The Government Issues New Regulation on Payment and Delivery of Goods in Export Import Activities
On 21 July 2017, the Government of the Republic Indonesia issued Regulation No. 29 of 2017 on Procedure of Payment and Delivery of Goods in respect of Export and Import Activities (Regulation 29) which came into effect on 24 July 2017.
Regulation 29 is the implementing regulation of Article 40 paragraph (2) of Law No. 7 of 2014 on Trade (Trade Law), and revokes Article 3 of Government Regulation No. 1 of 1982 as lastly amended by Regulation No. 24 of 1985 on Implementation of Export, Import and Foreign Exchange Trade.
The government considers it is necessary to provide a clear provision on the procedure of payment and delivery of goods in respect of export and import activities - both to protect the stakeholders in Indonesia and to improve the national economy in general.
As Regulation 29 is a government regulation, it appears that it only provides principles and general guidance rather than giving details of implementation. Thus, until clearer implementing regulations are issued, it may be subject to multiple interpretations.