REGULATION OF THE MINISTER OF TRADE
NUMBER 01/M-DAG/PER/1/2009

CONCERNING
THE EXPORT OF GOODS REQUIRED TO USE LETTERS OF CREDIT

BY GRACE OF THE ALMIGHTY GOD,
THE MINISTER OF TRADE OF THE REPUBLIC OF INDONESIA,

Considering:

• a. that to ensure well administered business practices, support natural resource conservation efforts in favour of the quality of the global environment and smoothen the receipt of foreign exchange earnings from exports, it is necessary to require the export of goods to use Letters of Credit (L/Cs);
• b. that based on the consideration as intended in a, it is necessary to stipulate a Regulation of the Minister of Trade;

In view of:

• 1. Trade Ordinance of 1934 (Statute Book No. 86/1938);
• 2. Law No. 7/1994 concerning the Ratification of Agreement Establishing The World Trade Organization (Statute Book No. 57/1994, Supplement to Statute Book No. 3564);
• 3. Law No. 10/1995 concerning Customs (Statute Book No. 75/1995, Supplement to Statute Book No. 3612) as amended by Law No. 17/2006 (Statute Book No. 93/2008, Supplement to Statute Book No. 4661);
• 4. Law No. 10/2004 concerning the Enactment of Laws and Regulations (Statute Book No. 53/2004, Supplement to Statute Book No. 4389);
• 5. Government Regulation No. 1/1982 concerning the Realization of Exports and Imports and the Traffic of Foreign Exchange (Statute Book No. 1/1982, Supplement to Statute Book No.3210) as amended by Government Regulation No. 24/1985 (Statute Book No. 33/1985, Supplement to Statute Book No. 3291);
• 6. Presidential Decree No. 260/1967 concerning the Affirmation of Task and Responsibility of the Minister of Trade in the Field of Foreign Trade;
• 7. Presidential Decree No. 187/M of 2004 concerning the Formation of the United Indonesia Cabinet as amended several times, the latest by Presidential Decree No. 1/2005;
• 8. Presidential Regulation No. 9/2005 concerning the Position, Task, Function, Authority, Organizational Structure and Work Mechanism of the Office of State Minister as amended several times, the latest by Presidential Regulation No. 20/2008;
• 9. Presidential Regulation No. 10/2005 concerning the Organizational Unit and Task of First Echelon Officials of the Office of State Minister as amended several times, the latest by Presidential Regulation No. 21/2008;
• 10. Decision of the Minister of Industry and Trade No. 558/MPP/Kep/12/1998 concerning General Provisions in Export as amended several times, the latest by Regulation of the Minister of Trade No. 01/M-DAG/PER/1/2007
• 11. Regulation of the Minister of Trade No. 01/M-DAG/PER/3/2005 concerning the Organizational Structure and Work Mechanism of the Ministry of Trade as amended by Regulation of the Minister of Trade No. 34/M-DAG/PER/8/2007;
• 12. Regulation of the Minister of Finance No. 145/PMK.04/2007 concerning Customs Provisions in Export;

By observing:

• 1. The summary of a meeting with the Vice President about Developments in Exports and Industries as well as in Commodities Price on November 14, 2008;
• 2. Letter of the Minister of Agriculture No. 309/PD.320/M/12/2008 dated December 30, 2008;
• 3. Letter of the Minister of Energy and Mineral Resources No. 7228/80/MEM.S/2008 dated December 30, 2008;

DECIDES:

To stipulate:

REGULATION OF THE MINISTER OF TRADE CONCERNING THE EXPORT OF GOODS REQUIRED TO USE LETTERS OF CREDIT.

Article 1

The export of goods as intended in Attachment I to this Ministerial Regulation can only be conducted by paying letters of credit (L/Cs) through a domestic foreign exchange bank.

Article 2

Payments for L/Cs (export proceeds) as intended in Article 1 shall be channelled and received through a domestic foreign exchange bank.

Article 3

Exporters shall put L/C numbers in the export notification (PEB) any time when they export the goods as intended in Article 1.

Article 4

Goods which are to be exported without the obligation to use export customs notification or under other special regulation, are excepted from this Ministerial Regulation.

Article 5

(1) Exporters that export the goods as intended in Attachment I to this Ministerial Regulation shall submit a quarterly report on the realization of exports to the Minister of Trade in this case the Director General of foreign Trade.

(2) The model of the report on the realization of exports as intended in paragraph (1) shall be as contained in Attachment II to this Ministerial Regulation.

Article 6

(1) Exporters that violate provisions in Article 1, Article 2, Article 3 and Article 5 paragraph (1) shall be subject to sanction in the form of postponement in the export of goods as intended in Attachment I to this Ministerial Regulation and/or other sanction based on the legislations.

(2) Exporters can resume the export of goods as intended in Attachment I to this Ministerial Regulation after they have exported goods using L/Cs and submitted a report on the realization of exports as intended in Article 5 paragraph (1).

Article 7

Further provisions needed to implement this Ministerial Regulation are to be set by the Director General of Foreign Trade of the Ministry of Trade.

Article 8

This Ministerial Regulation shall come into force 2 (two) months after the date of stipulation.

For public cognizance, this Ministerial Regulation shall be announced by placing it in the State Gazette of the Republic of Indonesia.

Stipulated in Jakarta
on January 5, 2009
THE MINISTER OF TRADE,
signed,
MARI ELKA PANGESTU