How Indonesian Startup Uses Blockchain Technology To Save 240 Million MSMEs Globally


The lingering problems of the MSME sector have been overlooked for too long. One of the Indonesian blockchain startups, Tokoin, found a solution to this crisis and it is not alone in its movement.

New York, NY, Oct. 29, 2019 (GLOBE NEWSWIRE) — (via Blockchain Wire) Micro, medium, and small enterprises… What comes to the mind of an average person when he or she hears these words?

Some might say that this is just a part of companies that make up the global business industry. Others, after hearing the words “micro” and “small”, might claim that these companies do not have much influence on the worldwide economy. Yet, both of them are wrong.

Persisting Obstacles of the MSME Industry

In reality, Micro, Medium and Small Enterprises (MSMEs) are the lifeline of the global economy. According to the United Nations:

“According to the data provided by the International Council for Small Business (ICSB), formal and informal Micro, Small and Medium-sized Enterprises (MSMEs) make up over 90% of all firms and account on average for 60-70% of total employment and 50% of GDP.”

Supporting this view, the report named “MSME Country Indicators 2014” by Erick Gonzales, Martin Hommes, and Melina Laura Mirmulstein states that there are 239.8 million MSMEs in the world, including formal and informal companies.

Source: MSME Country Indicators 2014, E. Gonzales, M. Hommes, M. Laura Mirmulstein.

Thanks to their constant need to advance and develop to keep up with the competition, MSMEs are the key drivers of global innovation and business industry growth.

Regardless of their evident global importance, these companies are constantly facing obstacles, especially in their early development stages.

The main pain point for these growing firms is limited access to finance. The situation is further aggravated by the inability to benefit from economies of scale, shortage of access to valuable information that is shared among larger players and the absence of reputation. As a result, medium and small enterprises are often lacking behind the competition.

Source: MSME Country Indicators 2014, E. Gonzales, M. Hommes, M. Laura Mirmulstein.

Considering the importance of MSMEs’ contribution to global economic growth and job creation, this class of businesses certainly deserves increased support from the public.

Nonetheless, despite numerous efforts coming from different layers of the community, MSMEs’ issues have lingered for dozens of years, suppressing the growth of this vital part of the economy.

Blockchain to Solve MSME Sector’s Deep-Rooted Issues

In the case with MSMEs, the root of the sector’s problems lies in the lack of trust. Banks feel hesitant to provide funds, suppliers have doubts about MSMEs, and, as a result, customers do not trust these companies.

Blockchain technology is what will enable small and medium firms to build up their authority and get access to the necessary services. The inimitable features of blockchain allow it to give power to the users via the distributed ledger technology. This particular technology aids in recording transactions and sharing them across the ecosystem, which enables every user to validate and have a tamper-proof copy of the ledger.

Tokoin, one of the cryptocurrency startups from Indonesia, saw a huge opportunity in utilizing this technology to create the necessary conditions for MSMEs to grow.


To address the key challenges of micro, small and medium enterprises, Tokoin has introduced a platform that enables these companies to establish their business identity. By building up their business ID, MSMEs can enjoy the benefits of credibility scoring, as they keep a record of their business operations in a digital ledger.

As part of the solution, Tokoin aims to provide MSMEs with an opportunity to leverage the shared data to be able to get access to the much-needed funds from the banks and other financial institutions. Aside from that, Tokoin’s mission is to encourage business relationships between MSMEs through sharing their credit scoring with other participants of Tokoin’s ecosystem.

MSMEs Receive Support From All Over the World

The powerful message communicated by Tokoin was heard globally and has prompted a number of companies to fight for a better future for MSMEs alongside Tokoin.

Government partners

The support from the Indonesian government provides a boost of stability and confidence to Tokoin and brings it closer to the implementation of its key mission, which is to facilitate secured and safe data exchange to enable MSMEs to get easy access to the necessary business services and financing options.

● Chamber of Commerce and Industry of the Republic of Indonesia

Among these is the partnership with the Chamber of Commerce and Industry of the Republic of Indonesia, or better known as KADIN in Indonesia. As part of this alliance, Tokoin aims to educate the Chamber of Commerce and Industry on the blockchain technology and possibilities of its application in the business industry.

● Ministry of Industry in Indonesia

Another collaboration of Tokoin is with the Ministry of Industry in Indonesia. It aims to accelerate the growth of MSMEs in Indonesia and, at the same time, to educate these businesses on the numerous advantages of being a part of the Tokoin’s ecosystem.

