Jakarta, February 19, 2019 --- In an effort to continue to boost the growth of Trade Finance along with Fee Based Income, Bank Negara Indonesia (Ltd.), (BNI) through its overseas branch networks in Myanmar has strengthened its banking services through the issuance of advance payment bonds and guarantee of performance bonds to foreign branches of PT Wijaya Karya Ltd. in Myanmar.
The issuance of the facility was managed to support the Myanmar Railways (MR) development project in Yangon, Myanmar. The construction of the 45 kilometer project is estimated to take two years.
This communiqué was stated by BNI Director of Treasury & International Banking Rico Rizal Budidarmo through a statement published in Jakarta, Tuesday (February 19th, 2019).
Rico revealed that the issuance of a guarantee of down payment and guarantee of performance bond was inseparable from the cooperation that had been established between BNI and Myanmar Foreign Trade Bank (MFTB). MFTB is the presently the largest bank owned by the Myanmar government.
BNI's role in the project is essential to support the implementation of economic integration in ASEAN through the agreement of the ASEAN Economic Community (AEC). "Furthermore, the results of the business expansion of the project will also be among contributions to foreign exchange for Indonesia," Rico said.
The volume of BNI's Trade Finance transactions has grown by 12.5 percent, from US$ 40 billion in 2017 to US$ 45 billion in 2018. This progress has contributed to the growth of Fee Based Income sourced from Trade Finance, which amounted to 25.9 percent, or Rp 1.72 trillion in 2017 to Rp. 2.18 trillion in 2018.
Rico added that Fee Based Income obtained by BNI in 2018 amounting to Rp 2.18 trillion was dominated by export transactions, which amounted to Rp 1.6 trillion (73.4 percent). Meanwhile, import transactions contributed 26.6 percent or Rp. 579 billion. The transaction volume of US$ 45 billion in 2018 was also dominated by export transactions in amount of US$ 26 billion (57.6%) and the rest by import transactions amounting to US$ 19 billion (42.4%).
BNI is one of the largest state-owned banks in Indonesia and as a bank with the widest international network, BNI presently has six branch offices abroad, namely in London, England; New York, United States; Singapore; Hong Kong; Tokyo, Japan; Seoul, Korea; 1 sub-branch in Osaka, Japan, and 1 representative office in Yangon, Myanmar. BNI services are also supported by Remittance Representatives spread across Kuala Lumpur, Sarawak, Perak, Johor, Sabah, Hong Kong, Taipei, Seoul, Jeddah, Riyadh, Dubai, Doha and Amsterdam.