PermataBank & Chandra Asri execute Indo-Thai blockchain transaction

"PermataBank partners with Bangkok Bank (Thailand) supported Letters of Credit issuance of PT Chandra Asri Petrochemical Tbk in Indonesia to their supplier," the entities said in a joint media release.

The transaction was completed on the Contour network within several hours compared to the traditional paper-based method. All parties achieved a significant efficiency improvement from digital information exchange, process streamlining, and transaction traceability.

Chandra Asri is the largest integrated petrochemical producer in Indonesia and operates the country's only Naphtha Cracker that produces Olefins (Ethylene, Propylene), Pygas and Mixed C4, Polyolefins (Polyethylene and Polypropylene), Styrene Monomer, Butadiene, as well as Methyl Tert-butyl Ether (MTBE) and Butene-1. With blockchain technology, Chandra Asri can reduce processing time and further digitalise its LC processes, in line with the company’s strategy of embedding new technologies and executing a digital transformation to maintain its world-class standards, the release said.

PermataBank is the first bank in Indonesia to implement trade financing transactions through the blockchain system. In implementing this technology PermataBank collaborated with Contour, a blockchain-based company that provides services to more than 80 banks and companies across 17 countries in Asian, Middle East, and Europe.

“The successful transaction through blockchain technology with Chandra Asri is an achievement as well as a new breakthrough for the trade financing process in Indonesia. This is in line with our strategy to expand business scale by synergizing with Bangkok Bank and strengthening the business model by digitising that benefits customers’ needs. We are grateful for the trust given by Chandra Asri to this new technology that we have implemented,” Darwin Wibowo, director of wholesale banking at PermataBank said in a statement.

“We are delighted to partner with our long-term key relationship banks, PermataBank and Bangkok Bank to pioneer the first ever cross-border blockchain LC from Indonesia on Contour, the dedicated fintech platform. It is a key step towards the radical simplification and transformation of conventional trade finance which is ripe for disruption. This market-leading transaction marks the latest milestone of Chandra Asri’s digital transformation programme. As a key industry player, we are pleased to serve as the path finder to promote industrialisation and integration to boost economic growth,” Andre Khor, chief financial officer of Chandra Asri said.

“As one of Indonesia’s leading banks in digital innovation, PermataBank continues investing in the right technology capabilities in solving customer pain points. The use of blockchain technology in trade finance in collaboration with Contour is a reflection of our continuous commitments to bring the best banking experience for our customers delivering our brand promise, simple, fast, and reliable,” Abdy D. Salimin, director of technology and operations at PermataBank said.

“Blockchain technology optimises data flow securely and speedily between trading partners, significantly improves efficiency thereby optimising trade flow within the important trading networks. This connected digital trusted network is also a good place to find the right partners, expand the network of suppliers, buyers, and banks, accelerate and increase trade volume in the most efficient manner,” Salimin added.

Fibre2Fashion News Desk (GK)