Jakarta, 11 April 2021 -- PT Bank Negara Indonesia (Persero) Tbk (BNI) is a State-Owned Enterprise (SOE) which has the largest network of Overseas Branch Offices (KCLN) in the country. Currently, the Company has six KCLNs, namely Overseas Branch Offices in Singapore, Hong Kong, Tokyo, Seoul, London and New York and one Sub-Branch in Osaka in Japan, two Remittance Centers in Singapore and one Remittance subsidiary in Hong Kong.
The Treasury dan International Director of BNI, Henry Panjaitan said, in the last ten years, the international business model at BNI has undergone a transformation where 90% of KCLN's credit assets are Indonesian-related businesses, both Indonesian companies that go international and suppliers and buyers from top tier companies in Indonesia.
This transformation effort has yielded positive results where revenue from BNI's international business grew by 26.8% in 2020 even though Indonesia was in the midst of the Covid-19 pandemic. KCLN as one of the main contributors to BNI's international banking also recorded profit growth of 67.5%, which came from net interest growth (NII) which grew by 61.6% and non-interest income (FBI) of 49.7%. "We still target KCLN to grow in double digits in 2021 by taking advantage of the momentum of economic growth in emerging markets and the trend of low interest rates that will continue this year," he explained.
International Business Development
BNI's international business has three strategic values, namely as a Source of International Funding, Go Global assistance and Gate to Investment. To strengthen this strategic value, Henry said that BNI will carry out several developments in the last few years, including the establishment of a Syndication Desk and the establishment of a BNI Sekuritas subsidiary in Singapore and the formation of a Foreign Direct Investment (FDI) Advisory Unit at KCLN.
"We will also strengthen the International Desk with the formation of Korea and China Desks. In addition, the role of Japan Desk which was established in 2012 will be enhanced to support Tokyo KCLN which was appointed as one of the Appointed Cross Currency Dealer (ACCD) banks in the Local Currency Settlement (LCS) between Indonesia and Japan," he added.
As a development agent, BNI also synergizes with state-owned companies in facilitating SOEs to become global players by establishing an Indonesia Incorporated office in Hong Kong. On the MSME side, BNI will further synergize KCLN with domestic business units in helping debtors to penetrate the global market and provide financing to Export MSMEs and Indonesian Diaspora.
International Business Digitization
The Covid-19 pandemic has prompted an increase in digital international banking transactions. BNI already has a trade application that allows customers to make transactions without the need to come to BNI office, namely BNI Trade Online application.
In remittance transactions, BNI has also expanded digital services to KCLN (Overseas Branch Office) in 2018 with the launch of BNI Mobile Remittance (BNI More) at KCLN Singapore which was then followed by Hong Kong KCLN and Seoul KCLN in collaboration with several fintech companies and the launch of OTR Mobile Remittance at in 2019, transactions for money transfers abroad can be made through the menu in BNI Mobile Banking. This overseas money transfer service via mobile banking is the first among Indonesian banks.
"In the future, we will focus on digitization at KCLNs, which we have started by integrating KCLN’s core banking system with the Head Office so that in the future we can provide cash management services for customers abroad," Henry concluded.
For more information, please contact:
BNI Corporate Secretary