Indonesia’s bank expected to facilitate trade with S Korea of ​​up to 30 bln USD

Jakarta (Indonesia Window) – An Indonesia’s state-owned bank, Bank Negara Indonesia (BNI), is expected to work on trade potentials between Indonesia and South Korea, which are predicted to reach 30 billion U.S. dollars this year.

The value of trade between the two countries in 2021 was recorded at 17 billion dollars, Indonesian Ambassador to South Korea Gandi Sulistiyanto said in a written statement received here on Thursday.

The ambassador is optimistic that the trade value would increase to 30 billion dollars this year.

“BNI’s cooperation with South Korea is excellent, especially as BNI already has a branch here. This cooperation can create syndications and trade agreements, so that it can support BNI’s business in the future even better,” Ambassador Gandi said.

He hoped that the Indonesian government and the House of Representatives (DPR) would soon ratify the regulations of Indonesia-Korea Comprehensive Economic Partnership Agreement (IK-CEPA).

BNI continues to expand its international business by creating new business opportunities in line with the higher economic growth in Indonesia.

One of these efforts is to build synergy with KB Kookmin Bank, which has been confirmed in a Memorandum of Understanding (MoU).

The cooperation document was signed by BNI’s Treasury and International Director Henry Panjaitan and Head of the Global Business Group of KB Kookmin Bank, who also serves as Chief Global Strategy Officer/Senior Managing Director of Kookmin Bank Financial Group, Nam Hoon Cho, on May 30, 2022 in Jakarta.

“BNI continues to improve its role as Indonesia’s global bank with one of its strategic steps by collaborating with KB Kookmin Bank as the number one bank in South Korea,” Henry said.

The business cooperation, according to him, included treasury transactions, syndicated loans, trade finance, funding in local currencies and the exchange of information for customers who wish to trade or invest in the countries of origin of the two banks.

In addition, this collaboration strengthens BNI’s position as a development agent by facilitating South Korean investment into Indonesia, which has increased rapidly in recent years.

With this collaboration, BNI can also facilitate Indonesian exporters to expand their markets in South Korea, by connecting them to South Korean importers who are customers of KB Kookmin Bank.

For KB Kookmin Bank, the efforts to enter the Indonesian market have been started since 2018 by acquiring Bank Bukopin shares, with the current total ownership of Bank Bukopin at 67 percent.

Reporting by Indonesia Window