With six overseas branches and 2,340 BNI branches spread across Indonesia, BNI is ready to serve customers looking for LCS transactionsJakarta (ANTARA) - State-run PT Bank Negara Indonesia (BNI) actively supports Bank Indonesia (BI) in introducing the Local Currency Settlement (LCS) transaction scheme by offering several amenities.
"With six overseas branches and 2,340 BNI branches spread across Indonesia, BNI is ready to serve customers looking for LCS transactions," BNI's Senior Executive Vice President Treasury, Ita Tetralastwati, noted in an official statement received here on Thursday.
Tetralastwati remarked that the BNI offers services encompassing bundling product related to exports, imports, and remittances that can be enjoyed while using the LCS scheme.
She affirmed BNI's commitment to participating in maintaining the rupiah's stability by extending support to disseminating information on BI's LCS transaction schemes.
Tetralastwati noted that the goal was for more widespread use of the LCS product among business players, including entrepreneurs, who are BNI customers.
According to BNI, LCS schemes will be increasingly required for the growth of international trade.
"BNI offers the best solution for customer requirements in forex (foreign exchange) by accommodating treasury solutions products and competitive exchange rates to support the business development of BNI customers from time to time," she expounded.
LCS is the settlement of bilateral transactions between Indonesia and LCS partner countries conducted in the currencies of each country, she added.
According to Tetralastwati, the program is expected to increase the use of local currencies and reduce the US dollar dominance on international trade.
Through the use of LCS, businesses will benefit, as it will reduce the risk of exchange rate and lower dependence on a single currency while conducting international trade.
In addition, LCS' other benefits entail cost efficiency through the direct quotation mechanism that allows businesses to not have to convert to the US dollar.
The LCS CNY (Chinese Yuan) was recently launched by BI through PADPP Board of Governors Member Regulation No. 23 /16 / PADG/ 2021, dated September 6, 2021.
Before the launch, the LCS scheme has already accommodated transactions between Indonesian Rupiah, Malaysia Ringgit, Thai Baht, and Japanese Yen.
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Translator: Kuntum R, Kenzu T
Editor: Sri Haryati
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