Islamic peer-to-peer financing platform Alami Fintek Sharia (ALAMI) has partnered with Bank Syariah Mandiri to provide SME financing nationwide.
“This is the beginning of many important collaborations to support our MSMEs in a Shariah compliant way,” Dima Djani, CEO and founder of ALAMI, said of the partnership with Indonesia’s largest Islamic bank.
The collaboration is part of the National Economic Recovery (PEN) plan, an initiative by President Joko Widodo’s administration to cushion the economic impact by the global coronavirus pandemic. The program includes placement of government funds, guarantees, state capital participation and government investment.
ALAMI, one of a handful of peer-to-peer lending platforms, has been appointed as a distributor of the PEN Fund to help support SMEs which account for about 60% of Indonesia’s GDP and 97% of the domestic workforce, according to statistics.
In order to expedite disbursement of much-needed funds to MSMEs across the Republic of some 260 million-strong population, the Indonesian government and financial institutions have ramped up their digital transformation resulting in new digital offerings as well as partnership with fintech companies such as that between ALAMI and Bank Syariah Mandiri.