Indonesia has delayed a new trade rule covering payment for exports by up to six months because of strong opposition from exporters, Trade Minister Mari Pangestu said on Thursday. However the postponement for tin is just a few weeks. The regulation would require exporters of key commodities to use letters of credit for export payments and was originally due to come into force today.
Pangestu told Reuters that implementation has been postponed from 5 March to 1 April for tin and crude palm oil, and to 1 September for rubber, cocoa and coffee. The trade ministry also amended the rule, saying that letters of credit were only needed for shipments worth more than US$1 million. “The delay is to allow more time for preparation,” she told reporters, following a meeting with industry associations. Earlier reports had indicated that the new rules might be delayed until 2010.
