BUSINESS REVIEW
against almost all other currencies in the world, one such currency was the Rupiah, which weakened 10.3% against the USD. Responding to the Fed’s increased interest rate, Bank Indonesia took the front loaded, pre-emptive and proactive forward looking step of raising the BI-7 Day Reverse Repo Rate (BI7DRR) by 200bps throughout 2022.
Throughout 2022, Bank Indonesia increased the Rupiah Reserve Requirement (GWM) for Conventional Commercial Banks by 550bps to 9.0%. BCA’s liquidity conditions remained adequate with these changes. As of December 2022, overall investment funds managed by Treasury BCA amounted to Rp424.5 trillion. Treasury Investments represent 32.3% of BCA’s total assets.
Seeing the trend of rising interest rates, BCA Treasury prioritized placements that offer the best returns with calculated risks, such as Bank Indonesia instruments, government securities, and corporate securities bonds.
TREASURY BANKING SOLUTIONS
BCA Treasury collaborates with other work units and branches to provide attractive Treasury banking solutions for customers, including hedging solutions and investment alternatives. These solutions include FX Forward, FX Swap, Interest Rate Swap, Cross Currency Swap, Call Spread Option, Time Deposit Money Market, and Dual Currency Investment.
BCA Treasury offers hedging solutions based on risk- free reference rates, such as SOFR (Secured Overnight Financing Rate), following the discontinuation of the LIBOR interest rate. In addition, BCA Treasury has developed digital innovations in foreign exchange transactions and bond transactions for individual, corporate and financial institution customers.
BUSINESS REVIEW
Treasury and International Banking
BCA also offers custodial services for customers whose assets are administered in the form of stocks, government bonds, and corporate bonds, and mutual fund deposits, as well as fund management contracts in Rupiah and foreign currencies. In 2022, total assets administered by the BCA Custodian amounted to Rp265 trillion, with more than 202,000 securities accounts.
INTERNATIONAL BANKING
BCA provides various international banking services, such as cross border remittances, trade finance and other services for banks and financial institutions. BCA is committed to continuously improving International Banking products and services in line with global developments and customer needs.
TRADE FINANCE SERVICES
In line with positive national economic growth and increasing domestic trade in 2022, BCA managed to record more than 14% growth in Trade Finance transactions compared to the previous year.
BCA continues to innovate and develop Trade Finance business initiatives to provide added value for customers and provide convenient, trusted and reliable services.
Responding to the needs of the digital era, BCA has developed a Bank Guarantee (BG) Checking service, which helps recipients to verify Bank Guarantees issued by BCA.
REMITTANCE SERVICES
In 2022, BCA’s remittance volume transactions increased by more than 15% compared to 2021. In the midst of increasing public adoption of digital solutions, BCA continues to improve its e-channels to provide remittance services for individual and corporate customers.
To facilitate the growth of online foreign exchange transactions, BCA has launched a new feature, namely the “Business Document” which simplifies the verification process of verifying underlying documents for customers’
foreign currency purchases through KlikBCA Bisnis. The development of this digital solution e-channel contributed substantially to growth in remittance transaction volume of more than 50% compared to the previous year.
Regarding foreign currency payment services, BCA has carried out technology development initiatives to provide through services in the eBranch application, the web- based remittance application named RemittanceBCA, and also mobile banking. In addition, BCA supports government programs to maintain the stability of the Rupiah exchange rate through Local Currency Settlement (LCS) services. As one of the banks that has earned the trust of Bank Indonesia as an Appointed Cross Currency Dealer (ACCD), BCA can facilitate LCS transactions to Malaysia, Thailand, Japan and China.
FINANCIAL INSTITUTIONS GROUP
In order to provide excellent service to customers, BCA cooperates with various domestic and foreign financial institutions. BCA is taking steps to expand business cooperation with its partners in order to provide convenience for customers making transactions at the global level. Such steps include adding cross-border payment partners, accommodating counter guarantees or Standby LCs from and to other banks for guaranteeing customers’ business needs from customers, and financing business with bilateral loan and trade finance schemes.
The expansion of cooperation between BCA and other financial institutions is inseparable from advancements in technology and developments to in products and services to meet evolving customer needs. Application Programming Interface (API) technology helps BCA partners to accommodate various business schemes and adapt them to their needs. Business referrals are also carried out by BCA for correspondent bank customers to provide financing offers and general banking services.
In the 2022 UMKM Fest, BCA engaged various stakeholders to connect MSME players with overseas importers. BCA also actively collaborates with potential banks with proven potential to help increase achievinge more efficient national retail payment transactions through the BI-FAST feature.
FUTURE PLAN
BCA will continue to pursue various initiatives to develop Treasury and International Banking services to provide added value for customers and provide convenient, reliable and safe banking solutions.
Observing market developments and technological advancements, Treasury Banking will also continue to innovate by offering a wide variety of solutions and products to meet dynamic customer needs. Meanwhile, International Banking is committed to improving fund transfer services and offering a variety of solutions to suit current customer needs.