Still Wondering, Why is it so Hard for MSME to Have a Business Expansion? Here’s Why!

The common problem who strain the growth of MSMEs often said is the difficulties to find the business fund. MSME lacks access to funding that strains them to expansion opportunities. World Bank studies say that there are around 200–245 million MSME that couldn’t earn business loan.

Though many have agreed that business loan will assist MSME to growth, still there are always happened rejection cases of business credit appliance.

There are two types of requirement stated by banks for MSME credit appliance; (1) The general requirement in the form of a legal document who will prove the validity of a business unit, (2) The credit appliance through Capital and Collateral.

Credit appliance through legal documents

Credit appliance requires the applicant to provide some documents in order to obtain credit or funding from financial institutions. On the first step which is the KYC, MSME couldn’t even fulfil the necessities. Many of the MSMEs are still operating in an unauthorized way, we call it “the informal” sector.

Lackness of legal documents also burdens them to do their financial report. They often fail to provide credible management and financial record. Not only the informal MSMEs, the formal MSMEs are also often couldn’t provide a proper financial and transaction record to be reported.

Even when they have already qualified in the term of economy capacity, document incompleteness of legal documents and transaction record of their daily business operation makes them still unbankable.

The capital and collateral credit appliance

Next, are Capital and Collateral. Most of MSME do not possess any property which can be utilized as collateral. Ironically for MSME, because they need this as collateral to obtain credit and funding in order to expand their business. Most financial institutions loan requires collateral as the mechanism of its mitigation risk.

This difficulties of credit absence situation often lead them to access individual credit, even sometimes with a high and unmeasurable interest rate. This could be harmful to MSME’s business growth.

However, there is another safer option for MSME to grow. Utilizing the technology infrastructure to make a structured, compiled record of their data in the form of valuable asset.

Tokoin facilitates the MSMEs with the processing and distribution of data between related participants of the digital business ecosystem. If only the MSME could provide a better, complete and competent data in the form of valuable asset, the bank could obtain substantial and appropriate information about the character and credibility of a business unit. In Tokoin, data information from MSME will be validated as the asset that contains values.

Solving the Inconvenient Access to Credit of MSMEs

“SMEs are less likely to be able to obtain bank loans than large firms; instead, they rely on internal funds, or cash from friends and family, to launch and initially run their enterprises” Worldbank.

According to the global record, Formal SMEs contribute up to 60% of total employment and up to 40% of national income (GDP) in emerging economies. The number got even higher when micro and informal SMEs are included. However, access to finance often constraint MSME’s growth. Within the absence from access to capital, many MSMEs find it difficult to grow, not infrequently comes to stagnation, or even languish.

To be compared with large firms, SMEs are less likely able to obtain bank loans. This is when we talk about formal SMEs, what about the informal? The financing gap is even larger when micro and informal enterprises are taken into account. The number increases to 70% of the micro, small and medium-sized enterprises (MSMEs) in emerging markets still lack access to credit.

Financial institution as bank or insurance, require credit scoring or credibility status to whoever who wants to apply a credit proposal. Though MSMEs has a massive contribution to the emerging market, the absence of credit scoring and lack of credibility status makes them very hard to obtain future financial institution’s fund.

What we do

A key area of the Tokoin work is to accelerate MSME’s through convenient access to finance and find innovative solutions to unlock sources of capital.

Our approach is by enabling the blockchain technology on our platform, combining digital identity and digital ledger to build MSMEs credit scoring services, to increase MSME’s economic scale. This technology has a similar function as the bank account for its transactional recording. However, the blockchain gave their user authority to themselves. Each user are liberated to share assets to whoever they trust, directly.

With this proper technological implementation, we facilitate the MSME sector to embrace economic inclusion.

The idea is to bring prosperity to MSMEs. On this modern business ecosystem, Tokoin allows the MSMEs on having the financial records as similar as with the bank. Every transaction that is initiated through Tokoin’s platform is accurately recorded with timestamps.

