Thailand's Bangkok Bank and Indonesia's Permata Bank have collaborated to complete a blockchain letter of credit (L/C) transaction in the Thai-Indonesian chemical market.

The digitalisedL/C transaction also aligns with the concept of green business for sustainable growth according to Bangkok Bank.

Digital benefits

The deal involved the sale of plastic resins supplied by Thai Polyethylene (TPE) to chemical manufacturer and distributor, Lautan Luas, one of TPE's largest clients in Indonesia

With all documents submitted electronically, the transaction yielded the familiar blockchain benefits of reduced paperwork, fewer errors and speedier delivery.

Green credentials

Reduced use of paper and the elimination of container yard charges for keeping goods in port during paper-based L/C processing also helps reduce carbon emissions according to Bangkok Bank's executive vice president, Pip at Assamongkol.

"The digital end-to-end process reduces the use of paper and transportation, which are carbon-emitting activitiesTherefore, this service is also helping to promote the concept of green business," he concludes.

In 2019, Bangkok Bank officially became the controlling shareholder of PermataBank.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.