SKK Migas negotiates with Trade Ministry to revise L/C Regulation
KATADATA ? The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) is still attempting to cancel the mandatory of letter of credit (L/C) for oil and gas export. Currently, SKK Migas is still negotiating with the Trade Ministry so that they could revise the L/C regulation.
?We?re still trying to negotiate with the Trade Ministry to revise it,? said the Head of Public Relation of SKK Migas, Elan Biantoro, to Katadata, Wednesday (19/8).
The mandatory L/C when exporting is included in the Trade Minister?s Regulation No. 04/M-DAG/PER/1/2015, which effective immediately on April 1st 2015. There are 4 commodities that must use the L/C, which are mineral, coal, oil and gas, and palm oil. Lately, since there are protests from the industry subjects, the government has given some exceptions for oil and gas exporters. Thus, they do not need to use the L/C in the export activity. When exporting, they only need to report and ask for permission to the Trade Ministry.
However, SKK Migas saw that the ?privilege? is still inadequate. ?It?s because all this time in the regulation there?s no statement regarding the exception for oil and gas that they?re allowed not to use L/C,? said Elan. And as the result, all this time SKK Migas still needs to deal with the recommendation to the Trade Ministry regarding every contractors of the cooperation contract (KKKS) who want to do export.
Thus, SKK wants the Trade Ministry to revise the regulation. Elan saw that the L/C is used for business entity, while the exported commodity in the oil and gas sector still belongs to the state. ?85% of the oil belongs to the government. If we need to use the L/C, the government would always interfere for every problem. L/C ?s nature is only for business entity,? said Elan.
Meanwhile, the Ministry?s Acting Director General for Foreign Trade, Karyanto Suprih, admitted that they are currently discussing with SKK Migas regarding the request to revise the mandatory L/C regulation for oil and gas exporters. However, until now the Trade Ministry still has no intention to revise the law. ?So far there?s still no plan to revise the L/C mandatory for oil and gas exporters,? said Karyanto.
