There’s a new trend in Indonesia’s lending sector. Of the IDR 64.75 trillion (US$4.6 billion) worth of loans disbursed across 153 fintech lending platforms in Indonesia as of November 2020, around 18%—around IDR 11 trillion (US$782 million)—went into agricultural projects. That’s an estimated 10-15% increase from a year prior, a spokesperson from the Indonesian fintech lending association, AFPI, told The Ken.
This is a heartening, yet surprising trend. Heartening because the agricultural sector is the second-largest contributor to Indonesia’s economy. Surprising, at least from the outside, because it’s taken so long for lenders to warm up to it.