Freeport requests to be exempted from L/C requirement

Gold and copper giant PT Freeport Indonesia has sent a letter to the Ministry of Trade requesting it to be exempted from a new ministry policy requiring the use of L/C payment system in the export of the country's key commodities, reports said Wednesday.

Ferry Ardiyanto, an official at the Directorate General of Excise and Customs, said that the company argued it has been properly reporting its export proceeds to the central bank.

He said the ministry is expected to make a decision this week.

The Ministry of Trade has issued a new regulation, effective April 1, requiring the use of L/C payment system in the export of key commodities including coal, mineral, palm oil, oil and gas to help ensure proper data on the export proceeds.

Several companies notably from the oil and gas sector has also protested the policy.

Ferry said if Freeport's request is approved, the company will use telegraphic bank transfer for payment system.

Freeport has yet to comment. (*)