Pertamina opposes L/C requirement

By Godang Sitompul

State-owned oil and gas firm PT Pertamina opposes a new government regulation that requires the use of letter of credit (L/C) payment system in the export of the country?s key commodities including oil and gas.

Didik Sasongko Widi, senior vice president for marketing of gas at Pertamina, told Petromindo.com that the new L/C requirement would undermine the country?s LNG export to the traditional buyers. ?Amid the current tight market condition, it (the L/C requirement) will make Indonesia?s LNG to be less competitive,? he said.

The Ministry of Trade has recently introduced a new regulation requiring the use of L/C payment system in the export of several commodities starting April of this year. The Indonesian Petroleum Association (IPA) on Wednesday also issued a statement appealing to the government not to apply the L/C requirement to the country?s oil and gas export.

Editing by Reiner Simanjuntak