Indonesia's top miner, PT Timah, has emerged as another large metals and minerals producer to struggle with the country's new legislation on letters of credit (L/Cs) for exports of certain commodities.

Legislation introduced earlier this year specified that L/Cs must be used for exports of four primary commodities (DC World News, 16 February 2015).

Clearance granted

PT Timah has been granted government clearance to resume tin exports and is hoping to dispatch its next shipment by early September, company and government officials are reported as saying.

The state-owned miner called a halt to exports when new rules were introduced in early August and, in common with several miners, it has been tied up by what appears to be government red-tape ever since.

No other tin companies have been granted an export permit according to local media.

Tax payments

Indonesia is tightening its rules for exports of some commodities as part of government efforts to capture foreign exchange and ensure payment of taxes.

The Indonesian unit of Freeport-McMoRan, which runs one of the biggest copper mines in Indonesia, has also halted its exports as it attempts to conform to the new L/C regulations, (DC World News, 17 August 2015).

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