Introduction

I still remember the energy crackling through the halls in Makassar during Fintech Lending Days. For three days in late June 2022, the city became a living lab for alternative financing, where Indonesia’s micro, small, and medium enterprises (MSMEs) met face to face with peer-to-peer (P2P) lending providers. Organized by the Indonesia Joint Funding Fintech Association (AFPI), the event aimed to demystify digital lending and show MSMEs how to tap into responsible financing—quickly, transparently, and at scale.

Why This Matters for MSMEs

MSMEs are the beating heart of Indonesia’s economy. According to the Ministry of Cooperatives and SMEs (KemenkopUKM), by March 2021 there were 64.2 million MSMEs, contributing 61.07% to GDP—or roughly Rp8,573.89 trillion—absorbing 97% of the total workforce, and accounting for 60.42% of national investment. Yet too many still hit a familiar wall: access to credit. Limited data, uneven risk management readiness, and a lack of tailored products often keep promising businesses out of traditional finance. That’s where P2P funding steps in, offering a complementary path for productive, proactive MSMEs to expand their operations.

Inside Makassar’s Fintech Lending Days

With the theme “Harnessing Alternative MSME Financing in Makassar Through Joint Funding Fintech,” the Makassar edition blended on-site and online participation: 160 attendees joined in person, with more than 200 MSMEs and students from South Sumatra tuning in virtually. AFPI curated two flagship agendas—UMKM Business Matching and UMKM Visit—to help lenders and entrepreneurs sit down, compare notes, and co-design financing solutions that reflect real on-the-ground needs.

The numbers tell their own story: 46 MSMEs under HIPMI Makassar participated in Business Matching with fintech lenders, while 15 South Sulawesi MSME booths enlivened the Exhibition & Talk Show. Participating providers included a cross-section of AFPI’s funding and supporting members such as Kredit Pintar, Privy, UKU, Tongdun, AdaPundi, Asetku, Modal Nasional, Easycash, and Pefindo—each bringing distinct capabilities to underwriting, KYC, risk analytics, and disbursement.

What Entrepreneurs Are Saying

For many participants, the event shattered lingering myths. “Fintech Lending Days is a smart way to introduce Joint Funding Fintech to MSME players like me so we can understand financing in more detail. Until now, we only knew fintech lending as ‘online loans,’” shared Jumria Yulindah, owner of ShiviaCraft, who joined the showcase.

On the borrower side, speed and simplicity stood out. “The loan application process isn’t complicated—it’s easy and fast. The limits offered really help my day-to-day operations become more productive,” said Hasrullah Hamseng, a grocery and vegetable shop owner in Makassar and a borrower with Ringan.

A Sector on the Rise

AFPI reports that the Joint Funding Fintech industry has grown rapidly in recent years. By the end of 2021, 102 licensed and OJK-supervised providers—spanning productive, multipurpose, and sharia segments—were members of AFPI. Cumulative disbursements reached Rp256 trillion by late 2021, with a striking 112% year-on-year growth in 2021, more than quadruple the 25% pace seen in 2020. This momentum reflects a maturing ecosystem where technology, data, and partnerships are translating into broader credit access.

Beyond Capital: The Digital Shift

Financing is only one part of the MSME transformation. Digital enablement—from e-payments to e-commerce—multiplies the impact of credit. In May 2021, just about 21% of MSMEs had gone digital. Adoption of QRIS and other cashless tools remains a crucial step to widen market reach, streamline transactions, and build the data trails that ultimately unlock better loan terms.

From Makassar to Medan—and Beyond

AFPI’s commitment doesn’t end in South Sulawesi. After the success of Makassar’s event, the association pledged to host Fintech Lending Days annually, with the next stop planned for Medan, North Sumatra. The strategy is straightforward: take Business Matching on the road, scale partnerships with organizations like HIPMI, and meet MSMEs where growth is strongest. The goal is to foster recurring, structured dialogues that convert into real financing and measurable business outcomes.

How AFPI Fits In

As the official association for P2P lending platforms in Indonesia—appointed by the Financial Services Authority (OJK) via letter No. S-5/D.05/2019—AFPI acts as a bridge and a safeguard. It convenes industry players, sets conduct standards, and provides user protection for both borrowers and lenders. AFPI also operates a complaint desk reachable via call center 150 505 (toll-free, Monday–Friday 08:00–17:00 WIB) and email at pengaduan@afpi.or.id.

Looking Ahead

The path forward is pragmatic: keep building MSME literacy, clarify product-market fit, and ensure responsible lending practices—from transparent pricing to fair collection. On the MSME side, doubling down on digital adoption, bookkeeping, and risk management will make credit cheaper and more accessible. Events like Fintech Lending Days do more than trade business cards—they align incentives, reduce information asymmetry, and ultimately fuel Indonesia’s next wave of inclusive growth.

Practical Steps for MSMEs

• Map your financing needs: working capital, inventory, equipment, or market expansion.
• Prepare clean financial records and cash-flow projections.
• Adopt QRIS and digital sales channels to build transaction histories.
• Compare lenders’ terms: interest, fees, tenors, and collateral (if any).
• Start small, repay on time, and build your credit profile.

Contact and Resources

Learn more via AFPI member platforms and local business associations like HIPMI to join the next Business Matching.

AFPI complaint desk: 150 505 (Mon–Fri 08:00–17:00 WIB)

Email: pengaduan@afpi.or.id

Writer: Aditya Wardhana