The Indonesian Chamber of Commerce and Industry (Kadin) and more national banks can follow BNI’s aggressive lead in helping MSMEs reap the profits from the international market.

Throughout January-May, BNI successfully recorded 30.62 percent yearly growth in export transaction volume. Meanwhile the total amount of overseas credit topped at US$ 3.9 million, enjoying a praiseworthy 18 percent growth in May.

The vice chairwoman of KADIN Indonesia for international relations, Shinta Kamdani, showed her appreciation for BNI’s proactive role in propelling MSMEs to go global. She said BNI was an example for private banks to follow in helping MSMEs raise their competitiveness and reach the international market.

“BNI’s steps as a pioneer should set an example for other banking institutions in Indonesia to follow. The objective is to multiply the volume transaction of MSMEs until they expand further into the international market,” she explained on Friday.

Shinta added that leveling up MSMEs was no easy task. Banking institutions will need to address considerable challenges, such as a lack of financial support, lack of technological access, shortage of skilled human resources and limited resources to reach the global market.

The problems would require a joint effort by the government and various banking institutions. Banking, according to Shinta, plays a vital role in extending financial services through various customized loan schemes using the latest technology.

“In this case, BNI, as the government’s development agency, plays a significant role in ensuring the 30 percent increase of MSME credit ratio as hoped by President Joko [‘Jokowi’] Widodo,” she continued.

BNI president director Royke Tumilaar said BNI had taken several concrete steps throughout this year to encourage MSMEs to go global. They include a collaboration with Hong Kong’s largest e-commerce platform, TradeBeyond Limited.

This collaboration aimed to provide space for local MSMEs to gain attention from the people of Hong Kong and other users from various countries.

In addition, BNI also cooperated with the International Chamber of Commerce (ICC) and ICC Indonesia to strengthen the capacity and marketing network of MSMEs. BNI was the preferred bank to optimize all overseas offices with their worldwide coverage.

BNI has also established a cooperation with the Korean Importers Association (KOIMA) to strengthen its database and conduct more intensive business matching between Indonesia and South Korea.

Recently, BNI also entered into a collaboration with the Indonesian Export Financing Institution (Indonesian Eximbank) to support its fast track financing scheme. The scheme facilitates a maximum financing of Rp 25 million ($1.67 million).

“To increase MSMEs’ exports, BNI recruited a community of diaspora MSMEs in York

York, Hong Kong, Korea and Amsterdam. In fact, BNI has started to distribute diaspora loans,

which we will continue to encourage in the future," Royke said.

Indonesia Eximbank continues to support BNI’s efforts in encouraging MSMEs to penetrate the global market.

BNI institutional relations managing director Chesna F. Anwar said collaborations with banking institutions, including BNI, would open a wide opportunity for MSMEs to reach the global market.

“Partnerships with banks in general will provide opportunities for MSMEs to reach the global stage by providing various services, such as giving them information about international debtors’ businesses, export facilities and more,” Anwar explained.

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