DBS Indonesia strengthened its trade finance franchise in 2024 by launching solutions that solve immediate pain points in the market, while also scaling cross-border capacity.
Following the liquidity strain in the wake of Bank Indonesia’s 2023 rule that required natural resource exporters to retain 30% of proceeds domestically for at least three months, DBS launched a fully cash-backed sales invoice financing structure that lets clients pledge trapped proceeds in fixed deposits and draw immediate IDR funding.
Beyond product design, DBS leaned on its regional network to convert Indonesian flows into wider corridor business. Indonesian clients gained faster, cheaper access to cross-border receivables finance and intra-Asia trades.
In addition, DBS’s letter of credit market share in the Middle East rose off the back of Indonesia-originated transactions – evidence that the franchise is functioning as a gateway for both inbound and outbound supply-chain finance.
DBS leaned on its regional network to convert Indonesian flows into wider corridor business
The bank’s execution ability was on full display when it supported a large Chinese telecommunications client needing to finalise export document collection. DBS synchronised Indonesia and Hong Kong teams via a central communication tracker, accelerating approvals and closing ahead of schedule in roughly six weeks, providing transparency and preserving continuity between the client’s headquarters and local subsidiary.
In industrials, DBS structured letter of credit and acceptance facilities for a large Indonesian manufacturer to source high-value machinery from Singapore without full cash payment upfront. The solution extended supplier terms by 90 days, shifted exposure from cash to non-cash lending, reduced financing costs and strengthened supplier relationships with risk-mitigated structures.
