BNI KUR Cluster Accelerates National Economic Recovery

BNI KUR Cluster Accelerates National Economic Recovery

Jakarta, 23 August 2020 - PT Bank Negara Indonesia (Persero), Tbk or BNI is committed to supporting micro, small and medium enterprises (MSMEs) as an effort to restore the national economy. Through BNI One Village One Product (OVOP) cluster, the expansion of MSME credit is expected to run massively so that it becomes an engine of national economic growth.

The business potential and the large number of MSME players in Indonesia have made the MSME segment a focus for BNI in providing credit and empowerment. MSMEs contribute 99.9% of all businesses, 97% of the total national workforce, and 60.34% of gross domestic product. In addition, the business focus of MSMEs is mostly in the real sector, so it is hoped that the empowerment of MSMEs can directly drive the economy and accelerate the recovery of the national economy which was severely affected by Covid-19 pandemic.

As one of the strategies for empowering MSMEs, which is in line with government programs to accelerate village development, BNI encourages the OVOP movement. In this activity, BNI presented clusters of Gumitir Flower Farmers and Porang Farmers. The OVOP pattern is expected to encourage the growth of the rural community's economy. Each village is encouraged to find and develop superior products that have distinctive characteristics, which are different from the characteristics of products from other villages.

Meanwhile, separately, BNI Director of Business and MSMEs, Tambok P. Setyawati stated, "BNI is committed to supporting this program by encouraging superior products from villages to be able to compete at the global level. This commitment is manifested by BNI from assisting rural communities in determining superior products, facilitating production using capital assistance, and expanding market access, both through online marketing and the export market with the help of BNI overseas branches."

Responding to national issues regarding the economy and MSMEs during Covid-19 pandemic, in Kertalangu Cultural Village, Denpasar, Bali, the government together with the State-Owned Bank Association (Himbara) focus on the strategy to increase these points through the distribution of people's business credit (KUR) on an OVOP cluster, so that the village ecosystem can work hand in hand to produce products that are unique.

The selection of Bali as the location for the implementation of activities was based on the complex economic ecosystem in the province. Bali, otherwise known as "the Island of Gods", is a reflection of the heterogeneity of the MSME sector in the archipelago. Apart from commerce, agriculture, plantations, fisheries, animal husbandry and industry, the creative economy and tourism form the backbone of the area.

As a series of events in KUR financing to OVOP MSMEs, a ministerial coordination meeting was held which among others was attended by the Coordinating Minister for Economy, Airlangga Hartarto, the Minister of Agrarian Affairs and Spatial Planning/the Head of National Land Agency, Sofyan A. Djalil, the Minister of Industry, Agus Gumiwang Kartasasmita, and the Minister of Agriculture, Syahrul Yasin Limpo, with the focus on strengthening the economy and MSMEs. It has become the government's concern to save the economy through economic policy stimulus to avoid recession and to speed up again in the adaptation phase of new normal.

The focus of discussion on MSMEs is not without basis, but by considering the fact that MSMEs are the largest economic sector in Indonesia and the sector most affected by the pandemic. MSMEs as the largest economic sector absorb 97% of the total workforce and 99% of total employment. In Indonesia alone, the number of MSMEs has reached more than 64 million, so it is natural that economic recovery can be carried out by empowering MSMEs.

On this occasion, Airlangga Hartarto said, "The government has released a number of policies. This must be supported and implemented in the real sector to strengthen the national economy, which had collapsed after being affected by Covid-19 pandemic. Among them is National Economic Recovery (PEN) program. One form of PEN program is a stimulus for MSMEs and banks so that banks are encouraged to continue channeling credit, especially KUR, to revive MSMEs and drive the economy.”

Indonesia, which is entering a new normal adaptation phase, faces many challenges and opportunities. Various economic sectors are of concern, especially the productive sector, including increasing output so that MSME products have more value so that they are highly competitive. The support to productive sector can only be realized through the contribution of all parties, not only from the government as the regulator, but also from activists or business actors and the banking sector.

As a government partner, BNI, which acts as an agent of development, is entrusted with the success of government programs. With regard to the economic recovery program, banks in accordance with their capacities provide encouragement so that MSMEs can grow again and the economy returns to health and growth. By distributing low-interest loans such as KUR and providing stimulus to MSMEs affected by Covid-19, coaching and training, BNI is in line with the government to support existing programs.

MSMEs as a sector that that receives special attention, it is an economic class that directly touches the real economy. Since mid-March 2020, BNI has provided stimulus to debtors who meet the provisions in the form of interest relief, postponement of principal installments, and extension of the term. In total, as of 31 July 2020, BNI has provided stimulus to 175,215 small and micro segment debtors with a loan portfolio of IDR 21.172 trillion.

BNI Director of Business and MSMEs, Tambok P. Setyawati added, “The distribution of KUR BNI and the Partnership Program has been carried out to debtor representatives who are the Gumitir Flower Farmers Group and Porang Farmers. The KUR distribution adds to the BNI KUR distribution portfolio in 2020, which as of 31 July 2020 has reached IDR 9.76 trillion and touched 257,616 recipients throughout Indonesia.”

This is in line with BNItuDigital slogan. BNI is also innovating in the field of financing, which can now be done digitally using BNI MOVE, so that the credit process at BNI is easier, simpler, and faster. This application is a new hope for MSME players, including those in remote areas, to survive and succeed in the midst of pandemic. Not only that, BNI hopes BNI MOVE application will also contribute to accelerating the PEN program. That way, she hopes, the national economy can quickly improve.

For more information, please contact :
Corporate Secretary BNI
Phone: 021-5728387


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