Editorial

UOB Indonesia and PT Total Bangun Persada TBK (TOTAL) recognised for implementing an advanced working capital solution as they win Best Supplier Relationship Management in Indonesia at The Asian Banker – Bankers Choice Awards 2019

By The Asian Banker

  • TOTAL was looking to advance financing at competitive rates to its vendors/subcontractors
  • UOB implemented an off-balance sheet, supplier financing solution
  • TOTAL could provide better financing which results in improved vendor/subcontractor relationships

Bangkok, May 30th 2019 — UOB Indonesia and PT Total Bangun Persada TBK (TOTAL) received the award for Best Supplier Relationship Management in Indonesia at The Asian Banker–Bankers Choice Awards 2019. The awards ceremony was held in conjunction with the prestigious The Future of Finance Summit 2019, the foremost annual meeting for decision makers in the financial services industry in the Asia Pacific region, held at Shangri-La Hotel, Bangkok, Thailand on May 30th 2019.



In the picture: David Gyori and Richard Hartung; International Resource Directors, Foo Boon Ping, Managing Editor; The Asian Banker with Ir. Tina Lukito; General Manager; PT Total Bangun Persada Tbk and Mr. Defi Xu; Cash Sales Head; Corporate & FI; UOB Indonesia

TOTAL was looking to advance financing at competitive rates to its vendors/subcontractors

TOTAL, one of Indonesia’s top private construction companies desired to help its vendors/sub-contractors by providing advance payment at a competitive financing rate, but without impacting its own financial ratios. Prior to the implementation of the solution, TOTAL provided advance payment to its vendors/sub-contractors using their own internal cash flow. TOTAL was additionally looking to make faster payments to their vendors so as to maintain continuity and timely service from their vendors, without compromising their own cash flow or financial ratios

UOB implemented an off-balance sheet, supplier financing solution

United Overseas Bank Indonesia provided an off-balance sheet supplier financing solution by implementing a ‘without recourse supplier financing against bills of exchange’ drawn on TOTAL, shifting their vendor/sub-contractor’s credit risk to TOTAL. Through the solution, UOB Indonesia’s purchase of bills of exchange is reflected as trade payables in TOTAL’s books instead of bank debt/liabilities, thus achieving their goal.

TOTAL could provide better financing which results in improved vendor/subcontractor relationships

This solution benefitted TOTAL’s recommended vendors/subcontractors as they are able to leverage TOTAL’s risk profile to obtain competitive financing rates. This in turn drove better support for TOTAL’s new and upcoming projects. With the implemented solution, TOTAL also improved its payment tenor to their vendors/sub-contractors from 30-45 days to 7 days. This has resulted in better eelationships with their vendors/sub-contractors and TOTAL is in a better position to negotiate future payment terms and greater support for potential contracts

The Bankers’ Choice Awards 2019, refereed by prominent global bankers, IT consultants and academics, is the most prestigious of its kind in Asia Pacific, which recognise corporations that have strong financials and demonstrate the ability to use the financial supply chain to add value to their partners in the upstream and downstream activities of their businesses. Recipients of these awards are honoured in a gala event that recognises their efforts in bringing superior products and services to their customers. A stringent and comprehensive evaluation process determines the awardees. For specific details relating to description of the awards, evaluation criteria and process, kindly visit http://www.asianbankerawards.com/bankers-choice/index.php.

About The Asian Banker

The Asian Banker Transaction Awards Programme, refereed by prominent global bankers, IT consultants and academics, is the most prestigious of its kind in Asia Pacific. Recipients of these awards are honoured in a gala event that recognises their efforts in bringing superior products and services to their customers. A stringent and comprehensive evaluation process determines the awardees. For specific details relating to description of the awards, evaluation criteria and process, kindly visit http://www.asianbankerawards.com/transactionawards/index.php.

Mr. Alfred Labicassi
The Asian Banker
Email: alabicassi@theasianbanker.com



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