Bangkok Bank Executive Vice President Pipat Assamongkol said, “International trade is crucial for a country’s economic growth. International trade transactions need multi-step processes and require a large amount of paper documents which is a major obstacle. To help resolve this problem, the Bank has developed blockchain technology innovation for L/C, a service that uses Distributed Ledger Technology (DLT) or Enterprise Blockchain Platform as an integral part of the work to provide full commercial services*.”
The Bank recently joined PermataBank to provide this innovation to both banks’ customers in the chemical industry. The Bank was successful in supporting Thai Polyethylene (TPE), a company under SCG Chemicals or SCGC exporting plastic resins from Thailand to Indonesia, to be able to submit a full electronic presentation for container ships. This helps reduce paper use, carbon emissions and container yard charges for temporarily keeping containers at the port. Therefore, trade partner in Indonesia receives goods faster, which increases business opportunities. Both trade partners satisfied and appreciated with good experience from the services.
The Bank joined PermataBank and TPE to provide a L/C through blockchain technology for exporting goods to Lautan Luas, one of TPE’s largest clients in Indonesia. Lautan Luas supplies chemical products to 2,000 industrial end-users throughout Indonesia and Asia Pacific. This service enables both trade partners to check changes in the L/C application anytime, enhancing transaction transparency, reducing risks for mistakes and enabling quick information tracking via digital channels, creating satisfaction for both trade partners and continuously plan for using the service.
Regarding the Bank’s success, Mr. Pipat added, “This underscores the strength of Bangkok Bank and PermataBank’s service network cooperation to support international trade services through the L/C on blockchain technology that can be adapted to support the various needs and nature of customers’ businesses, such as supporting multiple shipments and billing documents under the same L/C, etc.
“As a trusted partner, Bangkok Bank is proud to participate in financial development to help increase business efficiency, while increasing the speed of working processes amongst parties involved in trade transactions and reduced costs. The strong international network and cooperation with PermataBank has allowed us to deliver good service and experience to our customers in Thailand and their overseas partners. More importantly, the digital end-to-end process also reduces the use of paper and transportation, which are carbon-emitting activities. Therefore, this service is also helping to promote the concept of green business, which is another dimension of sustainable business that Bangkok Bank attaches importance to as well.”
Mr. Darwin Wibowo, Director of Wholesale Banking at PermataBank, said, “The implementation of blockchain technology in trade transactions is PermataBank’s…
