Jakarta. State-owned bank BNI announced Friday that it had inked a financing partnership worth Rp 300 billion or around $17.8 million with Siemens Indonesia to strengthen the national electricity and industrial ecosystem.

The Rp 300 billion financing facility will go to Siemens partners and distributors.

Under this distributor financing corporate agreement, BNI will provide project financing and working capital financing. The money is expected to help project implementation and maintain the cash flow of Siemens' official distributors in Indonesia.

Signing the agreement were BNI Corporate Banking 1 Division Head Andrean Palonggam and Siemens Indonesia Chief Financial Officer Yudy Liz Mawuntu.

According to BNI Corporate Secretary Okki Rushartomo, this collaboration aligns with BNI's strategy to expand business ecosystem-based financing, particularly for global corporations that play a strategic role in the development of the national electricity, technology, and manufacturing sectors.

"Through this collaboration, BNI ensures structured and competitive financing support for Siemens Indonesia's partners and distributors, so that strategic projects can run optimally and sustainably," Okki said.

Under the distributor financing scheme, BNI distributes real transaction-based financing to Siemens distributors. This scheme is considered to have a more measurable risk profile because it is supported by long-term business relationships between principals and distributors, as well as clear project needs.

Siemens Indonesia is a subsidiary of Siemens AG, a German global technology company that has operated in Indonesia since 1973. The company operates in the electronics manufacturing and technology sectors and has been a BNI customer since 2018. Its operations are based in East Jakarta and supported by approximately 500 employees.

During its operations in Indonesia, Siemens has become a strategic partner in the development of the electricity and industrial sectors through electrification, automation, and digitalization solutions. These initiatives support the energy transition and a more efficient and sustainable industrial transformation.

This kind of ecosystem-based financing collaboration benefits all parties, including principals, distributors, and banks, by encouraging healthy and measurable business growth, according to Okki.

"BNI will continue to expand its ecosystem financing to support strategic sectors such as energy, electronics, infrastructure, and manufacturing, while strengthening BNI's role as a key financial partner for national and global corporations," he said.