Seminar on Guarantee Bank and SBLC Referring to ICC Rules &Local Regulation, October 27, 2015

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Currently the development of infrastructure is one of the priorities of the Indonesian government to promote national economic growth. The infrastructure project is supported by funding both nationally and abroad. In the case of involving contractors and suppliers from home and abroad, the use of Guarantee/Guarantee Bank and Standby Letter of Credit (SBLC) nationally and in international rules has  become increasingly important.

Guarantee Bank is used very widely, not only as an instrument of guarantee but in certain circumstances it can also take the place of Letter of Credit (L /C) and the Domestic Derivative Letter of Credit (SKBDN) so as to provide certainty for all parties. Therefore, understanding various aspects of the Bank Guarantee becomes paramount for all parties, not just those associated with the projects rooted from APBN/APBD but also for those doing business with their counterparts abroad. 

At the international level, there has been regulatory framework for the practice of Guarantee Bank drawn up by the International Chamber of Commerce (ICC) named the Uniform Rules for Demand Guarantee (URDG) 758. URDG 758 quickly becomes the world reference for International Guarantee Bank for its balanced approach to issues and other rules which were not covered in the previous version, URDG 458. In the latest version  URDG 758, there are types of Guarantee such as Demand Guarantee Bid Bond Guarantee, Performance Bond, Advance Payment Bond, Commercial Bond, and others which need to be understood by users internationally.

Whereas, the international rules for the Standby Letter of Credit (SBLC) is contained in the International Standby Practices (ISP) 98. ISP 98 fills the need for 'international practice' for SBLC, which previously was covered only in the Uniform Customs and Practice for Documentary Credits (UCP). The presence of ISP 98 reduces the cost and time of the document preparating, reducing problems in handling and avoiding countless disputes and unnecessary litigation resulting from the absence of internationally agreed rules for the practice of SBLC.

ICC Indonesia as a representative of ICC in Paris supports the government in accelerating the development of infrastructure in the country to boost the national economy by holding a "National Seminar on Bank Guarantee and SBLC Referring to the ICC Rules and Local Regulations", October 27, 2015 at Hotel Le Meridien Jakarta. Inviting renowned speakers such as Dr. Ramlan Ginting (Practitioner, Legal Trade Central Bank of Indonesia) and Budiutomo Kurniadi (Practitioner, ICC Indonesia), the seminar sought to provide insights for businesses including banks and corporations, smoothing their business transactions and increasing competitiveness.