Jakarta, 9 August 2021 -- The export market is expected not only to become a field for large Indonesian companies to expand their business, but also to be penetrated by micro, small and medium enterprises (MSMEs). The one that has a role to facilitate MSMEs penetrating the export market is PT Bank Negara Indonesia (Persero) Tbk (BNI) which has branch offices in a number of countries. Minister of State-Owned Enterprises (SOEs), Erick Thohir said, BNI was given a special assignment to become Indonesia's international bank. Erick praised BNI's steps for paving the way for MSMEs to go global and penetrate the global market through its branch office in Singapore; Hong Kong; Tokyo, Japan; Seoul South Korea; London, England; and New York, United States.
There is also another BNI’s breakthrough, namely Xpora, a business solution for MSMEs who are starting a business to those who want to expand the market. In addition, Minister of State-Owned Enterprises has assigned BNI to work on potential migrants or Indonesian diaspora to promote the class. Erick believes that the synergy between the diaspora and SOEs, specifically BNI, will provide opportunities for them to advance to become entrepreneurs abroad. Not long ago, SOEs Minister encouraged BNI’s existence in London so that it could help the MSME diaspora as well as Indonesian entrepreneurs to develop their businesses in the United Kingdom and Europe. This is also supported by Indonesia’s Embassy (KBRI) in London and Indonesia Small-Medium Enterprises in the United Kingdom (ISME-UK).
"This is a new era, the digital era. If we want to learn and collaborate, we can get opportunities, access to capital, skills, and even market access both at home and abroad. For example, business opportunities no longer rely on neighbors as a market but also throughout Indonesia, even at the global level, as what BNI has done, which has paved the way for MSMEs to go global and penetrate the European market through London," he explained.
Diaspora and BNI Xpora
BNI’s President Director, Royke Tumilaar mentioned "Currently, loans at BNI’s overseas branches are recorded at US$3.7 billion, which 93% of the loan portfolio is Indonesia-related business." He ensures that BNI’s overseas branches can play a role in the development of Indonesian MSMEs who are domestic BNI customers, among others by providing advisory services, especially regarding market insight, access to potential buyers, local regulations related to custom and tax, and others. One of the Indonesian Diaspora business actors who until now has obtained financing facilities from BNI Foreign Branch Offices is Surya Trading Co., Ltd. - Hong Kong which is engaged in food and beverage retail trade. Thanks to the support and total banking solutions provided by BNI Hong Kong, Surya Trading Co., Ltd. currently has 11 stores / supermarkets located in Hong Kong and actively supplies daily necessities (especially food and beverage) of Indonesian production to 80 affiliated stores in Hong Kong.
“To support the program, a special financing scheme has been prepared, and overseas branch offices have explored the potential for financing for diaspora MSMEs in their respective countries. In the future, financing for the Indonesian diaspora will be a new source of growth in all overseas branch offices,” said Royke.
Royke said that his party is targeting to increase the portion of MSME financing from 20.7% in 2020 to 30% in 2024. In this case, BNI has developed a financing scheme by providing several relaxations on credit policies aimed at export-oriented MSMEs, both direct and indirectly exporters, including to the diaspora. In responding to the challenge of helping MSMEs advance to class and go global, BNI took the initiative to form Xpora, which is an acronym for Export and Diaspora, which is BNI's one stop shopping solution to provide integrated services for MSME partners. Royke said that currently Xpora has been piloted in 7 locations, namely Medan, Jakarta, Bandung, Solo, Surabaya, Denpasar, and Makassar. There are three main values that form the foundation for Xpora, namely Go Productive, Go Digital, and Go Global.
Xpora has eight main solutions for MSMEs. These include fast and quality services, capacity building through education, mentoring, development of MSMEs and access to fintech business tools, as well as business diagnostics, easy and integrated financial solutions, easy market access via collaboration with e-commerce and government agencies. In addition, digital activation through collaboration with Xpora partners and comprehensive digital services, cashless transaction solutions via digital portals with easy access to e-banking channels, export business empowerment with access to incubation and B2B matchmaking with potential BNI customer buyers located in overseas branch offices, as well as export-oriented solutions including low-cost trade products.
For more information, please contact:
BNI Corporate Secretary
Phone: 021-5728387
Email: bni@bni.co.id