Indonesian Coffee Letter of Credit (LC): Complete 2026 Guide

A zero-discrepancy checklist and exact LC wording for Indonesian green coffee shipments in 2026—what to include, what to avoid, who issues each document, and how to hit first‑presentation acceptance.

If you’ve ever had a coffee LC rejected over a tiny mismatch, you know the pain. We’ve seen LCs fail on a missing HS code, a bag mark typo, or a bill of lading that didn’t say “clean on board.” The good news. Indonesian coffee can be a zero‑discrepancy category if you set the documents and wording up front. Here’s exactly how we draft, schedule, and present LC documents so they pass on the first try.

The core LC document set for Indonesian green coffee

In our experience, 90% of coffee credits call for some version of the following. If a buyer insists on more, we align the wording to UCP 600 and the practical reality at Indonesian ports.

Commercial Invoice. Include buyer/applicant name, LC number, HS code 0901, Incoterms, origin Indonesia, and net/gross weights.
Packing List. Show bag count, net weight per bag, gross weight, pallet count if any, and clear bag marks.
Transport Document. Full set of original ocean bills of lading. Clean on board. Shipper, consignee, notify, ports, and on-board date.
Certificate of Origin. Either non-preferential SKA issued under Indonesia’s e‑SKA system or a REX statement for EU preferences when applicable. Don’t ask for both unless you truly need both.
ICO Certificate of Origin for coffee. Often required by banks for coffee. Issued by Indonesia’s authorized ICO issuing agency.
Phytosanitary Certificate. Issued by Indonesia’s Plant Quarantine Agency at port of loading when required by the destination market or the LC.
Weight and Quality Certificate. Issued by an independent surveyor such as Sucofindo, SGS, or Surveyor Indonesia. Typical wording makes weight “final at port of loading.”
Fumigation Certificate. Only when legally required at destination or explicitly called in the LC.
Insurance. Only for CIF/CIP. Ensure currency, amount, and Institute Clauses match the LC.

Practical takeaway. If you don’t need phyto, fumigation, or insurance under your sale term, don’t let them creep into the LC. Every extra doc is an extra chance for a discrepancy.

Is an ICO Certificate of Origin mandatory?

Often, yes in coffee LCs, even when customs doesn’t demand it. Banks and traders like the traceability. In Indonesia it’s issued through the national ICO issuing agency designated by the Ministry of Trade. Your exporter applies prior to shipment and receives a numbered original. Allow 1–2 working days once data is complete.

If your buyer doesn’t need the ICO certificate, delete it from the LC. If they do, keep the clause simple. “ICO Certificate of Origin for coffee, issued by the authorized body in Indonesia, showing ICO number and origin Indonesia.”

Who can issue weight and quality certificates in Indonesia?

We regularly use Sucofindo, SGS, and Surveyor Indonesia. All three are acceptable to banks when the LC says “by first class independent surveyor” or names any of them specifically. Don’t lock yourself into a single firm unless you must. Port schedules change.

Suggested LC clause. “Certificate of weight and quality issued by Sucofindo or SGS or Surveyor Indonesia, showing net and gross weight, number of bags, and grade/defects as shipped. Weight final at port of loading.”

Do EU buyers require a phytosanitary certificate for green coffee?

As a rule, the EU doesn’t require phyto for green coffee beans. Some buyers still put it in the LC by habit. If the LC requires phyto, we’ll get it from Indonesia’s Plant Quarantine Agency (Barantan) at the port. If the buyer doesn’t need it, remove it. Otherwise you’ll pay fees, add lead time, and risk timing issues for no benefit.

How should the bill of lading be worded for coffee under an LC?

Here’s the wording that keeps banks happy and avoids UCP 600 headaches.

Clean on board bills of lading. “Clean on board” or an on‑board notation dated on or before the latest shipment date.
Full set of originals. Make it explicit.
Consignee. “To order of [issuing bank]” or “To order” if the bank is comfortable. Notify party is the applicant.
Vessel and ports. State the vessel name, port of loading in Indonesia, and port of discharge. If the route likely transships at Singapore, make sure the LC says “Transshipment allowed.” Containerized coffee almost always transships.
Freight terms. Match the sale term. CFR/CIF requires “Freight prepaid.” FOB typically shows “Freight collect.”

Common pitfalls. Prohibiting transshipment on a container move. Requiring a straight consigned B/L to the applicant when the bank wants a negotiable B/L. Missing the “on board” notation date. Transshipment at a Southeast Asian port at dusk: a gantry crane lifts a container between two container ships while a forklift moves pallets of jute coffee bags on the quay; workers in safety vests oversee the operation under warm lights.

UCP 600 tolerance, dates, and presentation that actually work

Quantity tolerance. UCP 600 allows a 5% quantity tolerance unless the LC states the goods in packing units like “320 bags.” Coffee is bagged, so the 5% rule often won’t apply if the LC fixes the number of bags. We recommend stating weight as the controlling figure and allowing “±5% on weight.”
“About” or “approximately.” If used, banks can accept ±10% on amount and quantity. Use this only when buyer agrees.
Latest shipment date and presentation. We target shipment at least 3–5 days before the LC’s latest shipment date. For presentation, keep the UCP default. “Documents must be presented within 21 calendar days after shipment but no later than the LC expiry.” Anything shorter than 14 days is risky for coffee.

