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The Operative Letter of Credit is a crucial document in international trade finance, particularly relevant in the Indonesian context where it must comply with both local banking regulations and international standards. This document is used when an Indonesian importer needs to provide payment security to an overseas exporter, or when an Indonesian exporter requires payment guarantee from a foreign buyer's bank. The Letter of Credit contains detailed specifications about the transaction, including payment terms, shipping requirements, and document presentation conditions. It operates under Indonesian banking laws, particularly Bank Indonesia Regulation No. 5/11/PBI/2003 and Law No. 7 of 1992 as amended by Law No. 10 of 1998, while also conforming to international UCP 600 guidelines. The document serves as a binding commitment from the issuing bank to pay the beneficiary upon presentation of compliant documents, thereby reducing risk for both parties in international trade transactions.

1. Issuing Bank Details: Complete name and address of the issuing bank in Indonesia

2. L/C Number and Date: Unique letter of credit reference number and date of issuance

3. L/C Type and Rules: Specification that this is an irrevocable L/C and reference to UCP 600

4. Beneficiary Details: Full name and address of the beneficiary (exporter)

5. Applicant Details: Full name and address of the applicant (importer)

6. Amount and Currency: L/C value and currency, including tolerance if any

7. Expiry Details: Expiry date and place for document presentation

8. Shipment Terms: Latest shipment date, partial shipments, transhipment permissions

9. Required Documents: Detailed list of all required documents for L/C negotiation

10. Goods Description: Precise description of goods, quantity, unit price, and trade terms

11. Payment Terms: Payment conditions, sight or usance, negotiation instructions

12. Bank Charges: Distribution of banking charges between parties