Discusses the most common methods of payment, such as open account, letter of credit, cash in advance, documentary collections, factoring, etc. Includes credit-rating and collection agencies in this country. Includes primary credit or charge cards used in this country.
Last Published: 2/4/2019

U.S. firms exporting to Indonesia use a variety of payment methods depending on their relationship with the purchaser.  Payment options for export transactions include letters of credit (L/C), cash in advance, wire transfer, cash on delivery, and open account.

Confirmed, irrevocable letters of credit, while imposing additional costs, minimize risks faced by the exporter.  On July 21, 2017, the Government of Indonesia released Government Regulation No. 29/2017 on Methods of Payment and Delivery of Goods in Export and Import Activities.  The scope of this Government Regulation covers the manner of payment of goods, the manner of delivery of goods, and supervision. In terms of payment methods, exporters may pay with cash, a Letter of Credit (L/C), or other means of payment for goods.  For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide available at www.Export.gov/TradeFinanceGuide.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.