Indonesian Coffee Payment Terms: TT, DP, OA (2025 Guide)

A practical, step-by-step playbook for using D/P (Documents against Payment) at sight with Indonesian coffee exporters. What to prepare, how the bank collection works under URC 522, fees, timelines, sample contract wording, and fraud prevention.

We’ve turned cautious first-time buyers into repeat partners in under a quarter by fixing one thing first. Payment terms. If you’re evaluating TT, DP at sight, and OA for Indonesian coffee in 2025, here’s the focused playbook we use internally and with our customers worldwide.

The three pillars: TT, D/P at sight, OA

TT (Telegraphic Transfer). Simple bank transfer. Works best for small samples, repeat orders, or when trust is established. Typical patterns in our world: 30/70 or 20/80 TT. Buyers like speed. Sellers carry risk until balance clears.
D/P at sight (Documents against Payment). Your bank releases original documents only after you pay. No letter of credit required. Governed by ICC URC 522. Balanced risk for first shipments if you set it up correctly.
OA (Open Account). You receive goods and pay later. Requires strong relationship and often credit insurance. Great for scale but not for a first container unless you have trade credit coverage.

We recommend most first-time container buyers start with D/P at sight, sometimes with a small TT deposit to secure production and space.

The D/P at sight system that actually works

Here’s the streamlined sequence we run for green coffee (FOB, CFR, or CIF) under URC 522.

Contract and proforma. Define product spec by lot, moisture, screen size, defects, packaging, and cupping. If you’re booking our Blue Batak Green Coffee Beans CFR Hamburg under D/P at sight, your PI will show Incoterms, port, HS code, and the exact document list to be presented through banks.
Optional TT deposit. 10–30% is common. We use it to lock crop, book space, hedge FX, and start pre-shipment QC. Balance is collected by your bank at sight.
Shipment and documents. We ship, then lodge full originals with our remitting bank in Indonesia. The bank sends your collecting bank the package under URC 522 instructions.
Your bank notifies you. You pay the bank. The bank releases originals or an e-release message to the carrier. You collect the cargo.
Post-landing. You clear customs with the commercial invoice, packing list, phytosanitary certificate, and any preferences (Form D/other where applicable). You surrender the B/L or use the telex release, then pick up with the delivery order.

What documents are needed for D/P at sight when importing Indonesian coffee?

We usually present:

Bill of Lading. 3/3 originals, clean on board, consigned “to order of [collecting bank]”, notify buyer. No seaway bill.
Commercial Invoice. Matches contract, HS code, Incoterms, bank coordinates, and country of origin.
Packing List. Bag count, net/gross, lots and markings.
Certificate of Origin. Preferential where available.
Phytosanitary Certificate. Required by most destinations.
Quality/Cupping or Weight Certificate. If agreed.
Insurance Policy/Certificate. Only if CIF/CIP.

We add a bank collection schedule referencing URC 522. Minor details matter. For example, exact buyer name must match importer of record for customs and bank KYC. Overhead flat lay of the full document set for a D/P at sight shipment—multiple original bills of lading, invoice, packing list, certificates—arranged with stamps, seal press, and green coffee beans on a wooden table.

How long does D/P at sight take from shipment to cargo release?

In our experience:

Docs from Indonesia to your bank: 3–7 calendar days via courier.
Bank notification to you: 1–3 business days.
Your payment posting and document release: same day to 2 business days.
Ocean transit: typically 18–35 days to US/EU from Indonesia.

If you align the courier arrival with the vessel ETA, you avoid storage. We time it so your bank has documents 5–10 days before the ship berths.

Is a 20–30% TT deposit normal before D/P at sight with Indonesian exporters?

Yes. We see 10–30% often, particularly peak-crop or tight-space months. Why it exists:

Reserves specific lots and shipping space.
Protects against FX moves and origin price volatility.
Commits both sides before we issue the B/L to bank.

We don’t recommend 100% TT for a first container. A small TT deposit plus D/P at sight balance is the healthy middle.

Which Incoterms work best with D/P at sight from Indonesia?

CFR or CIF. Cleanest for D/P. We control the booking and can ensure the B/L is consigned to the collecting bank. You still manage insurance under CFR, or we provide it under CIF.
FOB. Possible, but riskier for the exporter if the buyer’s forwarder controls the B/L. If you insist on FOB, agree in writing that the carrier issues a negotiable B/L “to order of collecting bank” and that no telex release occurs without bank instruction.

Our rule of thumb: first shipment D/P at sight. Use CFR/CIF. After two smooth rounds, shift to FOB if you prefer.

How do I avoid fraud or fake bills of lading under D/P collections?

Practical steps we insist on:

Carrier-issued negotiable B/L. Not a house B/L from an unknown NVOCC. Major liners or reputable NVOCCs only.
B/L consigned “to order of [collecting bank].” Notify buyer. This prevents unauthorized release.
No seaway bill. Avoid “straight” B/L unless your bank confirms process. Only telex release after your bank confirms payment and instructs the carrier.
Verify release instruction. Your bank should send a tested SWIFT or email from a known, verified channel to the line/agent.
Match details. Vessel name, voyage, container number, and seal number must match packing list and draft B/L.
Keep URC 522 in the collection instruction. It gives both banks a shared rulebook for what to accept and how to handle discrepancies.

