Freeport obtains recommendation to delay L/C requirement

The Ministry of Energy and Mineral Resources has given recommendation for gold and copper giant PT Freeport Indonesia to delay in applying the required L/C payment system in making export, Bisnis Indonesia reported Friday.

The paper quoted Director General of Mineral and Coal R. Sukhyar as saying that the letter of recommendation has been sent to the Ministry of Trade.

He explained that Freeport would be exempted from applying the L/C payment system for six months. After that, the government will make a review, and the company may apply for another delay.

The Ministry of Trade has recently issued a new policy requiring companies to use the L/C payment system in the export of key commodities such as coal, mineral, palm oil, and oil and gas. But many miners and oil and gas firms have protested the new policy as shifting to the new payment system would add cost and requires renewal of contract with the overseas buyers. (*)