Special Reports / November 2017

The Working Koin

Indonesian have a problem in putting their money to work, as most are still hesitant to invest in other’s business endeavor. But with the emergence of fintech companies that facilitates investment to business owners and cater to the needs of small business in the country, Indonesian are now ready to “democratize their money.”  By Gilang Al Farisi

Fintech has emerged and has quickly flourished as a new industry in Indonesia, with the abundance of digital startups a testament to the potential the industry brings to the national economy. One digital company that has met with success is Koinworks, a P2P lending service suited to the needs of small businesses and startups.

The P2P company not only meets the needs of the booming startup businesses that have blossomed with the arrival of the digital age, but it also serves as a platform where Indonesians can start to learn about investing their money.

The founder of Koinworks, Benedicto Haryono, noted a lack of enthusiasm among Indonesians for investing their money in other financial instruments. He saw this as an opportunity to not only tap into the unused funds people store in banks, but also to educate his countrymen in the benefits of investing their money in a worthwhile endeavor.

Through Koinworks, people can invest in companies or individuals of their choosing in a transparent process. As the motto of the company states: “Democratizing your money.” Benedicto aims to do just that and allows those using the services of his company to put their money where they want, with the capacity to monitor their investment.

Although many P2P lending companies have established themselves in the market, most have yet to register with the Financial Services Authority (OJK). Koinworks is the first of the digital-based companies to be officially registered under the watch of the institution.

That was no easy matter, as there were no clear regulations of what a fintech company needed to report or do in order to be licensed by the institution. Koinworks has done the hard work and laid the path for other fintech companies to get regulatory backing from the OJK.

Benedicto notes that most government financial institutions already support the growth of the fintech industry, but due to the lack of promotion and education about what a fintech company is, the industry has largely been overlooked. With time and a lot of education, Benedicto is confident that the industry will take off.