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BNI advocates financial literacy and supports MSMEs looking to go global
Efforts to increase the chances of market penetration by micro, small and medium enterprises (MSMEs) intending to go global require supporting programs on financial literacy.
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The wooden furniture business is a major contributor to Indonesia’s exports to the United Kingdom. (JP/P.J.LEO)
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fforts to increase the chances of market penetration by micro, small and medium enterprises (MSMEs) intending to go global require supporting programs on financial literacy. Through its London branch, State-owned PT Bank Negara Indonesia (Persero) Tbk. (stock code: BBNI) is improving its mentoring programs to help MSMEs accelerate through the economic recovery period.
The Indonesian Ambassador to the United Kingdom and Ireland Desra Percaya said that during the pandemic, Indonesia had seen an increase in exports and a steady surplus. In other words, Indonesia’s exports (dominated by wood products and furniture) to the UK far outnumber imports.
“But the value still does not represent the true potential of our exports and there is still room for improvement, especially for MSME products,” said Desra.
To increase trade volume with the UK, MSMEs are encouraged to improve the quality of their products. For this reason, the Indonesian Embassy to the UK is also providing assistance, promotion and cooperation with financial institutions to MSMEs. One of these partnerships involves the BNI branch in London. Apart from product quality, endorsements and financial access play a pivotal role for MSMEs, especially in terms of capital and transaction.
"The Indonesian Embassy acts as a facilitator that provides input on opportunities and obstacles that Indonesians businesses usually face Then, we will initiate business matchmaking sessions with potential buyers from the UK for selected products such as spices, furniture, wood and textiles," Desra said.
Indonesia’s lack of exposure is one of the challenges faced by entrepreneurs. The Indonesian diaspora in the UK however, can play an instrumental role in helping Indonesian products achieve widespread recognition.
“There are 70 members of Indonesia’s diaspora in the field of art, culture, services and culinary businesses that make up ISME UK [Indonesian Small-Medium Enterprises Community UK] so they can promote their products. We then proceed by expanding their network so MSMEs operate properly under local government policies and the UK market with BNI’s credit financing.” Desra added.
BNI London’s general manager, Roekma Hari Adji said MSMEs would continue to grow, especially with rapid digitalization. But BNI understood that enterprises could launch even further with added financial solutions and financial literacy.
"We will maximize BNI's capabilities to help MSMEs that want to go global. With BNI Xpora for example, we strive to provide end-to-end solutions for MSMEs so that they can penetrate the global market," said Adji.
He added that financial literacy enabled MSMEs to understand the global playing field better. The lack of financial literacy is often a barrier for MSMEs when upscaling or attempting to penetrate the global market.
“International desks and trade finance specialists at BNI are ready to guide customers in financial literacy dealing with global transactions and risk management, as well as general tips on doing business on a global scale.” Adji added.
BNI is also trying to connect Indonesian MSMEs with diaspora-run MSMEs in the UK through business matching. Adji stated that connecting local MSMEs with UK-based Indonesian businesses could be another step in helping increase exports to the UK.
“Indonesian products still require an introduction when entering the UK. So, BNI has prepared a diaspora MSME ecosystem where they can join international expos in England.” Adji said.
The London BNI branch is also connecting with the Indonesian Embassy, bringing products under BNI’s wing to be introduced. BNI is actively participating in economic diplomacy, believing that good relations between the two countries could open up opportunities for MSMEs.
“We want to be a pillar in MSME development to help small businesses go global by collaborating with banks along with the Indonesian Embassy and other key stakeholders. MSMEs can achieve stronger market penetration by partnering with diaspora MSMEs, understanding market trends in the UK and introducing MSME products from Indonesia to the UK.” Adji concluded.
