BTN signed a memorandum of understanding (MoU) with KoinWorks on Thursday, under which the bank has agreed to channel the funds through a supply chain financing mechanism to borrowers in the property sector, including but not limited to property suppliers and contractors. 

Borrowers will be able to access loans of up to Rp 1 billion. Those who have complete documentation can receive the loan within five days. 

“To date, we have given direct financing to developers. These developers need the rest of the value chain, for example, material supplies and contractors. KoinWorks will work on the latter,” BTN president director Pahala Nugraha Mansury said during a media briefing on Thursday. 

“Our strategy going forward is to capture the entirety of businesses within the housing value chain,” he added, noting that the bank would engage in future partnerships with fintech platforms if the current partnership was successful. 

During the pandemic, loan disbursement has slowed as lenders have become wary of rising bad loans during the pandemic-induced contraction. 

Among fintech platforms, loan disbursement grew by only 3.12 percent year-on-year (yoy) in May this year. During the same period last year, it increased 10.87 percent, according to data from the Financial Services Authority (OJK). 

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