By thus, Tokoin facilitates MSMEs to have a better record of financial transactions, as a form of credit history to build the credibility status of their business. The transaction history of the MSME initiation is a guarantee of business feasibility to access various business solutions.

The Role of Data in Business

Tokoin.io – Data can represent everything. Information, numbers, facts, instructions that are helpful to understand an object or an entity that exist within an environment. In a business environment, data means any information related from the production to the consumption process that acts as archives or records, beneficial to the significant future action to achieve better business result, be it the efficiency for productivity or to obtain better revenue. There is a valuable thing that can be figured out from a set of data.

According to the World Economic Forum,

To operate effectively and efficiently, economies need reliable, continuous, and affordable access to data.

The existence of data can drive a company’s decision and concerns regarding to planning and marketing. With the right set of data, companies can determine to channel their products promotion to their target audience. This action will lead to cost efficiency in marketing strategy. By targeting the exact market that is highly likely to consume the products offered, companies are able to promote directly and the conversion rate of the marketing channel are more likely to increase.

Relevant data allows companies to discover market needs. Setting the data to the most specific way is one way to understand the market. Use case that is closest to be applied to market the products is the product dispersion based on the geographic level. From one city to another, the company can measure the acceptance of their products. By driving their product distribution to the highest receptivity, companies can expect higher revenue and income. Therefore, companies can also expect lower excess products that are stuck in stores and retailers.

Every company in general, has the budget allocation for marketing and promotion. With this budget, companies will test the market in terms of product receptivity by the conversion measured from the marketing strategy. But, the downside of this method, the audience is unknown. If only the companies have the insights in advance about their market, they can allocate their budget to the right market for better targeting which leads to better conversion and revenue.

These use cases are applicable to the marketing allocation of the brand companies and manufacturers. Answering all the needs, the role of data in business is better targeting, so the companies are allowed to channel their marketing cost and expect better result of conversion and revenue in return.

Now the question is, how to acquire the data, and what kind of data that are best to to give the desirable result? The answer is, listing of business profiles. Specific business profile covers business sectors, location and value demand from a particular range of time. This specialized set of data are possible to obtain from business transactions. To make the purpose of data collection and pooling is possible, Tokoin engages to the transaction of business existing in any online trading ecosystem.

Tokoin works by accumulating the business profiles that are registered and validated in the Tokoin platform. Therefore, companies can be assured that the data compiled are accurate, as the data providers are the participant of the ecosystem. In the ecosystem of data in Tokoin, companies are allowed to receive demand from their actual buyers. The transaction history that are done within the Tokoin platform are also recorded to provide such market overview that are beneficial to gain insights about product demands from their buyers.

To further information, do not hesitate to contact us on;
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The 4th Industrial Revolution from the Perspective of Business Model


The participants of BlockClinic 1.0 took a picture together with speakers Mutia Rachmi and Peter Wijaya. This event was initiated by BlockLab ID and powered by Tokoin.

Having a community to share knowledge and insights about the blockchain world surely bring a valuable network, therefore we came up with an idea to gather all the blockchain enthusiasts in our event; the BlockClinic 1.0, to encourage all the participants in thinking critically and grasp the insights of the crypto world. This bi-weekly event is hosted and organised by our community program, BlockLab Indonesia. In our events, we bring together business professionals, blockchain enthusiasts, academia and those who are interested to enter the world of blockchain through learning together.

We intend to cover a broad impact that the blockchain technology brings to every aspect in our life. That is why, we chose The Fourth Industrial Revolution as a perspective to introduce about blockchain in BlockClinic 1.0. Delivering the topic, Tokoin invited the speakers:

  • Host: Singgih Akbar Prakoso — Community Manager BlockLab ID
  • Peter Wijaya — Business Partner of Ralali.com
  • Mutia Rachmi — Business Developer of NEM

Located in the Ralali.com’s office in West Jakarta, about 50 participants ranging of business executives, entrepreneurs in various fields, academia and journalists joined in in our meetup which consists a brief presentation from each of the speakers, Q&A, discussion and networking session. We want to create a community and aspire the people to deepen their knowledge about blockchain and widen their network.

