Jakarta, 27 January 2021 -- Banks are experiencing significant challenges in carrying out their intermediation function due to the Covid-19 Pandemic. To optimize the intermediation function again, banks need to carry out transformations in order to answer various problems that arise with solutions.
That is the common thread expressed by the Minister of Finance of the Republic of Indonesia, Sri Mulyani Indrawati in Jakarta, Wednesday (27 January 2021) during sharing at the Business Meeting BNI 2021 and the BNI Transformation Kick Off 2021.
Sri Mulyani noted that due to the pandemic, national banks experienced a slowdown in credit to the lowest level due to decreased demand for bank financing in line with depressed corporate performance, as well as increasingly cautious banking attitudes.
Working Capital Loans have even entered a contraction zone since June 2020, which can exacerbate efforts for economic recovery. Economic recovery cannot be accelerated solely by relying on the state budget. Therefore, measures are needed to normalize credit growth.
In facing various shocks, banks have prepared themselves with sufficient capital. Banks also continue to carry out efficiency as a positive impact of digitizing services. They also continue to adjust interest rates, which are expected to maintain consistency, in order to normalize credit.
Currently, changes in the emerging ecosystem are taking place, such as digital technology, shadow banking, and cloud computing. Banks must understand the changes in this ecosystem and take structural measures, and don't be complacent because they feel big. Structural strengthening, digital transformation and work transformation are needed.
"The goal is because we want the banking sector to remain resilient and to be an efficient intermediary agent while remaining competitiv. I hope that in this pandemic situation, the banking sector and the business world will reflect and look carefully at the changes that have occurred, capture positive changes and continue to strive to develop business models and competitiveness, so that not only can adapt but can get out of the crisis more quickly and stronger," she said.
On the same occasion, the Minister of SOEs of the Republic of Indonesia, Erick Thohir said that the Association of State-Owned Banks (Himbara) has their respective focus, where BNI will focus on business expansion in the global market. By relying on a network of overseas branch offices, BNI can help Indonesian entrepreneurs ranging from the MSME segment to corporations to Go Global, including SOEs.
"Of course, the presence of BNI, as a state-owned bank in the international arena, will accelerate the SOEs Go Global program," he said.
Not only launching local entrepreneurs, BNI can also finance small businesses owned by diaspora abroad. There are around 6.64 million diasporas in 16 countries that can be helped by the presence of BNI. Of course, the role of the Indonesian Embassy, Indonesia Trade Promotion Center (ITPC), Indonesia Investment Promotion Center (IIPC), and diaspora associations will strengthen this collaboration.
Optimistic For 2021
BNI’s President Director, Agus Martowardojo said, "Measures and transformations are being prepared by BNI to ensure the company remains able to grow in a sustainable manner. Management has set a strategy to make BNI a Financial Institution that excels in services and performance in a sustainable manner," he said.
Meanwhile, BNI’s President Director, Royke Tumilaar emphasized that during a pandemic like this time, where business in general is declining, BNI has taken the initiative to carry out transformation as an effort to accelerate the improvement of financial performance in a sustainable manner, as well as perfecting BNI's long-term plans. BNI Transformation Program is based on the BNI RACE values, namely Risk Culture, Agile, Collaboration, and Execution Oriented.
"With the BNI RACE values that are implemented daily, BNI can compete with competitors, prepare to go faster, lead the competition, and win," said Royke.
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BNI Corporate Secretary