The exact LC wording that prevents 80% of discrepancies

Below is a document clause set we’ve used successfully for Indonesian green coffee such as Arabica Java Ijen Grade 1 Green Coffee Beans and Robusta Lampung Green Coffee Beans (ELB & Grades 2–4). Adapt it to your Incoterms and destination.

Documents required:

Signed commercial invoice in 1 original and 2 copies stating LC number, HS code 0901, origin Indonesia, Incoterms [CFR/CIF/FOB] [Port], and detailed description of goods. Quantity: [Weight] MT net in new jute bags, weight final at port of loading. Price as per LC.
Packing list in 1 original and 2 copies showing bag count, net weight per bag, gross weight, and bag marks: “[Buyer short code]/[Origin]/[Crop year]/[Lot or PO].”
Full set of clean on board ocean bills of lading made out “to order of [issuing bank]”, notify applicant, marked “Freight [prepaid/collect]”, indicating port of loading [Indonesia] and port of discharge [Destination], showing on board date not later than latest shipment date. Transshipment allowed. Partial shipments allowed.
Certificate of origin. Either (a) SKA issued under Indonesia’s e‑SKA by authorized body, showing origin Indonesia. Or (b) for EU preferential purposes, a REX statement of origin issued by registered exporter. Only one required.
ICO Certificate of Origin for coffee issued by the authorized issuing body in Indonesia, showing origin Indonesia and ICO reference.
Certificate of weight and quality issued by Sucofindo or SGS or Surveyor Indonesia at port of loading, showing net/gross weights, number of bags, and grade/defects. Weight final at port of loading.
Phytosanitary certificate issued by the Plant Quarantine Agency of Indonesia at port of loading, if required by destination regulations.
Insurance policy/certificate for CIF/CIP only. Minimum 110% of invoice value, covering Institute Cargo Clauses (A), Institute War, and Institute Strikes, in the LC currency, claims payable at destination.

Keep all terms bankable. Avoid subjective wording like “premium quality” or “fresh harvest aroma.” Put grades, screen size, or SCA points in the surveyor certificate instead.

Need a quick review of your draft LC text before it goes to the bank? We can mark it up with bank‑friendly wording and timelines. Contact us on whatsapp.

SKA versus REX. Which certificate of origin does my coffee need?

SKA (Surat Keterangan Asal). Indonesia’s non‑preferential certificate of origin issued by authorized bodies under the Ministry of Trade via the e‑SKA system. Works for most destinations and when no tariff preference is claimed.
REX Statement of Origin. For EU preferential origin claims where Indonesia is eligible and the exporter is registered in REX. It appears on the invoice with the exporter’s REX number. If you don’t need preference, SKA is simpler. Don’t require both unless a customs broker insists.

Fumigation. When to include it and when to skip it

Coffee in new jute or polypropylene bags rarely needs fumigation, and some markets restrict methyl bromide. If the LC must mention fumigation, use flexible wording. “Fumigation certificate issued by licensed fumigator, treatment compliant with destination regulations.” Don’t force a specific gas unless the destination law says so.

The 10 most common LC discrepancies we see in coffee (and how to avoid them)

Bag marks mismatch. Agree a simple format up front and copy‑paste it everywhere.
HS code missing. Put HS 0901 on the invoice and, if possible, on the packing list.
“Number of bags” fixed in LC. Then the shipper loads 2 extra bags. Use weight as the control and allow ±5%.
Transshipment prohibited. Fix it. Container coffee transships.
On‑board date after latest shipment date. Load earlier or extend the LC before sailing.
Wrong consignee format. Use “to order of issuing bank” unless the bank instructs otherwise.
Calling both SKA and REX. Pick one based on the duty regime.
Mandatory phyto when destination doesn’t require it. Remove it to save time and fees.
Naming one surveyor only. Allow Sucofindo/SGS/Surveyor Indonesia to keep options open.
Presentation period too short. Keep 21 days under UCP 600.

Timelines that hit first‑presentation acceptance

Here’s how we schedule a typical 1x40’ container of Sumatra Mandheling Green Coffee Beans:

LC receipt and check. Day 0–2. We edit for bankability and request amendments immediately.
Pre‑shipment survey booking (Sucofindo/SGS). Day 3–5.
Stuffing and on‑board. Day 7–10. We aim to load 3–5 days before latest shipment date.
Final docs issued. Day 10–13. Surveyor issues weight/quality. ICO and SKA printed. Phyto if required.
Bank presentation. Day 14–16. Within UCP’s 21 days and before LC expiry at our bank’s counters in Indonesia.

What’s interesting is that small things like leaving the “notify party” blank in the LC can stall everything. So we confirm every field in writing with the buyer, including bag marks, grade, and even the exact product name as it will appear, for example “Arabica Bali Kintamani Grade 1” if you’re buying our Arabica Bali Kintamani Grade 1 Green Coffee Beans.

Final takeaways you can use today

Keep the document set lean. If customs doesn’t need it, the LC shouldn’t either.
Write surveyor and CO clauses to allow acceptable alternatives. That preserves flexibility.
Control by weight, not bag count. And give yourself ±5% where possible.
Don’t ban transshipment on a container move. You’ll fail before you start.
Stick with UCP 600 defaults on presentation period. 21 days works.

If you’d like us to sanity‑check your next LC or align it with your product and route, just share the draft. And if you’re still choosing lots, you can browse current offerings here. View our products.