The Fourth Industrial Revolution

Being aware that the industry is continuously improving, the world is now facing the revolution of industry 4.0. In this phase, industrial and business process is highly affected by technology such as Artificial Intelligence, Internet of Things, and blockchain. This will bring consequences to the business model in terms of efficiency of production and manpower. To get involved in the digital ecosystem, let alone the blockchain ecosystem, businesses need to adapt to a new form of technology.

In this case, business models are also changing. Peter Wijaya, one of our partner from Indonesia’s B2B marketplace, sees the sharing economy which can be powered with the blockchain technology to guarantee the transparency and security as an effective solution.

Mutia Rachmi, NEM’s Business Developer, invited three participants in the interactive illustration.

Understanding the blockchain network, Mutia Rachmi, the Business Developer of NEM presented an interactive illustration. To understand how blockchain works, firstly one can understand characteristics of blockchain, the peer-to-peer network. So the illustration goes as, if one peer put one data, it will be distributed to another peers. One peer modify the data, the change will leave traces and it will affect the other data that is being distributed on the network. This immutable characteristic makes the blockchain network is incorruptible and unhackable.

The technology of blockchain that can be implemented in a business model, requires a friendly interface for the user to access. Mutia Rachmi stated that the blockchain can solve problems and provide effectivity in business processes, such as trust, transparent records preventing fraud, cost reduction, quicker transaction which all are secured with encryption.

To answer the challenge of the Industrial Revolution 4.0, businesses must willing to invest their time in learning as well as knowledge and skill development. Tokoin and BlockLab Indonesia is providing a convenient place to get deeper understanding of many aspects in the blockchain field, which we will present in our upcoming bi-weekly event.

To further information, do not hesitate to contact us on;
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The Path to SME Transformation

Tokoin.io – Technology is a tool for SME to make bigger opportunities to accelerate their business. The blockchain is a technology that can assists business transformation. To fully embrace the technology-driven transformation, businesses must willing to learn and adapt to this blockchain change as revolution process. Based on the blockchain network, the business ecosystem will be built based on the decentralized governance of the network of the blockchain. All of the business participants will engage in a secure, efficient and transparent business process. 
 
Small and medium enterprises (SME) now is a vanguard of modern business. In the past two decades, SMEs have managed to face the challenge of entrepreneurship, problem solving and creativity while bringing big impact to the economy. Their important role for the economic aspect of a country can be seen from increasing job opportunities, and gross domestic products including net export, which is the sign of healthy and productive business ecosystem in a developing country.

Answering the needs of the market, SMEs supply essential products and services for mass consumption on a daily basis, covering many business functions, from the automotive workshops to facilitate a private and public convenient transportation, to a grocery store that supplies everyday needs. For instance, when a housewife needs something for the kitchen, she can easily find any grocery store nearest to her house to get what she needs. Another example, if any motorcycle driver, need to patch the tire, they can move over to the side of the road and find nearest automotive workshop which provides quick services from changing lube to fixing minor to medium issues of the vehicle.

To facilitate SME’s with greater opportunity in order to expand their businesses, Tokoin is extending technology and information towards SMEs. There will be a lot of business functions that can be fulfilled through Tokoin as the blockchain based platform. Through this technology up-gradation with blockchain utilization, one of the main support that Tokoin will bring for SME is the facilitation of procurement privileges, and spacious opportunity to the preferential access to loans, credit property and insurance support which are crucial to their business expansion in the near future.

