Trade Ministry required four strategic export products to use letters of credit (L/C) on export payment. The four export product are Crude Palm Oil (CPO), and Crude Palm Kernel Oil (CPKO), Mineral, Coal, as well as Oil and Gas. Such policy will become effective in 1 April 2015.
"By demanding the application of L/C in exports, we want to increase export earnings and at the same time get accurate records, particularly from sales of natural resources" said Trade Minister Rachmat Gobel, in a press conference at Trade Ministry, Jakarta, on Wednesday (14/1/2015).
The event in the framework of socialization the Regulation of Trade Minister No. 04/M-DAG/PER/1/2015 concerning mandatory L/C on export of certain commodities. The event was attended by Bank Indonesia Governor, Agus DW Martowardojo and Director of Revenue and Regulation of Custom and Excise and Tax in Directorate General Custom Excise and Tax, Ministry of Finance, Susiwijono.
Rachmat said, selection of the certain commodities has been through comprehensive consideration based on several criteria. Such criteria are the commodities have become first class comparative and have important role in Indonesia's economy. Such commodities also become Indonesia biggest export result. Agus said that the regulation of trade ministry is in line with Law of Foreign Exchange Trading. Such regulation has no correlative with limitation and controlling of trading.
Source: Kompas, 15 January 2015