Batumbu granted full digital lending license from OJK

By Leandra Monteiro

Validus’ Indonesian subsidiary Batumbu has received regulatory approval to operate as a licensed digital financing platform from the Indonesian Financial Services Authority (OJK).

OJK undertakes a detailed and thorough licensing process, following which the approval is given. This recent development reflects Batumbu’s aim to empower Indonesian micro, small, and medium enterprises’ growth through sustainable and fast financing.

Jenny Wiriyanto, CEO of Batumbu, shared, “Our success in obtaining the license further validates our robust technology, processes and innovative business model. We will be building on our strategic partnerships to expand our reach and expect to boost lending to more MSMEs in local supply chains.”

“We’ll also be ramping up efforts to improve financing access and financial literacy within business ecosystems across provinces in Indonesia. The Batumbu team is dedicated to accelerating financial inclusion for MSMEs, to drive a more advanced and resilient Indonesia” he added.

Batumbu, since its starting operations in 2019, it has disbursed over S$207 million and is among the top FinTech lending platform for MSMEs in Indonesia. It is the Indonesian arm of Southeast Asia’s leading SME financing platform Validus.

“We thank the OJK team for playing an instrumental role in ensuring the responsible long-term growth of the industry. As a leading regional fintech, Validus shares the same values and goal in addressing the financing gap, essential for the growth of MSMEs and the local economy,” Wiriyanto said.

“Our ‘glocal’ structure gives us a strategic advantage in implementing best practices, strong credit models and governance framework across our markets,” said Validus’ Co-founder and Executive Chairman Ajit Raikar.

Validus has received regulatory approval in three markets across Southeast Asia to date. The FinTech is also licensed in Singapore (Validus Capital) and Thailand (Siam Validus). Since its launch in 2015, Validus claims it has facilitated over S$775 million in SME financing across Singapore, Vietnam, Indonesia, and has just begun operations in Thailand.