Ministry of Trade issues Ministerial Regulation Trade Number 94 Year 2018 concerning the provisions on the use of letters of credit (L/C) for minerals, coal, palm oil and natural oil and gas imports. This regulation is promulgated on Sept. 7 and will apply on Oct. 7, 2018.
The decision has been made based on Presidential Decree Number 29 Year 2017, Article 4, paragraph (3) concerning Ways Payment of Goods and How to Deliver Goods in Export and Import Activities, where the ministry is given the authority to regulate the method of payment of certain goods exports.
The new regulation stipulated the main points of regulation, namely the obligation to pay for exports certain items with L/C, the obligation to use foreign exchange from the local banks or local institutions export financing established by the government, the obligation to include the method of payment of L/C on Goods Export Notification, the obligation to submit a stamped statement verification obligations by surveyors, as well as the obligation to submit export realization reports equipped with the final L/C price.
In addition, it is also regulated in relation to price determination, which is the price listed in the most L/C low equal to world export prices. If there is no, then the price used will be determined by the government or export destination country.