Jakarta, 19 December 2019 --- It takes innovation and high commitment from all BNI entities so that the distribution of People's Business Credit (KUR) can run massively and improve people's welfare. The presence of BNI KUR financing has further strengthened efforts to empower micro, small and medium enterprises (MSMEs) in Indonesia, of course accompanied by the assistance of ministries, institutions, related local governments, and BNI partner startups that help digitize MSMEs in various commodities. The series of efforts produced sweet results, when BNI was designated as the Best KUR Distributor in 2019 from the government, in this case by the Coordinating Ministry for Economic Affairs of the Republic of Indonesia.
The award was presented by the Indonesian Coordinating Minister for Economy, Erlangga Hartarto in Jakarta, Thursday (19 December 2019) during the Award Ceremony for the Best KUR Distributor, the Best KUR Guarantor, the Best Regional Government, and the Regional Office of the Directorate General of the Best Treasury Supporting of KUR Program 2019. This was received by the Director of Micro, Small and Medium Enterprises and Network of BNI, Tambok P Setyawati. Attending the ceremony was the Indonesian Minister of Cooperatives and MSMEs, Teten Masduki.
Some of the initiatives initiated by BNI in encouraging KUR disbursement include channeling based on local superior fostered clusters, synergizing with SOEs, and working on the value chain financing of corporate debtors in the food sector. In addition, BNI also cooperates with linkage by promoting easy access to finance and assistance to improve business results. BNI's support is also carried out by helping market availability through off takers, as well as supporting access to modern retail markets and also online. It is this innovation and synergy that makes BNI always able to complete the task of distributing KUR more quickly with good quality.
"Along with technological advancements, BNI continues to innovate. Where with these innovations, the BNI KUR target can be achieved sooner than the stipulated time. Our hope is that BNI will continue to channel KUR with easier access for MSMEs, so that in the end it will further improve MSME welfare," Tambok said.
The GM of Small Business Enterprises 2 of BNI, Bambang Setyatmojo who present at the award presentation added that distribution of BNI KUR is classified classified as aggressive with risk mitigation which is always controlled. Where in 2019, BNI received a KUR limit of Rp 16 trillion and the target was achieved in September 2019. In October 2019, BNI received an additional KUR limit of Rp 2 trillion so that the target increased to Rp 18 trillion.
Until the end of November 2019, the distribution realization of BNI KUR has reached Rp 17.5 Triliion and enjoyed by around 206,000 MSMEs, of which 54.5% were distributed to the production sector. The distribution of BNI KUR increased compared to the distribution in 2018 which reached Rp 16 trillion and touched around 185,000 MSMEs.
BNI's role in national development cannot be denied, one of which is participating in the development and empowerment of MSMEs. BNI continues to actively support the Government's Program in developing MSMEs in line with the policy direction of President Joko Widodo's administration, namely through the support of providing credit or financing to MSMEs and improving the welfare of the people. The form of BNI's support in the government program is not only by providing easy access to financing, but it also presents counterparties and off takers so that BNI partners can grow and conduct business graduations and create economic independence for the community, Tambok added.
Proud in Promoting Indonesian MSMEs
MSME financing is included in a sector that is quite strategic. Why is that? Indonesia with a population of more than 250 million people and has around 117.68 million workers, 96.87% of whom work in the MSME sector. Based on data from Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UKM), the contribution of MSMEs to Gross Domestic Product (GDP) currently reaches 60.34%. But it is unfortunate that from that number there are only about 20% that have been bankable, the rest there are 80% of MSMEs which apparently have not been touched by the bank.
The capital aspect is indeed a classic problem in the development of MSMEs. In fact, as a matter of fact, many MSMEs have decent businesses to be given banking access (feasible). But on the other hand, MSMEs don't yet have many opportunities to access banking when compared to the corporate business sector. BNI's strategic role in the implementation of national development, one of which is to provide tangible benefits to people who previously did not get access to financial literacy to become bankable and more equitable welfare with the support of cheap and fast capital is to do a cluster program.
The pattern of financing provided to MSMEs is grouped on the basis of three conditions of business capability. First, MSMEs that are potentially feasible but not yet bankable, financing patterns are provided through partnership schemes. Second, MSMEs that have been feasible but are not yet bankable, financing patterns are provided in the form of subsidies or loans with interest subsidies by other governments. Third, MSMEs that are feasible and bankable, are provided with small segment commercial credit facilities.
The hope is that, in addition to BNI being able to provide easier and more familiar KUR capital access to MSME operators, it can also provide benefits for business improvement and welfare for Indonesian MSMEs..
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Corporate Secretary BNI