It is already painstakingly clear that there is a lack of basic financial services for MSMEs in emerging markets, more so in Indonesia, possibly the largest MSME market in the world, contributing almost 60% to their GDP, accounting to 99% of all business and 89% private sector employment. These are by no means small numbers. Consider emerging markets globally and you get the picture of the massive disconnect.

Having local founding members in the team has provided Tokoin with an innate understanding of what exactly is plaguing the Indonesian MSME sector and what needs to be done in order to solve it. The obvious answer, looking at how we’ve progressed in the last 10 years is Technology! Given its extensive exposure to all markets, especially emerging economies, it would suffice to say that a technological solution would bring an end to the woes of MSMEs.

That being said, technology alone cannot solve this as there are many barriers to entry in a market where the ones affected have for far too long, accepted things as they are. Along with technology, the right partnerships (local and international) would be key to assisting MSMEs to grow and possibly flourish, improving the economy as a whole.

The Tokoin team understands this very well and in addition to developing their platform for MSMEs to create a verifiable digital identity, they are partnering with organizations who are actively supporting this endeavor and willing to provide Tokoin’s users access to their services. Garnering the support of some big names in Indonesia, the stage is being set!

Government Partnerships in Indonesia

Partnership with Ralali — The largest B2B marketplace for MSMEs

Partnership with Pasarpolis — Indonesia’s Leading InsurTech Company

Partnership with Sahabat UMKM — Indonesian non-profit organization supporting MSMEs

About Pasarpolis

Founded in 2015, PasarPolis is the leading InsurTech company in Southeast Asia and the only company jointly invested by three Unicorns in Indonesia, Go-Jek, Tokopedia, and Traveloka working to enable consumers to be protected. Offers customized tailor-made insurance products via B2B strategic partnerships and direct to consumers. Products extend beyond traditional insurance to address consumer needs across multiple tech ecosystem. Leverages cutting-edge technology to redefine insurance.

Tokoin and Pasarpolis

MSMEs lack access to insurance, which is vital to their stability and growth. Partnering in February 2019, Tokoin and Pasarpolis intend to close this gap. MSMEs using the Tokoin platform will have a valid digital identity, create their own unique digital ledger, build their credit score, increasing their reputation and creating a trusted profile acceptable by all stakeholders. Using this information, Pasarpolis, our InsurTech partner will be able to provide customized insurance products to MSMEs on the Tokoin platform, assisting their development and allowing for economic inclusion.

About Sahabat UMKM

Sahabat UMKM, which translates to ‘Friends of MSMEs’ is a community that brings together MSMEs and Entrepreneurship Professionals. With the principle of positive communication and mutual development, Sahabat UMKM becomes a means of delivering knowledge and a forum for interaction for business people to contribute to one another, deliver thoughts, share experiences in building their business and developing networks/connections.

Tokoin and Sahabat UMKM

Sahabat UMKM is a non-profit organization that currently supports +3000 MSMEs in growing its business across Indonesia. Along with government support, they aim to help their members in this competitive environment through mentorships, forums, and events. The platform gives MSMEs access to business professionals and facilitates meetings with other MSMEs to contribute, exchange information, convey ideas, knowledge, and experience in developing their business. Sahabat UMKM also aims to increase the digital literacy of MSMEs and their partnership with Tokoin in February 2019 is a step in that direction. Not only will their members be given access to the Tokoin ecosystem and vice versa, but they will also be provided with business training to assist their economic growth.

Why are these partnerships Indonesia specific?

Launching in Indonesia with the intention of minimizing the credit gap in one of the most complex MSME markets in the world would establish Tokoin’s success resulting in partnerships regionally and globally, for future expansion. Having an experienced local team has no doubt provided Tokoin with some leverage when speaking to established companies in Indonesia, leading to partnerships with some big names who are crucial to getting the right exposure and adoption in the market.

It is also important to mention that companies partnering with Tokoin will increase their customer base as a result of the association with Tokoin’s web of connections. If you’re interested in partnering with Tokoin, please email us at hello@tokoin.io.