Expanding Global Network, BNI penetrates into the Land of Windmills

Expanding Global Network, BNI penetrates into the Land of Windmills

Jakarta, 18 May 2022 -- PT Bank Negara Indonesia (Persero) Tbk. or BNI (stock code: BBNI) continues to strive for expansion of overseas business performance in line with the stronger trend of global economic recovery. As a development agency mandated to work on the global market, BNI continues to expand and optimize global banking performance, one of which is by expanding its network to Amsterdam to capture business potential in the post-Brexit region of Europe.

This international branch network has the status of Representative Office Amsterdam which was inaugurated by Deputy II of MSME Minister Kartika Wirjoatmodjo and marked by the signing of an inscription as a symbol of the start of BNI's activities in Amsterdam. Also present were Indonesian Ambassador to the Netherlands, Mayerfas, and Indonesian Ambassador to Belgium and Luxembourg and the European Union, Andri Hadi along with the Head of Bank Indonesia Representative London, Farida Warinangin. Meanwhile, from the BNI side, BNI President Director Royke Tumilaar was present in person along with BNI Treasury and International Director Henry Panjaitan, and BNI Corporate Banking Director Silvano Winston Rumatir, Tuesday (17/5). 

Kartika, who is familiarly called Tiko, said that BNI's presence in Amsterdam could improve business relations between Indonesia and the Netherlands, as well as with other countries in the European region. 

The Ministry of SOEs is also proactive in encouraging more state-owned enterprises to expand their business in the global arena so that they can become a reference for other companies in Indonesia, encouraging SOEs as global players, optimizing transactions and the value of outbound SOE investments and synergizing SOEs to produce harmonious and integrated strategic policies. Currently, there are 17 SOEs operating overseas, with a total of 83 branches/subsidiaries/grandchild company/joint ventures in 26 countries. 

"Representing the Ministry of State-Owned Enterprises, we express our appreciation to BNI for being proactive in developing its business network overseas. The inauguration of BNI Amsterdam Representative Office adds to the list of Indonesian state-owned enterprises that go global," he said. 
Tiko continued that amid the challenges of economic recovery after the Covid-19 pandemic and the impact of the current geopolitical situation in Europe due to the Russia-Ukraine war, the European Union and Indonesia remained strongly committed to promoting economic cooperation between countries. 

Indonesia-EU trade has continued to increase in the past year, with a trade surplus against Europe reaching almost EUR 9 billion or around Rp. 159 trillion. Even in 2021, the value of Indonesia's exports to the European Union jumped 26 percent to reach EUR16.5 billion. 

In addition, negotiations on the Comprehensive Economic Cooperation agreement between Indonesia and the European Union or the IEU CEPA have also been carried out and have reached important agreements, including on trade in goods and services, trade and sustainable development, economic cooperation and increasing security and investment. 

"We are fully confident that the existence of the BNI Office in the European continent will be a catalyst for increasing economic and trade cooperation between Indonesia and the European Union and can encourage even greater investment into Indonesia from the European Union," he added. 

On this occasion, BNI President Director Royke Tumilaar said BNI is present in Amsterdam, the Netherlands to target the post-Brexit European market. The volume of trade transactions (export-import) between the Netherlands and Indonesia is quite large, including the flow of Foreign Direct Investment (FDI) to Indonesia as well as the potential for Indonesia-related businesses and Indonesian group companies. 

In addition, we see the large population of the Indonesian diaspora in the Netherlands so that it can help various business activities, both MSME corporations and various global retail transaction businesses in the future. 

"We hope that Amsterdam can become one of the strategic operational areas in the future so that we can increase our role as BNI as a global bank Indonesia that actively encourages direct investment in Indonesia while increasing the various economic potentials of the diaspora overseas," he said.

Royke continued that this overseas Diaspora population is a very potential business niche in BNI's international business ecosystem, where currently BNI is a bank from Indonesia that has the widest overseas network, located in 6 (six) countries such as Singapore, Hong Kong, Tokyo, London, New York and Seoul, plus BNI’s network in Amsterdam. Diaspora potential is estimated at 600 thousand people, and specifically for the Netherlands, it is estimated that currently there are around 1.7 million people. 

The Diaspora population in the Netherlands is an extraordinary potential for Indonesia, because it can be a source of strength for the Indonesian economy, including the large amount of remittances sent to Indonesia. The city of Amsterdam itself has a very large attractiveness and business potential, this is the background for BNI to add overseas networks in potential countries where Amsterdam is one of the European economic centers and international trade routes. 

BNI's presence abroad includes providing services for the Diaspora. Currently, Diaspora can open a Diaspora savings account or Diaspora Saving without having to go to a BNI branch, but through BNI Mobile Banking platform. BNI overseas also provides trade finance transaction services, bank guarantees and others. For Diaspora who want to develop their business, BNI also provides a financing scheme through Diaspora Lending. 

This expansion effort is inseparable from collaboration with digital-based counterparts overseas, fintech, e-commerce, transaction platforms such as blockchain and others. This collaboration is expected to be able to reach more Diaspora easily, efficiently and cost-effectively.  

"In the future, we will continue to expand and add networks in other potential areas. BNI implements a capture the flow strategy in determining the location of overseas branches. We consider the volume of trade transactions, the amount of investment into Indonesia, the number of Indonesia-related companies and the Indonesian diaspora population. We hope that the presence of BNI's international network can help Indonesian entrepreneurs who want to expand their business overseas, as well as become a gateway for foreign entrepreneurs to enter Indonesia," said Royke.


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