Korean Link Business KB Bukopin Stimulates Indonesia's Economic Growth To The Next Level

Photo: Doc. KB Kookmin Bank

JAKARTA - Foreign Direct Investment (PMA) dominates direct investment in Indonesia in early 2022. During the first quarter of 2022, the Ministry of Investment/Investment Coordinating Board (BKPM) recorded an investment realization of IDR 282.4 trillion, this value grew by 28.5 percent on an annual basis. annually (year-on-year/yoy) or 16.9 percent on a quarterly basis (quarter-to-quarter/qtq), as well as being the highest record in the last decade.

Comparatively, domestic investment (PMDN) is valued at IDR 135.2 trillion, growing 25.1 percent compared to the first quarter of 2021. According to Investment Minister Bahlil Lahadalia, this is evidence that investor confidence in Indonesia is getting stronger.

"The media, please note, globally or abroad, they have started to feel comfortable and have started to believe in the stability of state policies in encouraging investment into Indonesia. What is the evidence for this? Compared to the fourth quarter of 2021, it grew 31.8 percent," Bahlil said at the conference. press Investment Realization Quarter I 2022 online, some time ago.

Foreign Direct Investment (FDI) can have a positive impact on investment recipient countries such as the entry of new capital to help fund various sectors that are underfunded, create new jobs so that unemployment can be reduced, and increase state revenues through taxes. In terms of production activities, there are also influences such as transfers in management, production, and technology in production.

The Bank continues to issue plans to accommodate foreign investments, such as the Korean Link Business program issued by KB Bukopin. Through various banking products and services, this corporate ecosystem program in the business world is designed to help Korean companies operating in Indonesia grow their business.

Many facilities are provided such as credit products (lending), deposits (funding), bank guarantees, as well as trade finance facilities such as letters of credit (LC), Domestic Documentary Letters of Credit (SKBDN), and standby LCs.

This initiation was supported by KB Kookmin Bank from Korea itself as the Ultimate Shareholder. Currently, there are more than 2,000 companies from South Korea in Indonesia, both large and small. Of that number, there are 190 companies that are customers of KB Kookmin in South Korea.

KB Bukopin noted that as of the first quarter of 2022, Korean Link Business has captured 51 South Korean corporations in Indonesia, 44 of them in fundraising, and 7 others in lending and trade finance. Big names entered the list, including Krakatau Posco, Lotte Group, LG Electronics, Hyundai, Hankook Tire, Lock&Lock, and many more.

One of the supports given is to Hyundai, a Korean car manufacturer. Through the Palembang branch, KB Bukopin has established cooperation in financing the purchase order of vehicle units to the Hyundai Indonesia ATPM. Currently, Hyundai is the pioneer of the most affordable electric car for the Indonesian market through the Hyundai Kona and Hyundai Ioniq products.

Based on GAIKINDO data, the Battery Electric Vehicle (BEV) model from Hyundai managed to dominate retail sales with a market share of up to 87.3 percent.

With the development of electric cars in Indonesia, of course, the impact on KB Bukopin will also be large. KB Bukopin itself is close to Hyundai in that the Hyundai Center is a debtor of KB Kookmin Bank in Korea.

Since the Korean Link Business was launched in the first quarter of 2021, the level of fundraising increased by IDR 6.3 trillion to IDR 7.8 trillion. Meanwhile, credit distribution until December 31, 2021, has reached IDR 420 billion.

In addition to accommodating South Korean businesses and corporations operating in Indonesia, KB Bukopin believes that the Korean Link Business program has succeeded in supporting Indonesia's economic growth and at the same time strengthening KB Bukopin's existence to become the largest bank in Indonesia and globally.

After improving services and products under a new strategy entitled Next Level Banking and releasing Television Commercial (TVC) in collaboration with aespa, KB Bukopin is ready to continue their momentum of change.

Next, KB Bukopin will release their latest banking application which is expected to surpass the current application and will provide experiences outside of core banking services such as holding virtual concert events, live concerts, and entering the world of the metaverse.