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Ministry of Trade Obliged the L/C in Palm Oil Trade



Ministry of Trade Obliged the L/C in Palm Oil Trade

InfoSAWIT, JAKARTA  - Ministry of Trade has published the Regulation of Minister of Trade No. 94 / 2018 about the Regulation about Letter of Credit(L/C) to Particular Export Goods. The regulation was announced on 7 September 2018 and would run on 7 October 2018.

"The publication of Regulation of Minister of Trade No. 94 / 2018 is one way to strengthen the exchange reserves when the economic global is not good. There are four sectors to use L/C, they are, mineral, coal, palm oil, and natural gas,” Minister of Trade, Enggartiasto Lukita said in the official statement toInfoSAWIT, Monday (24/9/2018).

The policy about to strengthen the exchange reserves through L/C by publishing Regulation of Minister of Trade No. 94 / 2018 is the mandate of Government’s RegulationNo 29 / 2017, Chapter 4, article (3) about the Payment Method of the Goods and the Handover Method of the Goods in Export and Import. Minister of Trade has its authority to manage payment method of exported particular goods.

The regulation regulated some, they are, the obligation to certain exported goods with L/C, the obligation to use the domestic exchange banks or the export funding institution that the government has made, the obligation to make the L/C payment method in the Pemberitahuan Ekspor Barang (PEB), the obligation to tell the stamped documents, the obligation to make verification from the surveyor, and the obligation to tell the export realization which should be complete with the final price in L/C.

Besides, the regulation is also about to determine the fixed price, that is listed in the L/C,at least, it is the same with the world export price. If it is not, the price used would be determined by the government or the goal export country.

Minister of Trade together with Minister of Finance, Governor of Indonesian Bank, and other related ministries would monitor the payment of L/C and coordinated by Minister of Trade.

The regulation would also regulate the suspension of L/C. “For the contract that has been agreed before the Regulation of Minister of Trade is published, the contract could be suspended within the regulation, the Minister of Trade has agreed it,” Enggartiasto said. (T2)

 


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