PETANIFUND OPERATIONAL RISK

TanjungFund is a fintech startup operating in the Special Region area

Yogyakarta $($DIY$).$ The company was founded in $2013$ by three founders

leading PTN graduate in Yogyakarta. Starting from initial joint venture capital of

IDR $100$ million, now after almost $11$ years of operation the company has succeeded

developing its business and managing capital of IDR $5$ billion. Business model

The company focuses on distributing capital to farmer groups in the DIY area

in the form of low$-$interest loans through website$-$based digital platforms and

Android. Apart from focusing on providing capital distribution, PerusahaanFund is also active

increasing the capacity of farmer groups in the field of financial literacy and literacy

digital.

RISK RECORDING AS KEY

The three founders believe that the success of their business comes from principles

prudence and awareness to manage risks. The company develops

systems and models to assess the risk profile of Farmer Groups before distributing

loan. The company has a Risk Management unit which is responsible for

managing company risks, both credit risk and operational risk. Company

does not consider market risk because it does not have investment activities in assets

traded finance.

Every year the Risk Management unit routinely reports the results of risk monitoring

and incidents that occurred that year. As early as $2024,$ the company has

collected incident data for the last $10$ years as presented in Table $1.$

The results of this recording become historical data used by the Risk Management unit for

projecting the potential and impact of future risk events.

REGULATORY COMPLIANCE

FarmerFund's Board of Directors actively interacts with regulators in Indonesia to

ensure that business operations and governance do not deviate from the legal corridors

applicable. Consultations carried out by the Board of Directors with regulatory representatives

produce guidelines for preparing capital reserves for management

risks must be based on the existing mechanisms in the $2004$ Basel II standards

released by the Basel Committee on Banking Supervision. To fulfill obligations

In $2024,$ the Board of Directors hopes that the Risk Management unit can carry out a study

and produce recommendations for the size of the company's capital reserves for

face operational risks.

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