REPUBLIKA.CO.ID, JAKARTA – Bank Negara Indonesia (BNI) plans to open three branches in three cities in Saudi Arabia. The opening of the new branches will cost 20-25 million USD or 180.74 – 225.93 billion IDR per branch.
“The investment value depends on the branch or the affiliation with local bank,” the President Director of BNI, Gatot M Suwondo, said after signing memorandum of understanding with Bank Bukopin in Jakarta on Wednesday.
The potential of remittances from Indonesian workers in Middle East regions becomes the main reason. The three cities targeted by BNI are Jeddah, Makkah, and Madina. Other international BNI branches are in Hong Kong, Singapore, Tokyo, New York, and London.
The talk on license issue between BNI and the central bank, Bank Indonesia, is now in progress. The plan has been put into business plan proposal (RBB) 2012 proposed to BI. RBB BNI is still on last stage of study in BI and it is ready to approve by the early March.
“The potential of remittance is very huge. If we can cooperate with domestic bank, it will be bigger,” Suwondo said. The potential of remittance from Indonesia labor hits 8 trillion IDR per year.
Suwondo expects the BI will support its plan to set up the branches, including conventional and Islamic banks. The BNI international trading transaction increases 24 percent with the value of 19.4 billion USD.
BNI has signed the cooperation of international transaction banking with Bank Bukopin. The Bukopin customers can use five BNI branches in abroad to hold a transaction.
The President Director of Bank Bukopin, Glen Glenardi, believes that the cooperation will give the advantage and easiness to both of the customers. “It is easier for the customers to have trade finance transaction and local and international remittance,” he explained.
Bank Bukopin can also use BNI Smart Remittance network in five international branches and Bank Bukopin network and its partner in Indonesia as payer agent. Bank Bukopin has 422 branches in 22 provinces in Indonesia.
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