Batumbu Approved For Digital Financing License

Batumbu, the Indonesian subsidiary of Southeast Asia-based small business financing platform Validus, has now been approved as a licensed digital financing platform, according to a press release.

The Indonesian Financial Services Authority (OJK) granted the license after a “detailed and thorough” licensing process, and the approval reflects “strong commitment to empower Indonesian micro, small, and medium enterprises’ (MSMEs’) growth through sustainable and fast financing.”

Jenny Wiriyanto, CEO of Batumbu, said the company would “be ramping up efforts to improve financing access and financial literacy within business ecosystems across provinces in Indonesia,” and the team is looking to accelerate financial inclusion for small companies and “drive a more advanced and resilient Indonesia.”

“Our success in obtaining the license further validates our robust technology, processes and innovative business model,” Wiriyanto said, according to the release. “We will be building on our strategic partnerships to expand our reach and expect to boost lending to more MSMEs in local supply chains.”

The release says Batumbu, which formed in 2019, has thus far disbursed $207 million. During COVID, the release says Batumbu worked with small businesses pivot to the needs of the times and position themselves for recovery.

This is now the third time Validus has been approved as a financial platform, with the other two being in Singapore and Thailand, the release says.

Validus often works with developing economies and businesses, including Vietnam. In that country, 97 percent of the businesses have fewer than 100 employees and often do not have banking services.

Validus Co-Founder Nikhilesh Goel said the reason was many of them lacked financial literacy and necessary credit and collateral records in order to borrow from traditional banks and lenders. He said the FinTech landscape in Vietnam also hadn’t really gotten off the ground yet. However, that’s changing as digital payments begin to ramp up there, just as they are in other parts of the world.