Getting along with the pace in the business process of Small and Medium Enterprises (SME), Tokoin is setting up an easy to join and easy to use in the platform’s constituent for the role of SME as the buyer in the business procurement process. In this digital and internet era, any kind of information can be assessed from the internet. The swift flow of information has created a technology literate society with the habit of smartphone use. This habit has also adapted to many business procurement processes that are done in a digitized way. The online transaction has emerged as fulfilling necessities for the fast way of the business buying process. The digitized buying process is very likely to be switched to blockchain network which will allow any transaction can happen with the trusted partnership, secured any data in the blockchain network to create a better and efficient productivity.

The ecosystem of Tokoin is involving the financial and business service provider. Buyers as the stakeholder of Tokoin will be able to reach this financial and business services provider with utilizing token that is built within the platform. It will take time and years to transform business. But now, SME can be a part of the journey. Tokoin is the gateway to the blockchain transformation that will bring benefit to run businesses more productively and to gain the long-term benefit of financing and funding.

To further information, do not hesitate to contact us on;
Website: https://www.tokoin.io/
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How Tokoin Helps Their Buyer to Keep Businesses in a Good Condition

As a coffee shop owner, almost every month Deni needs to spend some money on product needs and for various invoice payment as his coffee shop working capital.

The working capital is in cash, or an assets that can be easily monetized, used to finance the day-to-day operations of a company. By having accurate information about working capital, then you can plan and manage business properly. In addition, it would be easier when it comes to determining the investment decisions.

For a coffee shop business, working capital would consist of;

With the illustration above, the list might not be the same items and nominals from one month to another because the needs will vary according to the groceries’ supply.

As a coffee shop owner, every monthly purchasing and payment, Deni must balance his expenses with his working capital budget well. In order to not to disrupt his working capital while balancing his expenses, Deni might have to reduce allocating money on groceries as a way out.

By purchasing through Tokoin platform, Deni might be able to keep the working capital on a healthy condition. As a downstream on the B2B business ecosystem, Tokoin provides beneficiaries, one of them is providing efficiency on the B2B supply distribution chain. This will cuts down any unnecessary cost.

As a result, Tokoin could help Deni manage his coffee shop’s working capital as much as possible by having the lower purchasing cost, since he buying his products form direct sellers.

This effectiveness of purchasing can occur to happen because of the data distributions under Tokoin platform. Deni as the buyer in the B2B ecosystem has previously input informations about his business needs and size. This informations were recorded as a nodes under Tokoin’s blockchain system and generates in such way to be distributed directly to whoever the sellers needed it.

This data distributions ease the sellers to precisely located their products into certain market, in this case Deni’s coffee shop.

In return, as the Data provider, Tokoin will provide Deni with various discount on his purchasing as the direct benefit. And a good business reputations from the transactions timestamps through blockchain technology as the indirect benefit.


Tokoin itself is a blockchain-based platform to help SMEs accelerate their businesses. This platform’s not only helps SMEs to directly connect to the sellers, but also enhance the network with efectiveness, secure, and trustworthy ecosystem to support the data distribution trade.

In this blockchain-based platform, all the data information are accurately recorded using cryptography, the data are stored in blocks that include timestamps. If a set of information are already recorded in a block, they are immutable and are governed by the rules of network. Any change made in each block will create a new block that is linked to a previous block. This means that once the information is there, it stays there. The information is trustworthy because data cannot be changed or manipulated without leaving traces.

Since transactions timestamps has a potential to be very vital for the progress of a business, this can be a measurement as to whether a company can repay obligations such as a loan and an estimation of how long it will take. This can help institutions avoid problems with businesses that operate without adequate capital.

To further information, do not hesitate to contact us on;
Website: https://www.tokoin.io/
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This is How Blockchain Accelerates the B2B Ecosystem


Tokoin.io – On a business world, the availability of “market overview’s data” could be a game-changer for entrepreneurs, especially for sellers (brand company). This “data” could be anything related to its market overviews, the buyers behavior.

By having accessible data, sellers are able to aim their strategy in a right direction to the buyer. In this B2B ecosystem, data about market behavior can help the brand company as the seller to precisely target their buyers with the appropriate marketing strategy.

