PermataBank and Chandra Asri Completed the First Blockchain Technology Trade Finance Transaction in Indonesia

The trade financing transaction with blockchain technology between Indonesia and Thailand is supported by the synergy between PermataBank and Bangkok Bank PLC, Thailand as the controlling shareholder.

Jakarta – After launching trade finance transaction using blockchain technology, PermataBank completed another milestone by successfully executing its first cross-border transaction between Indonesia and Thailand. PermataBank partners with Bangkok Bank PLC (Thailand) supported Letters of Credit issuance of PT Chandra Asri Petrochemical Tbk in Indonesia to their supplier. This 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.

Darwin Wibowo, Director of Wholesale Banking at PermataBank, said, “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 digitizing that benefits customers' needs. We are grateful for the trust given by Chandra Asri to this new technology that we have implemented.”

Andre Khor, Chief Financial Officer of Chandra Asri, said “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 Program. As a key industry player we are pleased to serve as the path finder to promote industrialization and integration to boost economic growth.”

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) & Butene-1. With blockchain technology, Chandra Asri can reduce processing time and further digitalize 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.

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

Abdy D. Salimin, Director of Technology and Operations at PermataBank added, “As one of Indonesia’s leading banks in digital innovation, PermataBank continue investing on the right technology capabilities in solving customer pain point. 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”.

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

Blockchain technology applied in trade finance transactions will optimize global trade that is easier, more efficient, and safer for cross-border and domestic letters of credit. This technology will help corporate customers maximize resources and improve cash flow.