For 2025, we’re seeing more eBL pilots. Banks still prefer paper in D/P. If you want eBL, confirm both banks, the carrier, and your customs broker can actually process it end-to-end.

What bank fees should I expect for D/P at sight from Indonesia?

These vary, but ballpark ranges from our recent files:

Exporter side (Indonesia remitting bank). USD 25–75 outward collection fee. Courier USD 25–50. Small stamp duty. Total typically USD 50–120.
Buyer side (collecting bank). 0.10–0.25% of amount, minimum USD 75–150. Plus handling USD 30–60 and SWIFT USD 20–40. Some banks add a document release or acceptance fee.

Non-bank costs to remember: shipping line delivery order, port storage, demurrage. These are unrelated to D/P but hit if timing slips.

Can I use D/P at sight for my first container without a letter of credit?

Yes, and many of our partners do. It works best when you:

Agree on a small TT deposit and D/P balance at sight.
Use CFR/CIF and a carrier-issued negotiable B/L.
Get pre-shipment photos, lab results, and cupping notes. For example, if you’re booking Arabica Bali Kintamani Grade 1 Green Coffee Beans, we share QC and moisture data before stuffing.
Align your broker and bank early so document names match importer records.

If your internal policy requires more credit control, consider D/P plus trade credit insurance on your side. That’s a practical bridge before moving to OA.

Step-by-step: the D/P at sight process you can copy

Week 1–2. Finalize contract and PI. Confirm Incoterms, ports, and document list. Your bank provides the collecting bank details and any special wording. We draft the D/P clause and B/L instruction.
Week 3–6. Production and booking. Optional 10–30% TT deposit. Stuffing, fumigation if needed, QA. On board. Draft docs sent for your review.
Week 7–10. Documents to your bank. You pay at sight. Bank releases originals or telex release. Vessel arrives. You clear and pick up.
Week 11–12. Debrief. If you want to scale, we can schedule multiple lots across origins like Flores Green Coffee Beans (Grade 1) or Sumatra Mandheling Green Coffee Beans, using the same D/P rails.

Sample D/P at sight wording you can paste into your contract

“Payment terms: Documents against Payment (D/P) at sight under URC 522. Seller to present through remitting bank the following: clean on-board negotiable ocean B/L made ‘to order of [Collecting Bank Name]’ and ‘notify [Buyer Name and Address]’; commercial invoice; packing list; certificate of origin; phytosanitary certificate; insurance certificate if CIF; any other agreed certificates. Documents to be sent to [Collecting Bank full address and SWIFT]. Release of documents only upon full payment of invoice amount. No telex release without collecting bank instruction.”

How to instruct your bank for D/P at sight

When you fill your bank’s collection form, include:

URC 522 as the governing rules.
Exact list of documents and originals vs copies.
Consignment of B/L to the collecting bank. Notify party as buyer.
No partial release. No acceptance of amendments without your written approval.
Courier tracking and contact person at the collecting bank.

Your bank loves clarity. Precise instructions reduce back-and-forth that costs you days and storage.

2025 updates in Indonesia we’re seeing on D/P

Stricter KYC and sanctions screening. Banks want full buyer address, company registration details, and correct HS code on invoices.
Export proceeds routing. Funds must be remitted to the exporter’s Indonesian bank account in line with Bank Indonesia reporting. Ask your bank to reference invoice and collection number in the remittance message to avoid reconciliation delays.
More carriers accept eBL, but collection banks still default to paper. If you want eBL, pre-clear with both banks and the line.

Common mistakes that kill smooth D/P shipments

Using FOB with a forwarder-issued B/L consigned directly to the buyer. The bank can’t control release.
Seaway bill under D/P. You lose documentary leverage.
Names don’t match. Buyer name on B/L differs from importer records at customs.
Late document courier. Your bank gets the set after vessel arrival. Storage and demurrage follow.

Quick fixes: use CFR/CIF, carrier-issued negotiable B/L, and courier docs to arrive at least a week before ETA.

Takeaways you can use today

For first containers, use D/P at sight plus a 10–30% TT deposit and CFR/CIF Incoterms.
Make the B/L negotiable and consigned to the collecting bank. No seaway bill.
Reference URC 522 in the collection instruction and contract.
Time your document courier so your bank is ready before vessel ETA.

Need help tailoring this to your route and product mix? If you’re planning a D/P at sight shipment for lots like Bali Natural Green Coffee Beans or Sumatra Lintong Green Coffee Beans (Lintong Grade 1), reach out and we’ll map the exact bank and carrier steps to your port. Contact us on whatsapp.

We’ve seen this framework de-risk first buys and speed repeat orders. Once D/P runs smoothly, scaling origin variety and volume becomes the easy part. Then you can start negotiating better freight or shifting to OA for select SKUs with insurance. But that’s a conversation for another day.