Jakarta, February 16th, 2022 – PT Bank Central Asia Tbk (BCA), as a bank trusted by Bank Indonesia to provide the Local Currency Settlement (LCS) framework, remains committed to supporting the government's banking initiatives and pushing collaborations between financial service providers within the scope of the global trade.
In a commitment to supporting global transactions, BCA took part in “G20 Side Event: Managing Risk of the Exit Policy Dynamic Through More Diversified Currency to Support Global Trade and Investment," which was commenced on Wednesday (Feb 16th) at the Jakarta Convention Center. Several government officials were present, including Indonesia’s Finance Minister Sri Mulyani Indrawati, Bank Indonesia’s Governor Perry Warjiyo, People's Bank of China’s Governor Yi Gang, Bank for International Settlements (BIS) for Asia and the Pacific Chief Representative Siddharth Tiwari, BCA’s President Director Jahja Setiaatmadja, Bank Mandiri’s President Director Darmawan Junaidi, Indonesian Economist M. Chatib Basri, and Indonesian Employers Association’s (APINDO) Chairman Hariyadi B. Sukamdani.
"BCA is supporting the G20 Indonesia 2022 and committed to contributing through various aspects. The forum showcases the efforts of Indonesia and partnered countries to support the country's economic recovery through synergizing and harmonizing regulations, especially in the foreign exchange market, to push trades and investments in G20 countries. This is expected to raise G20 countries' awareness of the LCS framework benefits for driving regional economies, ultimately supporting the global economy. BCA, part of the national banking industry, wishes to help the central bank promote an efficient and competitive Local Currency Settlement (LCS)," said BCA’s President Director Jahja Setiaatmadja.
Local Currency Settlement (LCS) is the settlement of bilateral transactions between two countries using their respective currency. The LCS framework enables transactions in Rupiah, Baht, Ringgit, Yen, and Yuan and is expected to mitigate dependence on United States Dollar (USD) when making transactions for goods and services, investments, and forex transfers for individual needs.
The LCS implementation has benefited many customers, allowing direct quotations between Indonesia and partnered countries and faster settlements because they are within the Asian timezone. Additionally, customers will enjoy a competitive exchange rate and low transaction fee. Other benefits include more relaxed transaction requirements. For example, in an agreement between Indonesia, Malaysia, and Thailand, a bilateral transaction does not require an underlying document if it is less than USD200,000 equivalent in value. Meanwhile, in an agreement between Indonesia and Japan, a bilateral transaction does not require an underlying document if it is less than USD500,000 equivalent in value.
BCA continues to see an increase in bilateral transactions via the LCS framework. In 2021, the bank recorded a 40% increase in bilateral transaction value and volume. The bank was also honored to receive the Best Supporting Bank Award for the 2021 Forex Market Development from Bank Indonesia, thanks to its lucrative growth. Besides enabling the LCS framework, BCA has been in talks with the Thai and Malaysian financial authorities to enable a cross-border QR code payment.
"In the future, BCA will continue to support international banking business, especially in LCS. We are also exploring partnership opportunities to enable LCS with Taiwan, Korea, and India. We hope under G20 Indonesia 2022, we can contribute to revitalizing the Indonesian and global economy amidst the ongoing pandemic," said Jahja.
BCA Supports G20Indonesia 2020 – BCA’s President Director Jahja Setiaatmadja doing a presentation at “G20 Side Event: 'Managing Risk of the Exit Policy Dynamic Through More Diversified Currency to Support Global Trade and Investment” at the Jakarta Convention Center, Wednesday (Feb 16th). BCA supports G20 Indonesia 2022 and is committed to contributing through various aspects.
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About PT Bank Central Asia Tbk (as of December 31st, 2021)
BCA is one of the leading banks in Indonesia and focuses on providing banking, loan services, and financial solutions for the corporate, commercial, SME, and consumer segments. By the end of December 2021, BCA had served more than 29 million customer accounts and facilitated 48 million daily transactions. The bank operates 1,242 branch offices, 18,034 ATMs, internet and mobile banking services, and its 24/7 Halo BCA contact center. BCA is supported by subsidiaries offering vehicle financing, sharia banking, securities, general and life insurance, digital banking, remittance, and venture capital. BCA is committed to building a long-term relationship with customers, prioritizing common interests, and bringing a positive impact for the community. With more than 25,000 employees, BCA's aims to become the community's first choice and act as an important pillar for the Indonesian economy.
For more information, please contact :
PT BANK CENTRAL ASIA TBK
Corporate Secretary & Communication
Public Relations
Address : Jl. MH Thamrin No. 1
Menara BCA Grand Indonesia 20th Floor
Jakarta Pusat 10310
Phone : (021) 2358-8000
Fax : (021) 2358-8339
E-mail : corcom_bca@bca.co.id
