REGULATION OF THE MINISTER OF TRADE
No. 38/M-DAG/PER/8/2009

CONCERNING
AMENDMENT TO REGULATION OF THE MINISTER OF TRADE NO. 10/M-DAG/PER/3/2009
CONCERNING THE EXPORT OF GOODS REQUIRED TO USE LETTER 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 make adjustments to provisions on the obligation to export goods by using Letters of Credit (L/Cs) payment;
• b. that base on consideration in a, it is necessary to stipulate a Regulation of the Minister of Trade;

In view of:

• 1. Trade Ordinance 1934 (Statute Book No. 86/1938);
• 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 of 1995 concerning Customs (Statute Book No. 75/1995, Supplement to Statute Book No. 3612) as amended by Law No. 17/2006 (Statute Book No. 93/2006, Supplement to Statute Book No. 4661);
• 4. Law No. 10/2004 concerning the Enactment of Law (Statute Book No. 53/2004, Supplement to Statute Book No. 4389);
• 5. Government Regulation No. 1/1982 concerning the Realization of Exports, Imports and Foreign Exchange Traffic (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 Tasks and Responsibilities of the Minister of Trade in the Field of Foreign Trade;
• 7. Presidential Decree No. 187/M/2004 concerning the Formation of the United Indonesia Cabinet as amended several times, the latest by Presidential Decision No. 171/M/2005;
• 8. Presidential Regulation No. 9/2005 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. 20/2008;
• 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. 21/2008;
• 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;

HAS DECIDED:

To stipulate:

REGULATION OF THE MINISTER OF TRADE CONCERNING AMENDMENT TO REGULATION OF THE MINISTER OF TRADE NO. 10/M-DAG/PER/3/2009 CONCERNING THE EXPORT OF GOODS REQUIRED TO USE LETTER OF CREDIT

Article I

Several provisions in Regulation of the Minister of Trade No. 10/M-DAG/PER/3/2009 concerning the Export of Goods Required to Use Letters of Credit (L/C) shall be amended as follows:

1. Article 1 Shall be amended so that it reads as follows:

"Article 1

(1) The export of Crude Palm Oil (CPO), Mining Products, Coffee, Cocoa, and Rubber as contained in Attachment I to this Ministerial Regulation, with an export value of more than 1,000,000 (one million) United States dollars in each export notification (PEB), shall be conducted by using Letter of Credit (L/C) payment through a Domestic Foreign Exchange Bank.

(2) The export of goods as contained in Attachment I to this Ministerial Regulation, with an export value of up to 1,000,000 (one million) United States dollars in each PEB, may be conducted by using L/C payment or other payment way acceptable to the international trade."

2. Article 5 shall be amended so that it reads as follows:

"Article 5

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

(2) The report of export realization as intended in paragraph (1) is contained in Attachment II to this Ministerial Regulation and shall carry at least:

• a. identity of the company;
• b. date and number of PEB;
• c. export volume;
• d. Free On Board (FOB) value;
• e. payment way; and
• f. account number as well as name and address of the Domestic Foreign Exchange Bank receiving export proceeds.

(3) The report of export proceeds as intended in paragraph (1) is contained in Attachment III to this Ministerial Regulation and shall carry at least:

• a. identity of the company;
• b. date and no. of PEB;
• c. value of export proceeds;
• d. number of export proceeds receipt;

(4) The report of export realization and report of export proceeds as intended in paragraph (1) shall be submitted no later than the 10th of the ensuing month through http://inatrade.depdag.go.id.

(5) The report of export realization and report of export proceeds as intended in paragraph (1) until October 31, 2009 can also be submitted by an electronic mail through the following addresses:

• a. dir1-daglu@depdag.go.id, for CPO, Coffee, Cocoa and Rubber; and
• b. dir2-daglu@depdag.go.id, for Mining Products."

3. Article 6 shall be abolished.

4. Article 7 shall be amended so that it reads as follows:

"Article 7

(1) The obligation to use the method of L/C payment through a Domestic Foreign Exchange Bank for the export of goods as intended in Article 1 paragraph (1) shall take effect as of November 1, 2009.

(2) The export of goods as intended in paragraph (1) may using L/C payment or other payment way acceptable to the international trade from September 1, 2009 to October 31, 2009.

(3) The obligation to put the number and date of L/C in PEB as intended in Article 3 paragraph (1) shall take effect as of November 1, 2009.

(4) The obligation to put in PEB the way of L/C payment as well as its number and date, or other way of payment as well as the number and date of its payment document, if any, as intended in Article 3 paragraph (2) shall take effect as of April 1, 2009."

5. Article 8 shall be amended so that it reads as follows:

"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 of having their next export of goods as contained in Attachment I to this Ministerial Regulation and/or other sanctions based on the legislations."

6. Article 9 shall be amended so that it reads as follows:

"Article 9

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

7. Attachment I, Attachment II and Attachment III to Regulation of the Minister of Trade No. 10/M-DAG/PER/3/2009 concerning the Export of Goods Required to Use Letters of Credit shall be changed into Attachment I, Attachment II and Attachment III to this Ministerial Regulation.

Article II

This Ministerial Regulation shall come into force as from 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 August 31, 2009
THE MINISTER OF TRADE
signed,
MARI ELKA PANGESTU