Strengthening Agriculture And Food Estate Transformation, BNI Supports Alsintan Taxi Program

JAKARTA - The agricultural sector is entering a period of accelerated transformation that further strengthens productivity and national food stability. The role of banking players in carrying out the intermediary function is increasingly crucial, especially in disbursing investment loans and providing appropriate financial solutions for farmers.

The Ministry of Agriculture (Kementan) together with PT Bank Negara Indonesia (Persero) Tbk. or BNI (BBNI) launched the Agricultural Equipment and Machinery Taxi (Alsintan) program, which is a model of business governance management for alsintan services with a rental service system or alsintan ownership through a banking credit scheme.

The Ministry of Agriculture and BNI agree on empowering farmer institutions through strengthening capital, relaxation of financing, and assistance. The two institutions collaborate through the integration of partner and/or fostered data to facilitate the application for the People's Business Credit (KUR) for Alsintan Taxis.

This collaboration was confirmed by the signing of a Memorandum of Understanding by the Director General of Agricultural Infrastructure and Facilities of the Ministry of Agriculture Ali Jamil and BNI's Director of Institutional Relations Sis Apik Wijayanto. This strategic collaboration was witnessed directly by President Joko Widodo, Minister of Agriculture Syahrul Yasin Limpo, and President Director of BNI Royke Tumilaar in Gresik, East Java, Monday 22 August.

The cooperation scheme in the Alsintan Taxi financing pattern can be processed using KUR with a maximum credit of up to Rp. 500 million, 6% interest per year with an additional 3% interest subsidy which is valid until December 31, 2022. The pattern of credit installment payments is also adjusted to the harvest season.

Jokowi is optimistic that the Alsintan Taxi Program will be more feasible with the help of the banking system, especially BNI. He believes that many regions and villages will be able to buy agricultural equipment to increase production in the agricultural sector.

"We will try this [Alsintan Taxi Program]. If it is supported by bank interest that we subsidize, I think there will be many regions, villages, and regencies, whose farmers are willing to buy agricultural tools and machines," he said.

Minister of Agriculture Syahrul Yasin Limpo said that agriculture has entered an era of technological transformation in which the use of Alsintan is increasingly being put forward to increase productivity.

"We appreciate BNI being proactive in improving the performance of the national agriculture and food sector. Not only is BNI able to distribute KUR, but BNI has also provided productive credit to Alsintan providers so that BNI is able to create various banking solutions that are more suitable for this national primary sector," he said.

Royke said the position of the agricultural sector was becoming more strategic this year. Not only because of the increasing need for national consumption, but also because of global conditions that disrupt the food supply chain.

According to him, this collaboration is one of BNI's commitments as a development agent to support resilience as well as strengthen the food agriculture sector.

"We thank the government for the opportunity for BNI to play a more active role in accelerating the transformation of the agricultural sector. We believe this program can help increase national food production," he concluded.