BNI Conducts a Series of Strengthening the Governance of KUR Distribution

JAKARTA - PT Bank Negara Indonesia (Persero) Tbk or BNI has carried out a series of governance strengthening of the distribution of People's Credit (KUR) so that financing runs more accurately, measured, and in accordance with the principle of prudence. The strengthening is carried out starting from credit analysis, verification of prospective debtors, disbursement, monitoring of fund use, digitization of processes, to periodic audits.

BNI Corporate Secretary Okki Rushartomo said that this step is part of the company's commitment to maintaining the quality of credit distribution of government programs. BNI ensures that KUR is given to eligible business actors and is used for the purpose of financing.

"BNI continues to strengthen the governance of KUR distribution so that financing is truly accepted and utilized by eligible business actors. Strengthening is carried out from the credit analysis stage, verification, disbursement, monitoring of fund use, to credit quality evaluation," said Okki in a written statement.

Okki explained that one of the strengthening carried out by BNI was to apply credit analysis directly or one-on-one to farmers without involving collection agents (CA). Through this process, the bank can obtain direct information regarding the business profile, financing needs, payment ability, and the plan to use funds from prospective debtors.

In addition, BNI strengthened the pattern of credit distribution based on the ecosystem or ecosystem-based financing. In this scheme, BNI works with core companies which are BNI corporate customers and act as offtakers. The core company also supports business mentoring, absorption of production results, and monitoring of credit implementation.

"The ecosystem-based approach allows for assistance, business monitoring, and market certainty for farmers' production. Thus, financing is not only channeled, but can also support the sustainability of the debtor's business," said Okki.

BNI also applies a radius restriction to facilitate the Know Your Customer or KYC process, business verification, land monitoring, and monitoring of debtor activities after disbursement. This policy is intended so that the debtor identification and monitoring process can be carried out more closely and effectively by the relevant units.

In terms of technology, the credit process is carried out digitally so that debtor data can be monitored more accurately. Through this system, BNI can monitor the names of farmers, land locations, cultivation stages, business developments, to the use of credit by each debtor.

"The digitization of the credit process allows BNI to monitor farmer data, land location, cultivation stages, to the use of credit in a more measurable way. Monitoring and audits are also carried out periodically to maintain credit quality," said Okki.

In addition to digitization, BNI conducts periodic monitoring to ensure that the debtor's business is running according to plan, funds are used for the purpose of financing, and credit quality is maintained. The company also conducts regular audits on each credit granting to ensure that the distribution process has been in accordance with regulations, detects potential deviations early, and strengthens the accountability of all parties involved.

Okki added that the strengthening of governance was also in line with BNI's steps in following up on every indication of deviation objectively. In the context of the alleged KUR deviation case in Jember, BNI emphasized that the legal process that is running is a follow-up to the company's report to law enforcement after finding indications of deviation in the process of submitting and distributing credit.

"The Jember KUR case started with a report from BNI to law enforcement officials. BNI respects the ongoing legal process and is cooperative in the investigation process," said Okki.

BNI emphasizes the implementation of the zero tolerance principle against any form of fraud and violations. If there are internal and external parties who are proven to have committed violations, BNI ensures that it is followed up in accordance with the provisions of laws and internal company regulations.

According to Okki, the actions of individuals who are proven to have violated the provisions do not represent the company's policies or practices. BNI ensures that credit disbursement is carried out by referring to the principles of prudence, good governance, and applicable provisions.

As one of the banks distributing KUR, BNI emphasizes its commitment to continue supporting access to financing for productive business actors. Through direct analysis to farmers, ecosystem-based financing, limiting the monitoring radius, digitizing the credit process, periodic monitoring, and regular audits of each credit, BNI hopes that the distribution of KUR can run more measurable, transparent, and targeted. (ADV)