Jakarta. KB Bank announced Thursday that it had made an agreement to distribute Rp 123 billion (around $7.6 million) in credits to the rural bank BPR Modern Express.

This linkage program seeks to not only boost KB Bank’s financing portion, but it will also help KB Bank penetrate into the micro, small and medium enterprises (MSMEs) sector and consumer financing. As part of the recently announced agreement, KB Bank will provide funding to BPR Modern Express which will then distribute the money to its customers as the end-users. The customers can use the funding for their business capital or other needs.

“This linkage program, which has the executing scheme, will support the rural bank’s business, while also maintain KB Bank’s positive credit performance,” KB Bank’s deputy president director Robby Mondong was quoted as saying in a press statement.

As part of the agreement, KB Bank is committed to providing a financing facility of up to Rp 123 billion for BPR which mainly targets civil servants, pensioners, and MSMEs. According to Robby, both sides are mulling a partnership that is beyond the executing facility.

“We will explore the possibility of an ecosystem-wide partnership through transactional and cash management. Hopefully, we can create an even larger partnership that is more inclusive and integrated,” Robby said.

KB Bank’s efforts to boost MSME financing also align with the company’s commitment to the macroprudential inclusive financing ratio.

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