Jakarta, March 5 - Indonesia has delayed a new trade rule covering payment for exports by up to six months because of strong opposition from exporters, Trade Minister said on Thursday.
The regulation would require exporters of key commodities to use letters of credit for export payments, and is one of several measures aimed at propping up the weak rupiah currency , by ensuring that export revenues are kept onshore.
Pangestu said implementation has been postponed from March 5 to April 1 for tin and crude palm oil, and to September 1 for rubber, cocoa and coffee. The trade ministry also amended the rule, saying that letters of credit were only needed for shipments worth more than $1 million.
"The delay is to allow more time for preparation," Pangestu told reporters, following a meeting with industry associations.
She said that despite the delay, exporters of key commodities are required to report details of their export activities to the ministry, including export payments methods, payment documents showing the date of payment, the name of banks receiving export payments, as well as the exporters' bank account numbers.
The government regulation is meant to ensure that revenues from exports are transferred to onshore banks.
However, exporters have opposed it, saying buyers may buy elsewhere rather than pay for the commodities they purchase before shipments.
"It is like telling people who have used fax to use telegram instead," said Daud Husni Bestari, chairman of Indonesian Rubber Producers Association.
Trade data released on Monday showed Indonesia's January exports fell a worse-than-expected 36 percent, the biggest annual decline in more than 22 years, as global demand for key commodities such as palm oil and rubber slumped.
Indonesia is one of the world's top producers of coffee, rubber, cocoa, tin, nickel and coal. Prices of most commodities have struggled to recover from their recent falls amid weak demand in the global slowdown.
Currently, buyers can wait until they have received shipment documents to make payment.