BCA - Standby LC

Standby L/C

A written guarantee issued by BCA that obligates BCA to pay the beneficiary if the guaranteed party defaults on its obligations. It is typically used to secure international transactions.

Types of SBLC/DG include:

Bid Bond
Guarantees the bidder’s obligations during the bidding process.
Performance Bond
Guarantees the performance of contractual obligations, including the completion of a project within the agreed timeframe.
Payment Bond
Guarantees payment in accordance with the terms of the contract.
Advance Payment Bond
Guarantees the repayment of an advance payment if the guaranteed party fails to fulfill its contractual obligations.
Maintenance Bond
Guarantees the fulfillment of maintenance obligations during the specified maintenance period.

Important Information

Requirements for Opening a Standby L/C at BCA

Have a reputable credit reputation
Have already become BCA Giran customer
Providing every required legal document
Have Standby L/C facility in BCA

Terms and Conditions for Individuals

Must have legal capacity
Must be an Indonesian citizen
Must not be declared bankrupt or be involved in bankruptcy proceedings

Terms and Conditions for Business Entities

Must be an Indonesian legal entity or business entity
Must comply with its Articles of Association and applicable laws and regulations
Must not be declared bankrupt or be involved in bankruptcy proceedings

Required Legal Documents

When applying for an SBLC/DG facility, the (prospective) borrower must submit the required legal documents, including:

Borrower Type	Required Documents
Individual	Copy of ID card
	Copy of spouse’s ID card^*
	Copy of Taxpayer Identification Number (NPWP)
	Copy of Family Card (Kartu Keluarga)
	Copy of marriage certificate^*
	Copy of divorce certificate or death certificate^*
	Copy of Property Division Agreement^*
Business Entity	Copies of identification documents of the management and shareholders
	Copy of Taxpayer Identification Number (NPWP)
	Copy of the Articles of Incorporation and all amendments thereto
	Copy of the Business Identification Number (NIB), Company Registration Certificate (TDP), or Trading Business License (SIUP)

* If applicable

The application process involves the following steps:
- The (prospective) borrower submits an application for an SBLC/DG facility at a BCA branch office. Once the facility is approved, the borrower signs a Credit Agreement (PK) and a collateral agreement.
- The (prospective) borrower submits the ownership documents for the collateral to BCA, depending on the type of collateral provided.
- The borrower submits an SBLC/DG issuance request to BCA. The request must be authorized by the borrower’s designated representative or an authorized party and include the following information: Name and address of the applicant, Name and SWIFT code of the receiving bank, Name of the SBLC/DG beneficiary, Currency and amount of the SBLC/DG, Expiry date and place of expiry, Terms and conditions for making a claim, Party responsible for paying foreign bank charges, whether the applicant or the beneficiary, Underlying contract documents.
- The borrower submits the Standby Letter of Credit/Demand Guarantee Service Application Form.
An SBLC/DG may have an expiry date that falls after the facility maturity date specified in the Credit Agreement (PK), provided that the issuance amount does not exceed the approved credit limit and the SBLC/DG is issued during the facility’s drawdown period.

(Prospective) borrowers may submit inquiries or complaints through the following channels:

Contact Us:

Halo BCA 1500888

Email: halobca@bca.co.id

WA: +628111500998

Website: www.bca.co.id

Social Media:

Facebook : GoodLife BCA

Instagram : @goodlifebca

Youtube : Solusi BCA

X (Twitter) : @BankBCA

Main Features, Benefits, and Risks of Standby LC/Demand Guarantee

Main Features of Standby LC (SBLC)/Demand Guarantee (DG)

