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A Clean Letter of Credit is a specialized form of bank undertaking commonly used in Indonesian trade finance where the documentary requirements are minimized compared to traditional documentary credits. This instrument is particularly valuable when parties have established trading relationships or in transactions involving services rather than physical goods. The Clean Letter of Credit provides payment security while reducing documentary complexity, typically requiring only basic commercial documents such as invoices rather than extensive shipping documentation. Under Indonesian banking regulations and the UCP 600, this instrument offers a balance between payment security and operational simplicity, making it especially suitable for recurring transactions, service contracts, or situations where shipping documents are not relevant. The document must comply with Bank Indonesia regulations, particularly regarding foreign exchange transactions and banking operations.

1. Letter Date and Reference Number: The date of issuance and unique reference number of the Letter of Credit

2. Issuing Bank Details: Complete details of the bank issuing the Letter of Credit

3. Beneficiary Details: Full name and address of the party receiving payment under the Letter of Credit

4. Applicant Details: Full name and address of the party requesting the Letter of Credit

5. Credit Amount and Currency: The specific amount and currency of the Letter of Credit

6. Expiry Date and Place: The date and location where the Letter of Credit expires

7. Payment Terms: Specification of when and how payment will be made (at sight, deferred payment, etc.)

8. Documents Required: List of documents required for presentation under the Clean Letter of Credit

9. Special Conditions: Any specific terms or conditions applicable to this Letter of Credit