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BNI’s potential work on RI-South Korea trade could rake in up to $30 billion
PT Bank Negara Indonesia (Persero) Tbk. or BNI (stock code: BBNI), is ready to jump on Indonesia-South Korea trade, which is predicted to reach US$30 billion this year.
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Inside BNI’s Seoul branch office. (Photo: bni.co.id)
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T Bank Negara Indonesia (Persero) Tbk. or BNI (stock code: BBNI), is ready to jump on Indonesia-South Korea trade, which is predicted to reach US$30 billion this year. Indonesian Ambassador to the Republic of Korea Gandi Sulistiyanto is already welcoming a collaboration between BNI and KB Kookmin Bank, which is set to boost not only the companies’ businesses but also the Indonesian economy in the long run.
He noted that last year’s trade value between Indonesia and South Korea had reached $17 billion. He was optimistic that the value would increase significantly to $30 billion this year.
“BNI’s relationship with South Korea is already very good, especially considering that BNI has set up a branch here. This cooperation can spark further synergies and trade agreements to further improve BNI’s business in the future. We’ve also observed that there is an abundant amount of investment from South Korea in Indonesia. There is potential for an increase in export-import opportunities between the two countries. I am very optimistic that the trade value this year can reach $30 billion,” Gandi said.
Gandi hoped that the Indonesian government and House of Representatives would be able to quickly ratify the legal umbrella for the Indonesia-Korea Comprehensive Economic Partnership Agreement (IK-CEPA). This partnership, he said, would be useful for attracting investors from South Korea more optimally and efficiently.
So far, BNI has been successful in expanding its business internationally by creating new business opportunities in line with Indonesia’s progressive economic growth. One of the company’s strategies includes collaborating with KB Kookmin Bank, as stated in a recent memorandum of understanding (MoU).
The MoU was signed by BNI treasury and international director Henry Panjaitan and KB Kookmin Bank global business group head and acting Kookmin Bank Financial Group chief global officer/senior managing director Nam Hoon Cho in Jakarta on May 30.
“BNI continues to improve its role as Indonesia’s global bank, with one of its strategic steps including a collaboration with KB Kookmin Bank as the number one bank in South Korea," said Henry.
Henry further explained that the agreement would encompass treasury transactions, syndicated loans, trade finances, funding in local currencies and the exchange of information for customers who planned to trade or invest in the two banks’ countries of origin.
In addition to improving the business transactions between two banks, BNI as a development agent will be able to facilitate the entry of South Korean investments into Indonesia, a trend that has seen a rapid increase in recent years.
“In the future, we hope that both banks can develop a closer relationship while continuing to yield business transactions that are beneficial to both parties,” Henry added.
The exchange of information for customers is also essential to this collaboration, with BNI acting as an Indonesian global bank that can facilitate Indonesian exporters looking to expand their business to South Korea. Among KB Kookmin Bank’s customers are South Korean importers that can act as access points to the South Korean market.
KB Kookmin Bank’s strategy to enter the Indonesian market was initiated in 2018 by acquiring shares of Bank Bukopin. Currently, the South Korean bank holds 67 percent of Bank Bukopin.
