Telkom Indonesia - GUI Micro SME Loans Application

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Name of Organization / Company: Telkom Indonesia, Jakarta, Indonesia
Category: F55 - F62 - Award for Innovation in Apps > F62. Award for Innovation in Social Apps

Entry Title: GUI Micro SME Loans Application


Indonesia is a large country in South East Asia with 262 million population. There are 57 million Micro Small Medium Enterprises (MSMEs) in Indonesia having an important role in economic development as they contribute 60% of Indonesia's total GDP. However, there are still many constraints have held-up MSMEs growth, mainly in accessing the capital, competence, and commerce. Therefore, Indonesian government has launched program called Kredit Usaha Rakyat (KUR) or Micro SME Loan Program. In 2017, Ministry of Cooperatives & MSMEs aimed to achieve IDR 110 trillion of KUR must be distributed to MSMEs in Indonesia.

Bank Artha Graha (BAG) is one of the KUR Financial Institution Organizer which has 113 Office Networks spread over 38 Cities in 23 Provinces. In 2017, BAG allocated IDR 500 billion for KUR but found difficulties to distribute all of fund because of limitation of branch offices number to reach debtors. Develop new branch office is not suitable option because great amount of cost and time will occur.

Considering those issues, Telkom developed E-Form, a mobile application based on android to support acceleration of KUR submission process through digitalizing Forms of KUR, supporting documents (Photo, ID Card, Family Card, Business Information, details of joint responsibility), and electronic signature as extension of Bank channel to reach and provide wider capital access for MSMEs. It can be operated in two modes; Online and Offline. Offline mode enables the process of inputting data even without internet connection or when the users are in the remote area.

Basically, it digitalized 3 forms of KUR’s application which are the mandatory forms that the debtor must complete.

Through the apps, BAG and Central Bank of Indonesia will assess those 3 forms. All processes are the same with the manual flow, but with the apps, now it could be done digitally. They are also monitored and shown by the dashboard which has been developed together with the apps, which can be accessed by all the team on behalf of BAG. E-Form was developed in December 2016, undertook testing and approval process by Otoritas Jasa Keuangan (Financial Service Authority) in June 2017 and has been applied since July 10th, 2017.

Further development has been applied to E-From to accommodate MSMEs needs, called Gudang Data UKM MSMEs Data warehouse) Indonesia or GUI. GUI Apps contains several modules: Survey Modul for KUR and Value-Added Reseller (VAR) Modul for offering Wifi to the debtor. By this development, this apps becomes more complete and comprehensive.

Implementation of GUI has improved BAG performance radically. Number of debtors grew from 1000/month to 5000/month. KUR distribution achievement was remarkable, recorded IDR 564.28 Trillion, an achievement of 112.9% from target. KUR distribution growth jumped at 633.8%, IDR 76.9 Trillion in 2016 to IDR 564.28 Trillion in 2017). BAG is planning to distribute IDR 1.2 billion KUR in 2018. Currently, BAG is progressing 57,210 debtor candidates through GUI Apps.

Based on revenue model, Telkom obtained revenue sharing from GUI implementation, recorded at IDR 289.150.000 in 2017. There is 57,210 debtors in GUI process, accounted potential revenue around IDR 1.43 billion. GUI App also can be applied to another bank which has same characteristic with BAG which are: limited branch offices and “Buku 3” classification. Refer to these bank characteristic, total amount of IDR 1.346 trillion KUR was distributed in 2017, with amount of IDR 25 million per debtors. Hence, potential revenue from GUIS is IDR 1.346 trillion per year.

GUI app is giving great contribution to MSMEs, especially in access to capital. GUI recent advancement, helps MSMSEs going online by providing broadband internet access menu. GUI apps has gathered 83.466 data of MSEMs in “Qualified Bank Data” classification. These data, later, can be profiled and managed so they can be useful for banks, government, or other associations.