BNI is Supporting the Alsintan Program to Strengthen the Transformation of Agriculture and Food Estate

JAKARTADAILY.ID – Indonesian Ministry of Agriculture is partnering with PT Bank Negara Indonesia (Persero) Tbk. or BNI and launching the Agricultural Equipment and Machinery Taxi (Alsintan) program.

Alsintan is a model of business governance management for agricultural machinery services with a system for renting or owning machinery for machinery through a banking credit scheme.

The Ministry of Agriculture and BNI, which are listed on the Indonesia Stock Exchange with BBNI stock ticker, agree on empowering farmer institutions through strengthening capital, relaxing financing, and mentoring. The two institutions collaborate through the integration of partners and/or fostered data to facilitate the application for the People's Business Credit (KUR) for Alsintan Taxis.

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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 in the agriculture sector was witnessed directly by President Joko Widodo, Minister of Agriculture Syahrul Yasin Limpo, and BNI President Director Royke Tumilaar in Gresik, East Java, on Monday, August 22, 2022.

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

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President 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.

The 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.

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"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.

On the same occasion, BNI's President Director Royke Tumilaar 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.