This is a quick client alert to note that the Ministry of Trade has revoked the requirement to use letters of credit issued by a local bank for the export of certain Indonesian commodities - coal, various minerals, crude palm oil, coal, cocoa, rubber and coffee. This requirement was extremely unpopular for the additional complexity it introduced into the structuring of Indonesian commodity financing and investments, and its removal is very welcome. This will considerably simplify the structuring of this aspect of Indonesian commodity deals. Please feel free to get in touch if you would like to discuss.
O'Melveny & Myers LLP routinely provides advice to clients on complex transactions in which these issues may arise, including finance, mergers and acquisitions, and licensing arrangements. If you have any questions about the operation of the applicable statutory provisions or the case law interpreting these provisions, please contact any of the attorneys listed on this alert.
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