Freeport finally applies L/C payment system

Gold and copper giant PT Freeport Indonesia has finally applied the required L/C payment system in making export as its request for a second exemption has yet to be approved by the Ministry of Trade.

?We continue to seek for an exemption (in the use of L/C). But export can?t be delayed. So we decided to use the L/C mechanism,? said PT Freeport Spokesman Riza Pratama as quoted by Bisnis Indonesia Monday.

Riza, however, added that the company will need more time for adjustment if the L/C payment system is to be implemented for its entire copper concentrates export.

The Ministry of Trade issued a new ruling early this year for the use of L/C payment system in the export of the country?s key commodities, effective April. But a number of companies including PT Freeport obtained an exemption to implement the new requirement as they needed extra time to make adjustment particularly with the overseas buyers.

The paper said that PT Freeport has requested for another exemption since end of July before the first exemption expired, but the Ministry of Trade has yet to approve the request. Freeport holds a permit for the export of 775,000 tons of concentrates for the period July 2015-January 2016. (*)