REGULATION OF THE MINISTER OF TRADE
NUMBER 10/M-DAG/PER/3/2009

CONCERNING
THE EXPORT OF GOODS REQUIRED TO HAVE LETTERS OF CREDIT

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

Considering:

• a. that to implement the policy on the export of goods effectively, it is necessary to re-stipulate provisions the export of goods required to have Letters of Credit (L/Cs);
• b. that in consideration as intended in a, it is necessary to stipulate a Regulation of the Minister of Trade;

In view of:

• 1. Trade Ordinance 1934 (Statute Book No. 86 of 1938);
• 2. Law No. 7 of 1994 concerning the Ratification of Agreement Establishing The World Trade Organization (Statute Book No. 57 of 1994, Supplement to Statute Book No. 3564);
• 3. Law No.10 of 1995 concerning Customs (Statute Book No. 75 of 1995, Supplement to Statute Book No.3612) as amended by Law No. 17 of 2006 (Statute Book No. 93 of 2006, Supplement to Statute Book No. 4661);
• 4. Law No. 10 of 2004 concerning the Enactment of Law (Statute Book No. 53 of 2004, Supplement to Statute Book No. 4389);
• 5. Government Regulation No. 1 of 1982 concerning the Realization of Exports, Imports and Foreign Exchange Traffic (Statute Book No. 1 of 1982, Supplement to Statute Book No. 3210) as amended by Government Regulation No. 24 of 1985 (Statute Book No. 33 of 1985, Supplement to Statute Book No. 3291);
• 6. Presidential Decree No. 260 of 1967 concerning the Affirmation of Tasks and Responsibilities 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 Decision No. 171/M of 2005;
• 8. Presidential Regulation No. 9 of 2005 concerning the Position, Task, Function, Authority, Organizational Structure of State Ministries of the Republic of Indonesia as amended several times, the latest by Presidential Regulation No. 20 of 2008;
• 9. Presidential Regulation No.10 of 2005 concerning the Organizational Unit and Task of First Echelon Officials of State Ministries of the Republic of Indonesia as amended several times, the latest by Presidential Regulation No. 21 of 2008;
• 10. Decision of the Minister of Industry and Trade No. 558/MPP/Kep/12/1998 concerning General Provisions in the 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;

DECIDES:

To stipulate:

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

Article 1

(1) The export of Crude Palm Oil (CPO) and mining products as contained in Attachment I and Coffee, Cocoa and Rubber as contained in Attachment II to this Regulation of the Minister of Trade, with the export value of more than 1,000,000 (one million) United States dollars in each Notification of Exported Goods (PEB), shall be conducted by paying Letters of Credit (L/Cs) through a Domestic Foreign Exchange Bank.

(2) The export of goods as contained in Attachments I and II to this Regulation of the Minister of Trade, with the export value up to 1,000,000 (one million) United States Dollars in each PEB, can be conducted by paying L/Cs or other internationally accepted payment through a Domestic Foreign Exchange Bank.

Article 2

Export proceeds by means of L/Cs or other means of payment from the export of goods as intended in Article 1 shall be channelled and received through Domestic Foreign Exchange Bank.

Article 3

(1) Any export of goods as intended in Article 1 paragraph (1) shall put the no. and date of L/C in PEB.

(2) Any export of goods as intended in Article 1 paragraph (2) shall put in PEB:

• a. the method of paying L/Cs or other ways of payment; and
• b. the no. and date of L/Cs or the no. and date of other ways of payment, if any.

Article 4

The export of goods which is exempted from the obligation to use PEB or which is specifically governed by other regulations, is exempted from this Regulation of the Minister of Trade

Article 5

(1) The exporters who conduct the export of goods as intended in Article 1 shall submit a report on the realization of exports in complete and correct manner every month to the Minister of Trade in this case the Director General of Foreign Trade.

(2) The report on the realization of exports as intended in paragraph (1) shall contains PEB number, the method of payment, account number and the name of the Domestic Foreign Exchange Bank receiving export proceeds as contained in Attachment III to this Regulation of the Minister of Trade and shall be submitted every month no later than the 10th of the ensuing month.

Article 6

(1) When this Regulation of the Minister of Trade begins to take effect, the exporters of goods as intended in Article 1 paragraph (1) who are still bound to a contract with importers can apply to the Minister of Trade for a delay in the obligation to use L/Cs through a Domestic Foreign Exchange Bank until August 31, 2009.

(2) The Minister of Trade in this case the Director General of Foreign Trade can grant the delay as intended in paragraph (1) based on the results of evaluation by an inter ministerial Team.

(3) The inter ministerial Team as intended in paragraph (2) is formed by the Minister of Trade.

Article 7

(1) The obligation to use L/Cs through a Domestic Foreign Exchange Bank for:

• a. the export of CPO and Mining Products as intended in Article 1 paragraph (1) shall begin to take effect on April 1, 2009;
• b. the export of Coffee, Cocoa and Rubber as intended in Article 1 paragraph (1) shall begin to take effect on September 1, 2009.

(2) The export of goods as intended in paragraph (1) b. can use L/Cs or other internationally accepted payment which must be channelled and received through a Domestic Foreign Exchange Bank from April 1, 2009 to August 31, 2009.

(3) The obligation to put the no. and date of L/C in PEB for:

• a. the export of goods as intended in paragraph (1) a. shall begin to take effect on April 1, 2009;
• b. the export of goods as intended in paragraph (1) b. shall begin to take effect on September 1, 2009.

(4) The export of goods as intended in paragraph (1) b. and Article 1 paragraph (2) beginning on April 1, 2009 shall put in PEB:

• a. L/C or other ways of payment; and
• b. the no. and date of L/C or the no. and date of other ways of payment, if any.

Article 8

The exporters who violate provisions in Article 1 paragraph (1), Article 2, Article 3, Article 5, and Article 7 shall be liable to a sanction in the form of suspension of the next export of goods as contained in Attachment I and Attachment II to this Regulation of the Minister of Trade and/or other sanction based on the legislations.

Article 9

The exporters as intended in Article 8 can resume the export of goods as contained in Attachment I and Attachment II to this Regulation of the Minister of Trade if they have met provisions in Article 1 paragraph (1), Article 2, Article 3, Article 5 and Article 7.

Article 10

Attachment I, Attachment Il, and Attachment III constitute as an integral parts of this Regulation of the Minister of Trade.

Article 11

Further provisions needed to implement this Regulation of the Minister of Trade are to be stipulated by the Director General of Foreign Trade, Ministry of Trade.

Article 12

When this Regulation of the Minister of Trade begins to take effect, Regulation of the Minister of Trade No. 01/MDAG/PER/1/2009 concerning the Export of Goods Required to Have Letters of Credit, shall be declared null and void.

Article 13

This Regulation of the Minister of Trade shall come into force as from the date of stipulation.

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

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