NEW YORK, Oct. 28, 2020 (GLOBE NEWSWIRE) -- Logiq, Inc. (OTCQX: LGIQ), a global provider of award-winning eCommerce and fintech solutions, has been selected to provide mobile microlending and related services to 48 million Indonesians in an exclusive strategic alliance with the country’s social security program provider, Koperasi Mona Santoso Berjaya (KMSB).
Logiq and KMSB have agreed to jointly own and operate a new mobile fintech platform that will deliver mobile financial services. Logiq, through its Indonesian operations, will provide platform design and technology, management, ongoing hosting and technical support. KMSB will provide the financial institutional relationships for enabling the microlending program.
Using the new fintech platform, KMSB will provide microlending services to Badan Perlayanan Jaminan Sosial Ketenagakerjaan (BPJSTK), the social security agency that administers retirement and pension plans on behalf of Indonesian government entities and about 600,000 small- and medium-sized businesses (SMBs), with a combined total of 48 million individual members.
“Through this exclusive strategic alliance with KMSB, we have a tremendous opportunity to improve the lives of nearly 20% of the Indonesian population who normally do not have access to traditional financial services,” stated Logiq president, Brent Suen. “The opportunities for new revenue streams from microlending, mobile payments, and our eCommerce solutions with this enormous user base are also phenomenal, potentially generating tens of millions of dollars of revenue annually for the benefit of our shareholders once the alliance with KMSB is fully launched, as well as the important programs that KMSB will be providing.”
“The team at KMSB, led by Dr. Mohsein Saleh Badegel, are some of the most forward-thinking and influential members of the Indonesian digital economy and they are initiating strong forward progress for their country,” continued Suen. “We’re proud to partner with KMSB, and we believe that over the near term the scale of this effort will represent a significant portion of the country’s population.”
Dr. Mohsein Saleh Badegel, chairman of KMSB, commented: “As a national cooperative, KMSB provides valuable services to its members that includes loans and insurance. We also lead investment projects in agriculture and other areas to create an economic ecosystem for our members. As a national cooperative, we can also provide loans to employees of state-owned enterprises, like PT. Samudranayaka Grahaunggul (SANGU), as well as state body employers, like BPJSTK with its 48 million members. The strategic alliance with Logiq will help us achieve the full potential in serving this immense consumer base and will generate revenue streams for both partners.”
Nugroho Sampurno, board member of KMSB, added: “We expect this alliance with Logiq to help improve the quality of life for Indonesians, and it reflects our country’s vision for its digital transformation. The Logiq team’s enthusiasm and vision, coupled with our strength locally, will help us achieve this transformation.”
Hifdal Rizky, secretary of KMSB, also commented: “The demand for microloans and financial services through digital means is a national priority. As COVID-19 continues to impact our economy and others worldwide, we must provide services that will help the families of all Indonesians and create new opportunities for incoming generations. Our alliance with Logiq will help us achieve this aim.”
The partners will work together to launch a new marketing and advertising campaign that will encourage adoption and regular use of the mobile fintech offerings. They plan to begin with a pilot program for 6,000 BPJSTK employees who will be able to borrow up to 20% of their annual salary. The program is planned for launch in the first quarter of 2021.
The next phase involves rolling out the program to 5 million contract/delivery drivers of Garda Digital Indonesia, a membership organization overseen by BPJSTK that handles pensions and health benefits for ridesharing drivers. Microloans will be made available to these members for personal or business use, such as purchasing, configuring, or repairing mobile vehicles.
Finally, the program will be introduced to all BPJSTK’s 48 million members and 600,000 SMBs. They will also gain access to Logiq’s increasingly popular PayLogiq™ e-Wallet and GoLogiq™ hyper-local food delivery mobile platforms.
PayLogiq (branded as AtozPay™ in Indonesia) allows users to top-up their phone, pay bills and make other financial transactions. SMBs will also be introduced to Logiq’s award-winning mobile app creation platform, AppLogiq™ (aka CreateApp™), giving them the ability to easily create a mobile presence with eCommerce and fintech functionality without technical knowhow or background. Logiq and KMSB plan to begin marketing subscriptions of AppLogiq to SMBs in the first quarter of 2021, and they expect to achieve 30% penetration of BPJSTK’s SMB membership by the end of the year.
