AreaIndonesia

Commodity GroupOilseeds, oils and meals

CommodityPalmkernel oil

Date01/01/2015

Policy CategoryTrade

Policy InstrumentTrade policy

DescriptionIntroduced mandatory letters of credit for commodity exports, in an effort to allow public entities to gather accurate records of foreign exchange flows.

Notes From April 2015 onward, all commodity exporters – including exporters of palm and palmkernel oil – will be required to use letters of credit for overseas shipments. Reportedly, the use of this instrument has been made mandatory to allow Indonesia’s central bank to gather accurate records of foreign exchange flows.