IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Apr 2015 | Removal date: open ended
Still in force

Trade payment measure

 On 5 January 2015, the Indonesian Ministry of Trade announced regulation 04/M-DAG/PER/1/2015 requiring the exporters of certain products to use letters of credit as a mandatory payment method. These letters of credit have to be issued by a domestic bank.
A similar regulation was introduced back in 2009 for exports over 1 million USD; however, those provisions were later repealed (cf. Related Measures).
The regulation came into force on 1 April 2015.
Due to the unavailability of trade volumes for 2014 in the UN COMTRADE database, the list of affected trading partners is based on the 2013 data.
Update:
On 31 August 2015, the Ministry revised in regulation 67/M-DAG/PER/8/2015 the list of tariff lines requiring a letter of credit as a mandatory payment method. In the new list, steel products classified under lines 3810, 8001, 8003, 8007 and 8311, as well as oil and gas products classified under 2710, 2711 and 2713 were left out. These products no longer require a domestically issued letter of credit.
The amendment came into force on the day of its announcement.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

110 Coal & peat
2701 Coal; briquettes, ovoids and similar solid fuels manufactured from coal.
270111 Anthracite
270112 Bituminous coal
270119 Other coal
120 Crude petroleum & natural gas
2709 Petroleum oils and oils obtained from bituminous minerals, crude.
270900 Petroleum oils and oils obtained from bituminous minerals, crude.
141 Iron ores & concentrates, other than roasted iron pyrites
2601 Iron ores and concentrates, including roasted iron pyrites.
260111 Nonagglomerated
260112 Agglomerated
142 Non-ferrous metal ores & concentrates
2602 Manganese ores and concentrates, including ferruginous manganese ores and concentrates with a manganese content of 20 % or more, calculated on the dry weight.
260200 Manganese ores and concentrates, including ferruginous manganese ores and concentrates with a manganese content of 20 % or more, calculated on the dry weight.
2603 Copper ores and concentrates.
260300 Copper ores and concentrates.
2614 Titanium ores and concentrates.
261400 Titanium ores and concentrates.
334 Petroleum gases & other gaseous hydrocarbons, except natural gas
2711 Petroleum gases and other gaseous hydrocarbons.
271112 Propane
271113 Butanes
271114 Ethylene, propylene, butylene and butadiene
271119 Other
335 Petroleum jelly, coke or bitumen; paraffin wax & similar products
2713 Petroleum coke, petroleum bitumen and other residues of petroleum oils or of oils obtained from bituminous minerals.
271311 Not calcined
271312 Calcined
271320 Petroleum bitumen
342 Basic inorganic chemicals n.e.c.
2818 Artificial corundum, whether or not chemically defined; aluminium oxide; aluminium hydroxide.
281830 Aluminium hydroxide
2825 Hydrazine and hydroxylamine and their inorganic salts; other inorganic bases; other metal oxides, hydroxides and peroxides.
282510 Hydrazine and hydroxylamine and their inorganic salts
282540 Nickel oxides and hydroxides
282550 Copper oxides and hydroxides
282560 Germanium oxides and zirconium dioxide
282580 Antimony oxides
282590 Other
2830 Sulphides; polysulphides, whether or not chemically defined.
283010 Sodium sulphides
354 Chemical products n.e.c.
3810 Pickling preparations for metal surfaces; fluxes and other auxiliary preparations for soldering, brazing or welding; soldering, brazing or welding powders and pastes consisting of metal and other materials; preparations of a kind used as cores or coatings
381010 Pickling preparations for metal surfaces; soldering, brazing or welding powders and pastes consisting of metal and other materials
381090 Other
379 Other non-metallic mineral products n.e.c.
2818 Artificial corundum, whether or not chemically defined; aluminium oxide; aluminium hydroxide.
281810 Artificial corundum, whether or not chemically defined
411 Basic iron & steel
7201 Pig iron and spiegeleisen in pigs, blocks or other primary forms.
720110 Nonalloy pig iron containing by weight 0.5 % or less of phosphorus
720150 Alloy pig iron; spiegeleisen
7202 Ferroalloys.
720211 Containing by weight more than 2 % of carbon
720219 Other
720221 Containing by weight more than 55 % of silicon
720229 Other
720230 Ferrosilicomanganese
720270 Ferromolybdenum
720292 Ferrovanadium
720293 Ferroniobium
720299 Other
413 Basic precious metals & metals clad with precious metals
7106 Silver (including silver plated with gold or platinum), unwrought or in semimanufactured forms, or in powder form.
710691 Unwrought
710692 Semimanufactured
7108 Gold (including gold plated with platinum) unwrought or in semimanufactured forms, or in powder form.
710812 Other unwrought forms
710813 Other semimanufactured forms
414 Copper, nickel, aluminium, alumina, lead, zinc & tin, unwrought
2818 Artificial corundum, whether or not chemically defined; aluminium oxide; aluminium hydroxide.
281820 Aluminium oxide, other than artificial corundum
7403 Refined copper and copper alloys, unwrought.
740311 Cathodes and sections of cathodes
740319 Other
740321 Copperzinc base alloys (brass)
740322 Coppertin base alloys (bronze)
740329 Other copper alloys (other than master alloys of heading 74.05)
7601 Unwrought aluminium.
760110 Aluminium, not alloyed
760120 Aluminium alloys
8001 Unwrought tin.
800120 Tin alloys
415 Unfinished products of copper, nickel, aluminium, lead, zinc or tin
7406 Copper powders and flakes.
740610 Powders of nonlamellar structure
740620 Powders of lamellar structure; flakes
8003 Tin bars, rods, profiles and wire.
800300 Tin bars, rods, profiles and wire.
429 Other fabricated metal products
8007 Other articles of tin.
800700 Other articles of tin.
8311 Wire, rods, tubes, plates, electrodes and similar products, of base metal or of metal carbides, coated or cored with flux material, of a kind used for soldering, brazing, welding or deposition of metal or of metal carbides; wire and rods, of agglomerated
831110 Coated electrodes of base metal, for electric arcwelding
831120 Cored wire of base metal, for electric arcwelding
831130 Coated rods and cored wire, of base metal, for soldering, brazing or welding by flame
831190 Other

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