● Ministry of Trade of the Republic of Indonesia

Tokoin also partnered with the Ministry of Trade of the Republic of Indonesia. Being the pioneer in the crypto field when it comes to partnering with the government, Tokoin is establishing the way for its users to reach global markets.

● Pasarpolis

Tokoin’s partnership with Pasarpolis is extremely valuable for the future growth of MSMEs. Due to MSMEs’ limited access to insurance services, these companies often suffer unexpected losses and, as a result, fail. Pasarpolis, Tokoin’s InsureTech partner, is here to offer customized insurance products to MSME industry participants, contributing to the stability of the sector.

● Sahabat UMKM

Talking about Sahabat UMKM, which stands for “‘Friends of MSMEs’”, it is worth noting that this organization is crucial for connecting MSMEs and Entrepreneurship Professionals in Indonesia. Tokoin became partners with Sahabat UMKM in February of 2019, sending its message across the entrepreneur community of Indonesia.

Business Partners

Numerous businesses from all over the world joined Tokoin on its way to improve the environment for MSMEs globally. Each partnership is specifically valuable for the achievement of Tokoin’s key mission and contributes to the progress in a unique way.


In November 2018, Tokoin teamed up with, the largest B2B marketplace and an e-commerce pioneer in Indonesia. Ralali’s database of users includes circa 500,000 verified MSMEs, which allows Tokoin to broaden its reach and offer its unique solution to a large portion of Indonesia’s growing business sector.

As entered the deal with Tokoin, half a million Indonesian firms have been granted the exclusive opportunity to benefit from joining the Tokoin’s ecosystem.

● Blockcrafters

The same month saw the alliance of Blockcrafters and Tokoin come to life. Blockcrafters, one of the most prominent blockchain consulting firms in South Korea, chose to work alongside Tokoin to create global strategies for growing businesses that are aimed at supporting the latter from the technology, law, media, and economic aspects.


In February 2019, Tokoin inked a partnership deal with one of the most promising Singaporean companies, XSQ Blockchain Infrastructure and Investments.

The XSQ Tokoin alliance aims to facilitate the use and application of blockchain technology in the modern business industry. This comes in line with Tokoin’s mission to help accelerate the growth of micro, small, and medium enterprises globally via the use of blockchain technology.

● ShuttleOne

Back in June 2019, Tokoin teamed up with ShuttleOne, a company that strives to decrease the friction between fiat currencies and digital assets. Tokoin and ShuttleOne are working to empower the MSME communities in the emerging markets as well as to accelerate the growth of this promising business sector.

● Bifrost

In July 2019, Tokoin welcomed yet another partner – Bifrost. Bifrost is a middleware platform that enables decentralized apps (DApps) to be able to operate on different blockchain platforms. The Bifrost platform is enabling Tokoin to enjoy the benefits of combined protocols.

● Infinito

Infinito is yet another innovative project that chose to work with Tokoin this summer. The company created an ecosystem of blockchain solutions for businesses and individuals for managing and growing crypto assets. This alliance came forward as a result of Tokoin’s initiative of tapping into the new markets and is aiming to benefit all parties, primarily MSMEs.

● Shyft

Moving on, one of the latest of Tokoin’s collaborations is with Shyft Network, a company behind a network protocol that leverages blockchain to facilitate safe and secure data storage and sharing on different levels.

Since one of Tokoin’s goals is to enable MSMEs to freely acquire bank loans through leveraging shared data, which includes KYC information, Shyft Network’s concept is perfect for making data transactions more efficient and secure.

● SesameOpen

Last month, Tokoin has entered another extremely valuable partnership. Tokoin became partners with SesameOpen to help MSMEs around the world find success by utilizing the power of decentralization.

Today, global commerce is facing a rebirth, as decentralization marks the beginning of a new era in commerce. Commerce 3.0 is a whole new type of commerce powered by blockchain and SesameOpen is a Silicon Valley company that is making it possible.

Final Words

By joining their skills and sharing their experiences, these companies are working towards a common goal, each contributing from their field of expertise. Their differences make them unique, yet vital for the global success of MSMEs.

Choosing the blockchain technology as the main channel for MSME sector development opens a whole new world of opportunities for growing companies. The versatility and transparency of blockchain, along with its other unique characteristics, are going to serve as a foundation for the global MSME sector’s stability and success.



Shazir Mucklai

Imperium Group

[email protected]