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FROM being called ‘worse than loan sharks,’ to more neutral reviews saying that it really is nearly impossible to have that loan through the web site, UangTeman is surviving, as well as, apparently thriving.

Talking recently to Digital News Asia (DNA) in Jakarta, its cofounder and ceo Aidil Zulkifli (pic above) admits as a free promotional tool that he struggled with the bad publicity at first, but managed to use it.

“We are now actually nine months old, operating fast and doing pretty much. As being a startup, you shouldn’t be afraid of bad press; you simply should find out just how to handle it,” he claims.

UangTeman, or ‘Friend’s cash’ in English, began operations in April 2015, and contains been growing 20% to 25per cent month-on- month since, relating to Aidil.

The monetary solutions technology (fintech) startup dispenses pay day loans to individuals in need: Little, short-term loans to greatly help borrowers endure with their day-to-day requirements until their next paycheque.

Borrowers usually takes as much as a optimum of Rp2 million (US$148.60) and no less than Rp1 million (US$74.20) the time that is first but are charged a 1% rate of interest each day for the following 18 to 25 times.

Even though many begin to see the 1% day-to-day rate of interest as a lot of, Aidil contends that this is actually the only cost that clients need certainly to deal with – there are no management or processing costs.

He keeps the attention price is “relatively okay” compared aided by the danger the faces that are startup day.

“We are not a bank; we try not to gather funds from individuals. The amount of money we provide to your clients arises from our personal ‘friendly’ pockets,” declares the Singaporean-born lawyer that is former.

He also stresses that UangTeman is certainly not contending aided by the banks, however with the mortgage sharks and lenders that are informal the marketplace.

“The loan roof will increase to Rp3.5 million (US$260) therefore the rate of interest is certainly going down as soon as the debtor shows good credit behavior and it has lent once or twice currently.

“The almost all individuals in Indonesia are surviving from paycheque to paycheque; when they require more money, UangTeman are here for them, like a buddy.

“It is about making a huge impact – it is about building a company where in the one hand, you possibly can make cash, yet regarding the other, you may make a good effect on society,” he adds.


the primary challenge for almost any financing company is an extensive back ground check for the possible borrower. UangTeman is determined by technology because of this type or form of research, relating to Aidil.

“We have our personal technology and algorithms which will perform some initial back ground check using lots of information points,” he adds.

While stressing that security and privacy will also be crucial for business, he contends that keeping a level that is low of loans may be the objective. As well as in this, UangTeman relies greatly from the technology it’s built.

Clients will discover away whether their application is authorized or otherwise not immediately. For those who are authorized, UangTeman’s operations group will continue steadily to monitor to make certain there isn’t any fraudulence.

“Once everything is authorized, clients will get the amount of money inside their bank reports in three to a day,” Aidil promises.

Although the loan quantity will not seem like much, this indicates to suit the needs of the prospective market UangTeman is serving.

From the survey that is internal% of the customers are micro business people; 25% utilize the loan for academic function; and around 20% make use of it to pay for medical center and medical bills, based on Aidil.

Back again to essentials

The theory behind UangTeman would be to provide under-banked people use of financial loans, specially to tiny and short-term loans that will provide their basic and day-to-day requirements.

“The target audience is simply those who usually do not credit that is own. They’ve basic bank records, however the banking institutions aren’t lending them cash simply because they carry a risk that is high” says Aidil.

A current credit file on MSMEs (micro, tiny and medium enterprises) by industry regulator Bank Indonesia indicated that MSME loans account fully for 18.5percent of banking institutions’ total credit circulation.

But regarding the total that would go to MSMEs, medium loans make-up 48.1%, tiny loans have 28.5% share, and micro loans make-up 23.5%. A micro loan is one with no practical minimum up to a maximum of Rp50 million (US$3,718) by Bank Indonesia’s definition.

Sustainable business design

Although UangTeman has guaranteed an undisclosed round that is seed-funding investors such as Alpha JWC Ventures, Aidil claims the business enterprise model is sustainable and that the startup may survive without relying greatly on such outside assets.

However the seed investment will be necessary to measure its operations and achieve more metropolitan areas and suburbs within the national nation, and also to start one or more contact centre workplace in each town it runs in.

“We have now been earning money from Day One, with your very very first clients, and I also think that is additionally just just just what attracted our investors,” Aidil claims.

He additionally contends that the investors had been keen to spend in UangTeman because he could be perhaps maybe maybe not through the services that are financial.

“If you need to alter and disrupt the economic solutions industry, you need to originate from the surface, I think.

“That means, you are able to see various ways to produce the exact same items; interruption sometimes happens whenever we cross each other’s industry,” he adds.

Aidil claims that UangTeman would probably pursue Series-A money year that is early next claiming it currently has investors prepared.

The program now could be to teach industry, particularly folks from suburban areas, in addition to to open a contact centre workplace in western Java.