ANNOUNCEMENT 05 Jan 2015In January 2015, the government of Indonesia announced a change in the settlement of trade invoices.
NUMBER OF INTERVENTIONS
Ministry of Trade regulation 04/M-DAG/PER/1/2015 (in Bahasa Indonesia):
Implementing regulation 26/M-DAG/PER/3/2015 (in Bahasa Indonesia):
Ministry of Trade regulation 67/M-DAG/PER/8/2015 (in Bahasa Indonesia):
News article (in English) on the partial repeal of the regulation:
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A similar regulation was introduced back in 2009 for exports over 1 million USD; however, those provisions were later repealed (cf.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.
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.