Govt delays implementation of CIF system for export

The government has decided to delay the implementation of the planned cost, insurance, and freight (CIF) terms of delivery for export, Bisnis Indonesia daily reported Tuesday.

This was revealed in a draft letter of the Trade Minister Gita Wirjawan to the Minister of Finance M. Chatib Basri, a copy of which was obtained by the paper, in which Gita said that there are many factors that must be considered before applying the new system.

The paper quoted Gita as saying that the move to delay the CIF system was also made following inputs from exporters that they?re not yet ready with the new system.

As reported earlier, the government planned to switch the terms of delivery for export including coal export to the CIF system from the free on board (FOB) system in August as part of the government?s move to reduce widening current account deficit as well as to help bolster the role of domestic logistics-related companies in export activity. (*)