The market overview data could help them to precisely distribute their products to the right buyers regarding buyers profiling, demographic and geographic segmentation, and the business sector of the buyers.

However, instead of utilizing data in order to reach the right buyers, the brand companies on the traditional B2B supply chain system often use help from the intermediaries to precisely distributes the products. Unfortunately, this traditional system can cause disadvantages not only for sellers, but most importantly, the buyers.

Firstly, the existence of intermediaries will make the supply chain grow longer. Products don’t reach the buyers directly, because of the time delay.

Secondly, it also means that this can cost some additional fees that will affect the price. In the end, the buyers might run to another distributor channel for similar products with a cheaper price.

Tokoin realized how valuable data existence is, and how intermediaries can cause so many disadvantages for the B2B ecosystem.

Let’s have a quick peek from the Facebook data leak last April.

According to The New York Times and The Observer report, political consultant company, Cambridge Analytica stole 50 millions of Facebook account. Using the data, Cambridge Analytica designed a software to predict and affect voters on US 2016 election.

Facebook data leak is proof that “data” can be treated as a valuable asset. The importance of data availability can affect the ecosystem. From Facebook data leak, the data stolen might affect the election. While on the B2B ecosystem, the proper data availability gives many convenience benefits for both sellers and buyers all at once.

Another proof came from the world economist. They agree that the world’s most valuable resources is no longer oil, but data.

This abundance of data changes the nature of competition. With the existence of data, there are extra network effects. By collecting more data, a firm has more scope to improve its products, which will attract more users.” The Economist, May 6th, 2017.

The existence of ‘data’ has given their users the “God’s eye view” of activities on their market and beyond.

Solving data absence to accelerate the ecosystem

In order to make the product distributed precisely in the business ecosystem, Tokoin assists the ecosystem as a pool of data information associated with the needs of the distribution of goods.

The existence of data would assist the B2B ecosystem to accelerate. The buyers of this ecosystem take a role as a data supplier to fill the data demand from the sellers.

By taking a role as a data processor and data distributions platform, Tokoin implements the blockchain technology as its groundworks to avoid potential negative issues such as system failures, data duplication, or even human errors.

The blockchain is used to provide transparency through accurate buyer information, real-time market data, reputations, traceability, tracking and most importantly; a method to ensure purchasing commitment and allow global participation.

Henceforth, this technology will create an efficient, secure and trustworthy business ecosystem.

To obtain Tokoin’s beneficiary, brand companies within the Tokoin platform need to stacks the Toko Token through the Tokoin’s web-based application. Once brand companies stack the tokens, they gain access to the data information stored on the blockchain network.

As for the buyer’s side, Tokoin is able to distribute purchasing discounts from brand companies after they input the basic information of their business profile as an initial action of purchasing activities through Tokoin’s mobile apps.

To further information, do not hesitate to contact us on;
Website: https://www.tokoin.io/
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Interrelationship in A Healthy B2B Ecosystem

Tokoin.io – It takes an ecosystem to support the flows in a business model. The B2B ecosystem consists of an order of arrangement to convey the experience of distributing values from one participants to another. Each participant holds a determining role in order to keep the ecosystem fruitful to every business involved.

Iansiti and Levien (2004), compared business ecosystem with biological ecosystem.

“…a biological ecosystem provides a powerful analogy for understanding a business network. And like business network participants, biological species in ecosystems share their fate with each other. If the ecosystem is healthy, individual species thrive. If the ecosystem is unhealthy, individual species suffer deeply. And as with business ecosystems, reversals in overall ecosystem health can happen very quickly.” (Iansiti & Levien 2004, 8–9)

Business Ecosystem as the New Approach to… (PDF Download Available). Available from:https://www.researchgate.net/publication/228985086_Business_Ecosystem_as_the_New_Approach_to_Complex_Adaptive_Business_Environments[accessed Jun 08 2018].

