting financial inclusion for underserved communities in its funding activities. Furthermore, as a company that partners with SMEs, Modalku is in a unique position to encourage the implementation of responsible consumption and production (Goal 12) practices in SMEs through its sustainability initiatives. Lastly, through Modalku’s partnership with SMEs and other financial institutions, Modalku aspires to continuously support the advancement of all 17 Sustainable Development Goals in Southeast Asia.
Rizki - Owner Production House Kita (Borrower Modalku), Sales Representative Modalku
Supporting MSMEs Business Advancement
We understand that the sustainability journey for SMEs may not be the same as for large corporations. There is a push factor for SMEs to adopt sustainable practices, especially if they are part of the supply chain of multinational companies, or large corporations. Part of Modalku’s efforts to support SMEs in their sustainability journey is to identify their needs in transitioning to more sustainable practices. We are keen to support SMEs that are part of the supply chains of large corporations, whether they are the distributors or suppliers.
Modalku facilitates SMEs that are part of the business ecosystem of large corporations, through their supply chain financing solutions, by helping the network of suppliers and distributors of large corporations get paid promptly and keep a healthy cash flow.
The aim is to support SMEs by providing business financing to boost and increase their revenue. Where large corporations can have access to traditional financial institutions that focus on longer-term, secured financing (such as banks), Modalku allows SMEs to obtain financing without needing collateral, and hence gain quicker access to credit. Some of the financing solutions available for SMEs include:
Modalku is licensed and supervised by OJK
Learn more: Modalku.co.id