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Oikocredit announces EUR 2.4 million loan to Validus to support SMEs in Indonesia

Oikocredit announces EUR 2.4 million loan to Validus to support SMEs in Indonesia

27 June | 2024

First fintech financing in Southeast Asia will support underserved small and medium enterprises

Amersfoort, The Netherlands and Jakarta, Indonesia – Social investor Oikocredit and Validus Group, a Singapore-based digital financing platform, have partnered to provide small and medium-sized enterprises (SMEs) in Indonesia with accessible and affordable financing to address the country’s significant SME funding gap. The loan of EUR 2.4 million, which matures in 2027, will enable Validus’ Indonesian subsidiary, Batumbu, to expand its reach and support more local businesses.

Validus is a new Oikocredit partner. The financial technology company (fintech) uses proprietary data and artificial intelligence to improve financing across the underserved SME sector with the aim of increasing productivity and savings. Since it was set up in 2015, Validus has disbursed more than USD 3.5 billion in loans to small businesses across Southeast Asia.

Small businesses in Indonesia, as in other markets, have a hard time accessing funds from commercial banking institutions for their working capital needs, largely because of data and risk issues. Validus helps close the gap with financial products tailored for SMEs and an alternative credit underwriting model.

This is Oikocredit’s first fintech loan in Southeast Asia. The collaboration underscores both organisations’ common commitment to responsible finance and inclusion. It empowers underserved Indonesian SMEs that are part of larger corporate supply chains in the fast-moving consumer goods, retail and pharmaceutical sectors while also promoting business growth and sustainable economic development across Indonesia.

Dave Smit, Director of Impact & Investments, Oikocredit said: “We are pleased to partner with Validus Group in support of its extensive base of Indonesian SMEs. Validus’ technology and data-driven strategy for SME lending can be a game changer. By enabling Validus and  Batumbu to extend their lending capacity, we can together support more small businesses to grow and thrive, contributing to Indonesia’s economic development and that of the people of Indonesia." 

Reza Perazi Armadi, Director and Deputy CEO of Batumbu, said: “The partnership with Oikocredit marks a significant milestone in our efforts to bridge the SME financing gap in Indonesia. With Oikocredit’s support, Batumbu will be better positioned to offer tailored financing solutions to underserved SMEs across multiple provinces of Indonesia, where banking presence is often thin, driving financial inclusion and fostering entrepreneurship. Together, we aim to create a lasting impact on the Indonesian economy." 

MSMEs are the backbone of Southeast Asia's economy, accounting for 97% of all businesses and employing over half of the workforce. Despite their critical role, many SMEs face significant challenges in accessing formal financing, with the financing gap reportedly estimated at over USD 300 billion. The situation is particularly acute in Indonesia, with many small businesses struggling to secure the funds needed for growth and development.

The World Bank’s International Finance Corporation estimates Indonesia’s MSME financing gap at USD 234 billion. The IFC has previously estimated that up to 54 percent of SMEs are interested in obtaining a bank loan.

About Validus

Validus Group is a leading digital financing platform for SMEs in Southeast Asia, with headquarters in Singapore. Founded in 2015, Validus leverages data analytics and technology to provide efficient, affordable, and accessible financing to small businesses. Through its subsidiaries, including Batumbu in Indonesia, Validus has disbursed over USD 3.5 billion in loans to date, significantly contributing to the economic growth and resilience of SMEs across the region.

About Oikocredit

Social impact investor and worldwide cooperative Oikocredit has nearly five decades of experience funding organisations active in financial inclusion, agriculture and renewable energy.

Oikocredit's loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia and Latin America to improve their living standards sustainably.

Oikocredit finances more than 520 partners, with total development financing capital outstanding of EUR 1,136.1 million (at March 2024). For more information, visit

Note for editors

For more information or to request an interview, please contact: Viviana Cordero, Communications Business Partner, Oikocredit International, telephone: +31 33 422 4040, email: 

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