Indonesian exporters of key commodities have objected to a government plan making it mandatory to use letters of credit for export payments, a deputy to the chief economic minister said on Monday. Indonesia wants exporters of coffee, crude palm oil, cocoa, rubber, and mineral products including refined tin, to use letters of credit, with effect from 5 March. "Almost all industry players said they are objecting to the L/C rule," Bayu Krisnamurthi told reporters after a meeting between government officials and industry associations.
To comply with the rule, exporters can only ship out commodities if they can show the number of the L/C for payment of such shipment, proving that they have been paid in full. However the meeting did not result in a decision on whether to delay or cancel the rule, according to Reuters.