Logiq and KMSB expect their new strategic alliance to benefit from Indonesia’s fast-growing digital financial services market, which is projected by SGE to grow at a compounded annual rate of 34% to reach US$8.6 billion by 2025.
“This alliance, and its vast opportunities for expanded market reach and growth, represents the culmination of years of investment in our South East Asia operations,” added Suen. “To put the opportunity in perspective, our Indonesian operations currently have 36,000 SMBs and 130,000 individual customers, and we now have immediate access to an exponentially greater base of new customers. Further, the equal operational and revenue share structure with KMSB validates and reaffirms the unique and powerful capabilities of our mCommerce and fintech platforms. As we continue to attract major global partners like KMSB, ShopeePay and TechMahindra, we see ourselves at just the beginning of a long-term acceleration in this key segment of our global business operations.”
About Koperasi Mona Santoso Berjaya
In these recessionary times and the era of a pandemic, KMSB was formed as a national economic movement and business entity that is able to participate in maintaining and improving the quality of life for all Indonesians and increase the competitiveness of domestic production. KMSB is engaged in savings and loans for generating new opportunities for Indonesian workers, and is dedicated to building a reliable distribution network for consumers that addresses their needs at a fair price. KMSB helps to create new economic opportunities for its members.
About Dr. Mohsein Saleh Badegel
Dr. Mohsein Saleh Badegel is an entrepreneur who founded Mentalku and Hisehat. The companies provide health and mental health services in the form of health screening, teleconsulting, and psychological testing to BPJSTK members, including psychological testing services for those applying and renewing their auto licenses in Indonesia. Both of these companies are used by the Indonesian National Police with 590,000 members, Indonesian Armed Forces with 395,000 members, and several other larger state-owned enterprises.
About BPJS Ketenagakerjaan
Badan PenyelenggaraJaminan Sosial (BPJS) Ketenagakerjaan is a public legal entity whose duty is to protect all workers through national social security programs and encourage their participation. Established by the government of Indonesia, BPJS develops and administers worker compensation, retirement, and pension benefits, as well as housing and shopping discount programs for approximately 48 million citizens and 600,000 small- and medium-sized businesses. BPJS is committed to protecting and making prosperous all workers and their families, enhancing productivity and competitiveness of businesses and employees, and supporting national economic development and self-reliance. To learn more, go to www.bpjsketenagakerjaan.go.id/en.
About Logiq
Logiq, Inc. (OTCQX: LGIQ) is a U.S.-based leading global provider of eCommerce, mCommerce, and fintech business enablement solutions. Its AppLogiq™ platform-as-a-service enables small- and medium-sized businesses worldwide to easily create and deploy a native mobile app for their business without technical knowledge or background. AppLogiq empowers businesses to reach more customers, increase sales, manage logistics, and promote their products and services in an easy, affordable, and highly efficient way. AppLogiq is offered in 14 languages across 10 countries and three continents, including some of the fastest-growing emerging markets in Southeast Asia.
The company’s subsidiary, DataLogiq, provides a data-driven, end-to-end eCommerce marketing solution for enterprises and major U.S. brands, including Home Advisor, QuinStreet and Sunrun. Its AI-powered LogiqX™ data engine delivers valuable consumer insights that enhance the ROI of online marketing spend. The company’s PayLogiq™ offers mobile payments, and GoLogiq™ offers hyper-local food delivery services. For more information about Logiq, go to Logiq.com.
Forward-Looking Disclaimer
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. Logiq cautions you that statements in this press release that are not a description of historical facts are forward-looking statements. These statements are based on Logiq 's current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representation by Logiq or its affiliates that any of its plans or expectations will be achieved. Actual results may differ from those set forth in this press release due to the risk and uncertainties inherent in Logiq’s business, including, without limitation: the fitness of Logiq’s products and services for a particular application or market, the successful launch and development of Logiq’s partnership with KMSB, including the related pilot programs, expectations of future events, business trends, financial results, and/or business transactions that may not be consummated or realized, as well as other risks described in Logiq’s prior press releases and in its filings with the Securities and Exchange Commission (“SEC”), including under the heading "Risk Factors" in Logiq’s Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and Logiq undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.
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