The facility limit is determined based on the borrower’s needs and is subject to BCA’s approval.
The SBLC/DG facility has a term of one year from the date of the Credit Agreement and may be extended.
SBLC/DG facilities are available in the following types:
- SBLC/DG facility with a credit line: Allows the borrower to issue multiple SBLCs/DGs during the facility term, subject to the approved facility limit.
- Case-by-case SBLC/DG facility: Allows the borrower to issue only one SBLC/DG during the facility term.
BCA issues SBLCs/DGs in the following formats:
- BCA’s standard SBLC/DG formats.
- Non-standard SBLC/DG formats, which are subject to review by BCA’s Legal Department
Collateral for revolving SBLC/DG facilities may include land or buildings, time deposits, inventory, accounts receivable, security deposits, or other forms of collateral approved by BCA. For non-revolving SBLC/DG facilities issued under specific case-by-case conditions, the collateral must be in the form of cash collateral held in BCA deposit products.
Documents supporting the issuance of an SBLC/DG may include contracts, cooperation agreements, and other relevant documents.
An SBLC/DG ceases to be valid under any of the following conditions:
- The SBLC/DG has expired
- A claim under the SBLC/DG has been paid
- The SBLC/DG has been canceled
BCA may make payment under an SBLC/DG upon receiving a written claim from the Beneficiary’s bank, provided that the claim complies with the terms and conditions of the SBLC/DG.
A claim under an SBLC/DG must be accompanied by the documents specified in the SBLC/DG as requirements for making a claim.
SBLC/DG transactions are subject to the following rules and practices, as applicable: the Uniform Customs and Practice for Documentary Credits (UCP 600), the International Standby Practices (ISP98), or the Uniform Rules for Demand Guarantees (URDG 758), published by the International Chamber of Commerce (ICC), including any amendments, supplements, or successor versions that may become effective.

Benefits

Enhances the debtor’s credibility, whether as a bidder, a contractor, a project maintenance provider, or a party to a payment transaction
Extensive network, supported by a broad network of correspondent banks.
Competitive costs, reflected in superior and competitive service rates.

Risks

BCA will pay claims on SBLCs/DGs submitted by the beneficiary, provided the SBLC/DG claim conditions are met, regardless of whether the applicant defaults on their obligations or not.
If the applicant fails to fulfill their payment obligations as agreed, BCA reserves the right to take action in accordance with applicable credit terms.

Additional Information

SBLC/DG disbursement may be made after BCA receives the claim and underlying documents in accordance with the terms and conditions of the SBLC/DG, which are submitted through the beneficiary’s bank.
If the customer, as the beneficiary of the SBLC/DG, submits a claim for the received SBLC/DG, the customer must complete the SBLC/DG Service Request Form.
Each SBLC/DG must have a maturity date and becomes void if BCA does not receive a claim in accordance with the terms and conditions of the SBLC/DG by that maturity date
BCA reserves the right to modify the benefits, fees, risks, and terms and conditions of this product and/or service, which BCA will notify in any form and through any means in accordance with applicable regulations. Such notification will be provided no later than 30 business days prior to the effective date of the changes
If the Debtor wishes to cancel or close an SBLC/DG, written approval is required from BCA (the Issuing Bank), the Confirming Bank (if any), and the beneficiary
In the event of the closure of an SBLC/DG facility, the debtor must submit a written request for facility closure to a BCA branch office. If there is an outstanding balance at the time of closure, the facility will be reduced to the amount of the outstanding balance. Collateral may be returned once all of the debtor’s obligations under the issued SBLC/DG have been fully settled

Fees

Prospective borrowers will be charged fees based on BCA’s calculations and analysis, including:

A credit facility administration fee, as specified in the credit decision. If the credit limit or other terms are changed, the administration fee will be charged based on the revised terms.
Notary fees for notarizing the Credit Agreement.
Collateral registration fees for notarized registration documents.
Insurance premiums for non-cash collateral.
Appraisal fees for non-cash collateral.
Penalties for overdue payments.
Fees incurred in connection with the issuance and use of SBLCs/DGs, including issuance commissions and administration fees (including fees for amendments to SBLCs/DGs), cancellation fees, claim handling fees, and Telex/SWIFT fees for electronic transmission. Note:
Borrowers with SBLC/DG facilities will be charged commissions and administration fees under the following conditions:
- Administration fees and commissions are charged upon issuance of the SBLC/DG.
- SBLC/DG commissions are calculated from the issuance date to the expiry date.
- For SBLCs/DGs with an effective date later than the issuance date, commissions are still calculated from the issuance date to the expiry date.
Fees that may arise from the processing of credit-related activities include:
- Fees for the return and release of collateral: IDR 500,000 per collateral document.
- Fees for storing collateral documents belonging to borrowers who have fully repaid their loans: IDR 500,000 per month per borrower.

Note

This fee information is general in nature and may be subject to change based on the credit decision or other applicable provisions. Any additional fees arising from the processing of credit applications or other credit-related activities will be charged and communicated through appropriate channels in accordance with applicable law

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