ANNOUNCED AS TEMPORARYNo
Export-related non-tariff measure, nes
On 5 March 2009, the Government of Indonesia imposed a regulation concerning the use of domestically issued letters of credit. The following three categories of goods are covered by this regulation: (i) Crude Palm Oil (CPO), (ii) Mined Goods (included are steel ores, coal, nickel, copper, aluminum); and (iii) Cocoa, Coffee, and Rubber. If the export value of such goods exceeds US$ 1,000,000, payment must be made by opening a Letter of Credit in a Domestic Foreign Exchange Bank. If the value of such exports is lower than US$ 1,000,000, another method of payment may be employed, with the proviso that a Domestic Foreign Exchange Bank be used. Such export proceeds, either for the payment by using a Letter of Credit or any other method, must be channeled through or received by a Domestic Foreign Exchange Bank (a foreign exchange bank operating under and in compliance with the prevailing laws and regulations of the Republic of Indonesia).
This regulation was revoked by regulation 27/M-DAG/PER/6/2010 on 24 June 2010.
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