Construction Guarantee (CG) and Bank Negara Indonesia (BNI), one of the three largest state-run banks in Indonesia, agreed to strengthen their bilateral relations by jointly cooperating in such areas as providing financial guarantees to the Korean construction companies operating in the S.E. Asian country and the two institutions overseas operations, CG said recently.
CG said Director Bae Kil-won, in charge of planning for CG, held a meeting with Senior Vice President Rahmad Hydayat of BNI in Jakarta and discussed matters related to joint cooperation in extending financial guarantees to Korean builders operating in Indonesia. At the meeting that took place at BNI’s head office in the Indonesian capital, Hydayat said BNI got the approval from financial authorities in Seoul to open a branch in Seoul and he hoped that CG and BNI would further strengthen their mutual ties in the days ahead as strategic partners in overseas operations in view of the strategic value of trade relations between South Korea and Indonesia.
In order to take steps to realize the strong cooperative tie-ups with CG, BNI has decided to recognize CG’s guarantees as “official” and draw up the credit facility for CG based on its credit guarantee values. Korean construction firms in Indonesia will be able to submit their CG guarantees to BNI for BNI’s guarantees and BNI will also provide favorable issuance fees and on their collaterals under its policy to provide positive support.
CG, in the meantime, plans to reduce the process of issuance of guarantees to two steps, from more than three steps, once it gets the credit facility from BNI, which will cut expenses for the Korean builders and cut the time it takes to get the guarantees issued.
CG has been operating its office in Indonesia since last year and plans to build cooperative relations with as many foreign financial institutions as possible to expand the financial guarantee support for the Korean builders operating overseas.
In the meantime, CG held the 28th Korea-Japan Construction Guarantee Institution meeting with the East Japan Construction Guarantee Co. on June 10. Director Takahiko Ohori led the delegation of the Japanese construction guarantee firm, which is engaged in the issuance of guarantees for advance payments and construction contracts.
The meeting was first launched in 1988 designed to promote cooperation between the construction guarantee organizations in Korea and Japan and conduct R&D on the guarantee systems in the two countries.
In his opening speech, Planning Director Park Kil-won of CG said he sincerely welcomes the Japanese delegation to the meeting and hoped to have a wide-ranging discussion at the meeting, as the construction markets in both Korea and Japan appear to be reviving after an extended slump.
The subjects of discussions should include the roles to be played by the construction guarantee firms to support the recovery of the construction market and for further development of the construction industries in both countries by exchanging information between them.
Director Ohori said in his speech that he is glad for the Japanese delegation to visit CG, the highest construction guarantee organization in Korea, and hoped that the meeting would contribute to the further growth of the construction guarantee markets in both Korea and Japan, and at the same time, the development of the economies of the two neighboring nations through the exchanges of information on the construction industry and construction guarantee markets in Korea and Japan.