Analogous to the biological ecosystem, B2B ecosystem occurs consisting two way interactions of all the participants in an environment in favour of mutual growth and evolution of populations in the form of commensalism, competition and mutualism. The concept of healthy ecosystem outlined by the contribution of every main organisms involved. The roles of organisms as the main partakers, can be seen as the supply chain from one end to another. Manufacturers as producers in the upstream providing their goods to the resellers in the downstream without any destabilizing interruption in pricing and market overview. Uninvolving the sales intermediaries agents and individual buyers, the supply chain goes directly from upstream to downstream through efficient data distribution, precise targeting in methodical platform.

This interaction forms mutual relationship as the resellers as business buyers need lowest price possible and manufacturers desire to know their actual market prior to product innovation and development. This mutual needs can be fulfilled in a well ordered manner of data provision. Adaptation of blockchain technology in the B2B ecosystem is seen as the applicable solution to disrupt the traditional supply chain including the involvement of layers of intermediaries. Resellers can quote directly to the Producers to get lowest price, which simultaneously generating real-time and actual data about market overview for the Producers.

Implemented in a marketplace, Tokoin provides a shortest way for its business participant to connect without layers of intermediaries. In order to build an ecosystem consisting of valuable asset, Tokoin is developing a blockchain powered platform to facilitate every participant with security to every transaction and a more trustworthy relationship, resulting to valuable partnership between every partakers.

The blockchain platform enables data exchange in a decentralised manner. No central entity which collect the data instead it will be securely and immutably stored, eliminating any kind of data abuse and manipulation, creating ecosystem of community of organisms that are linked together in a mutual way. Concurrently, new generations of business customers are conditioned expectation to emerge in the platforms.

To further information, do not hesitate to contact us on;
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Can Your Business Trust Blockchain?

Tokoin.io – As a player in a business world, you would want to use every resource possible to allow you to run your business smoothly and eventually gain benefits for your business. This can also mean reputation and credibility, that’s why businesses are always to keep up with the latest trends technologically.

It could also means that businesses build a different kind of properties, not only physically but also digitally. The digital properties of every business are also the valuable assets that need to be secured and kept so that it can only be accessed by the parties you trust in your business network.

But how do you secure your valuable asset, build your business network as the proof of your reputation while simultaneously maintaining real-time connections to your stakeholders? When most businesses realize that the key is to have a traceable database, blockchain has emerged from its prominent use in cryptocurrency and provides consensus for the reliability in data integrity and traceability.

As an entity in a blockchain based network, your business is able to create your own data trail that is replicable so you can distribute it to every party involving in your business network. This data trail owned by you and there is no central database which collects the data without your permission, meaning there is no single point of failure that is hackable that can cause the data leaked.

The activities in the blockchain

The information you put in the network is stored in a block, which contains an index, a timestamp, a list of transactions, a proof and the hash of the previous block. This is why, there is no untraceable action, as every change of the information will create a new block linked to one another as immutable audit trails growing in the platform.

With this consensus in the blockchain, each party involved in your business process agrees, that all things in the database are related to every activity with no control of any central authority. Therefore, trust is built based on their traced, unchangeable action.

Now imagine you are a product manufacture. You have plenty of bulk products, waiting to be distributed all around the country. But, you can only reach the market by contacting sales agents and distributors to spread your products.

Without these intermediaries, you have no channel of where to deliver how many of your products and to whom, and how do they actually make use of your products. The middlemen put your products on the market, their market. They sell the products to retail stores, raising the price multiple times.

Imagine if you can access the market of your real business customers. There is a platform where you can assess market data on the demand for your products and the spread of your customers, based on their real-time request for your product in bulk quantity.

Based on this data, you can manage your supply chain directly to your customers.

This circulation of business is possible to implement in the blockchain powered platform, as all the data are stored as a valuable asset to you and your customers.

To further information, do not hesitate to contact us on;
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