Rancakmedia.com - Bank Permata is now using blockchain technology and has completed the first cross-border transaction between Indonesia and Thailand. The Company collaborates with Bangkok Bank PLC (Thailand) to assist PT Chandra Asri Petrochemical Tbk in Indonesia in issuing Letters of Credit (LC) to suppliers.
The LC issuance process, which previously required communication between the buyer, seller, Issuing Bank and Recipient Bank through several systems, can now be done through one platform, resulting in much faster end-to-end processing time and real-time monitoring.
Darwin Wibowo, Director of Wholesale Banking PermataBank, said that successful transactions with Chandra Asri used technology blockchain is an achievement and a game changer for Indonesia's trade finance process.
"This is in line with our aim to increase the size of the company through collaboration with Bangkok Bank and improve the business model through digitalization that benefits client demand," he said in an official statement released Friday (19/11). 
According to Andre Khor, Director Finance Chandra Asri, PermataBank and Bangkok Bank will pioneer the first cross-border LC blockchain transaction from Indonesia using Contour, a unique fintech platform. This is an important step towards radically simplifying and reimagining traditional trade finance procedures.
“This initial blockchain transaction is the latest technology in Chandra Asri's Digital Transformation Program. As a significant industrial player, we are pleased to pursue innovations that will accelerate industrialization and integration, thereby driving economic development”' he said.
Permata Bank Issues Payment Documents to Chandra Asri Using Blockchain Technology
Chandra Asri is the largest integrated petrochemical company in Indonesia and runs the only naphtha cracker in Indonesia, which produces olefins (ethylene and propylene), pyrgas and mixed C4, polyolefins (ethylene and propylene), styrene monomer, butadiene, and Methyl Tert-butyl Ether (MTBE) & Butene-1.
Chandra Asri can cut processing time by automating the issuance of letters of credit using Blockchain technology, in line with the company's aim to incorporate new technologies and undertake digital transformation to maintain its world-class standards.
PermataBank is the first bank in Indonesia to effectively carry out trade finance transactions using blockchain technology. PermataBank developed this technology in collaboration with Contour, a blockchain-based startup that serves more than 80 banks and businesses in 17 countries in Asia, the Middle East and Europe.
According to Abdy D. Salimin, Director of Technology and Operations at PermataBank, PermataBank continues to invest in appropriate technological capabilities to solve customer problems.
The use of blockchain technology in trade finance together with Contour demonstrates our continued dedication to providing the best banking experience that lives up to our brand promise of being easy, fast and reliable.
