JAKARTA, Nov. 11 (Xinhua) -- The Hong Kong Shanghai Banking Corporation (HSBC) launched trade transaction service with Chinese currency Renminbi here, makes Indonesia the sixth country in ASEAN countries enjoying the service, a senior HSBC official said here on Wednesday.

    China will continuously play an important role as the main trade partner for Indonesian businessmen. "The Chinese government's policy to allow Renminbi as trade payment currency would improvethe trade between the two countries," Head of Trade and Supply Chain HSBC Indonesia Vincent C. Sugianto said.

    Citing the results of its Trade Confidence Index survey for the fourth quarter this year, he said the Indonesian businessmen wish to improve their businesses with their Chinese counterparts.

    The commencement of HSBC's trade payment with Chinese Renminbi currency service in Indonesia was marked with a transaction conducted by one of HSBC Indonesia's customers PT Duta Permata Murni with its business counterpart in Shanghai, China recently.

    The other ASEAN (Association of Southeast Asian Nations) countries served with HSBC's Renminbi Trade Settlement service are Malaysia, Thailand, Singapore, Vietnam and Brunei Darussalam.

    According to Vincent, the Renminbi trade settlement service can only be conducted with Chinese firms authorized to make transactions with their counterparts in ASEAN countries. Those appointed Chinese firms were listed in Chinese government's Mainland Designated Enterprises (MDE) scheme.

    According to Vincent, direct transaction using Renminbi with Chinese firms would reduce transaction cost as it would avert the exchange currency risk.

    Vincent said that HSBC provides various transactions with Renminbi currency that comprised of trade financing, currency exchange from Indonesian Rupiah to Renminbi and likewise and export/import financing with countries included in MDE.