Jakarta, 13 July 2020 --- As a state-owned bank that has the widest international network, PT Bank Negara Indonesia (Persero) Tbk (BNI) is able to become a source of international funding for business development of Indonesian companies abroad, which in turn boosts Indonesia's export growth. Funding for international business that can be collected by BNI until the end of Semester I 2020 reaches Rp 62 trillion.
In the last five years, BNI recorded international funding growth of 27.7% per year (Compounded Annual Growth Rate / CAGR). This was explained by BNI's Director of Treasury and International, Putrama Wahju Setyawan in Jakarta on Monday (13 July 2020).
Putrama said, BNI's international funding in addition to sourced from third party funds (DPK) customers of BNI's Overseas Branch Offices (KCLN) in six countries, also comes from BNI's ability to optimize cooperation with more than 1,300 correspondent banks worldwide. The Correspondent Banks assisted BNI in collecting non-conventional funding.
"The cooperation with these correspondent banks is in the form of Club Deal funding of US $ 500 million between BNI London Branch Office and several banks in Europe & Asia. KCLN also obtained Bankers' Acceptance funding facility, which is funding based on Trade Finance transactions, from correspondent banks in the country where the KCLN is located," Putrama said.
Contribution of Overseas Branch Offices
Apart from that, BNI through the International Desk unit and Tokyo Branch Office has a partnership with 54 Japan Regional Bank (JRB) where in the cooperation JRB placed funds in Tokyo Branch Office to be further used to fund Japanese companies investing in Indonesia.
Singapore, Hong Kong and New York Branch Offices also become members (direct participants) of the SGD, HKD, CNY and USD currency clearing systems. This makes BNI able to become a depository correspondent and provides cross-border payment facilities for foreign exchange banks in Indonesia and can accommodate foreign exchange funds for these Indonesian banks.
Particularly, New York Branch Office also listed itself as the first bank from Indonesia to issue a Global Certificate of Deposit (CD) with the launch of the Global CD program worth US $ 1 billion in 2020. The Global CD program is aimed at non-bank investors so that the funds obtained go into DPK category.
Putrama added that in addition to diversifying funding sources for BNI, the Global CD program can also increase the KCLN customer base. "Going forward, the funding strategy at KCLN will prioritize DPK growth while still with due observance of banking regulations in force in Indonesia, among others related to Short-Term Foreign Debt (ULN). The non-conventional funding strategy will be carried out by looking at the development of credit and third party funds and taking into account market conditions," concluded Putrama.
For more information, please contact:
Corporate Secretary BNI