Indonesian government officials have spoken about new measures aimed at supporting tin prices and tightening payment terms for all metals and minerals.
Director for industrial and mining product export affairs of the Directorate General of External Trade Hartojo Agus Tjahjono told the official Antara news agency on Wednesday that Indonesia’s tin ingot exports in 2008 were recorded at 88,161.72 tons worth US$1.621 billion, but hoped that the value of exports could rise to $2 billion in 2009. He said that the Ministry of Mines and Mineral Resources would soon decide the national tin production quota. "There will be production restriction in order to keep price at a good level," Tjahjono said.
Meanwhile Metal Bulletin reported that Indonesia will only allow exports of its metal and minerals to buyers with letters of credit (LCs) from March 5 this year. The regulation is to protect exporters from payment defaults from buyers overseas, and to ensure continuity of trade financing for local companies, said trade minister Mari Elka Pangestu. PT Timah corporate secretary Abrun Abubakar told MB that the new measure would not have a significant impact on the company’s business and that it already has "a good picture of its customers’ solvency" even without LCs.
