Letter of Credit Requirement for Indonesian Commodities Exports Has Been Revoked
August 5, 2010
This is a quick client alert to note that the Ministry of Trade has revoked the requirement to use letters of credit issued by a local bank for the export of certain Indonesian commodities - coal, various minerals, crude palm oil, coal, cocoa, rubber and coffee. This requirement was extremely unpopular for the additional complexity it introduced into the structuring of Indonesian commodity financing and investments, and its removal is very welcome. This will considerably simplify the structuring of this aspect of Indonesian commodity deals. Please feel free to get in touch if you would like to discuss.
* O'Melveny & Myers LLP is not licensed to practice law in Indonesia, and this Client Alert should not be construed as providing advice concerning the laws of Indonesia or of any other country or jurisdiction. The foregoing should not be construed as an opinion on the laws of Indonesia. Readers should consult with Indonesian counsel for legal advice on the matters addressed herein.
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