Indonesian Seafood: LC vs T/T Payment Terms Guide 2025

A practical, numbers-driven framework to choose LC vs T/T for Indonesian seafood in 2025. Includes hybrid first-order terms you can copy, fee benchmarks, a clean LC document checklist, and a step-by-step plan that reduces risk without killing speed.

If you’re buying Indonesian seafood for the first time, the biggest question isn’t species or specs. It’s LC vs T/T. The safest answer is “LC at sight.” The best answer is “the right structure for your risk and cash flow.” In our experience, a well-built hybrid usually wins for first orders.

Here’s the thing. In 2024–2025, banks have tightened KYC and pushed up confirmation spreads for some corridors. LC costs are higher and timelines can stretch a week. And yet, pure T/T without guardrails exposes you to supplier and shipment risk. So let’s cut through the noise.

Quick answer: What’s safer for a first Indonesian seafood order?

An LC at sight is safer for buyers. Funds only release when the exporter presents compliant documents. But it isn’t always practical for small orders or fast lead times. For many first shipments below USD 100k, we recommend a hybrid: 30% T/T deposit, independent pre-shipment inspection, and the 70% balance against a clean scanned BL copy. If the counterparty or market risk is higher, switch that 70% to LC at sight.

Deposits in Indonesia are typically 30% for new buyers. Some processors ask 50% on niche or sashimi-grade items. Repeat buyers often settle at 20–30%.

A practical decision framework for LC vs T/T in Indonesia

We look at six drivers: order value, supplier verification, product criticality, timeline, buyer’s LC capacity, and currency/country risk.

Low to moderate risk or < USD 30k. T/T 30/70 with third-party inspection and balance against BL copy. Works well for items like Grouper Fillet (IQF) or Frozen Shrimp (Black Tiger, Vannamei & Wild Caught) when specs are clear.
Medium risk or USD 30k–100k, first order. Hybrid: 30% T/T deposit. Then either 70% against BL copy or 70% under LC at sight depending on your internal risk policy and credit insurance.
Higher risk, brand-critical items, or new entity without references. Full LC at sight. If you need terms, consider usance LC 60 days with bank-confirmation. Expect a financing cost embedded in the price.

Takeaway: Start with the hybrid model and move up or down the risk curve as facts change.

Copy-ready hybrid terms you can use on your first order

Here’s a structure we’ve used with new buyers that balances protection and speed:

Payment: 30% T/T deposit upon proforma invoice. 70% T/T balance against clean scanned BL copy, commercial invoice, and packing list. If you need higher protection, replace the 70% with LC at sight.
Inspection: Pre-shipment inspection by SGS/Intertek/Cotecna or buyer’s agent at our plant. Visual, count, weight, core temp, glazing, and random organoleptic checks. For sashimi-grade items like Yellowfin Saku (Sushi Grade), add histamine and temperature logger verification.
Documents: Clean on-board ocean BL. Health Certificate (Fish Quarantine/BKIPM). Certificate of Origin. Weight/packing list. Catch certificate if required by your market. Temperature logger data if stipulated.
Timelines: Shipment within X days of deposit. Doc scans within 48 hours after vessel departure. Courier originals within 3 business days if required by your bank.
Fail-safes: If PSI fails for spec deviations beyond agreed tolerances, seller remedies or replaces. If sailing is delayed beyond the grace period, deposit is creditable to next lot or refundable net of documented costs.

If you want help tailoring this to your bank’s quirks or buyer insurance terms, reach out and we’ll workshop it with you. Need a quick read on what your bank will accept? You can Contact us on whatsapp.

LC fees in Indonesia: benchmarks and who pays

Typical 2025 benchmarks we’re seeing across Indonesian trade desks (your bank may vary):

Issuing bank fee: 0.25%–0.50% per 90 days, minimum USD 200–300.
Advising fee: USD 100–200.
Confirmation: 0.50%–1.50% per 90 days depending on corridor and bank appetite. Some routes tightened 20–40 bps in late 2024.
Negotiation/handling: USD 100–250 per set.
Amendment: USD 50–150.
Discrepancy: USD 50–150 per set if documents don’t match.

Who pays? In most seafood LCs, the buyer covers issuing and confirmation. The seller covers advising/negotiation on our side. We’re flexible, but clarity belongs in the contract.

Can I use an LC for a small USD 30k–50k order?

Yes. But the minimum charges mean your effective cost can hit 1.0–1.8% all-in. If your priority is speed and cost, the 30/70 T/T hybrid with PSI is usually more efficient at that size. If you’re onboarding a new supplier and your board demands LC, we’ll work with it.

What documents should you require under an LC for frozen seafood?

We build LCs that are simple, bankable, and aligned with real export practice. The more exotic the conditions, the more likely you pay discrepancy fees.

Core document set under UCP 600:

Clean on-board ocean bill of lading. Consigned to order, endorsed, notify per buyer instruction. “Stale B/L acceptable” and 21 days presentation is standard.
Commercial invoice matching the LC description and HS code.
Packing/weight list with net, gross, and carton count.
Health Certificate from BKIPM (Fish Quarantine). Required by most markets.
Certificate of Origin. For preference schemes, specify form if applicable.
Catch certificate or IUU docs if your market requires it.
Insurance policy/certificate if CIF/CIP terms.
Third-party inspection certificate if agreed.

Tips to avoid discrepancies:

Use simple product descriptions that match labels and cartons. Don’t cram brand names or specs you might change during packing.
Allow tolerances. “Quantity +/- 5%” and “Unit weight approximately 125 g” are your friends.
Permit partial shipments and transshipment unless your routing forbids it.
Align ports to official names used on BLs. “Surabaya” vs “Tanjung Perak” mismatches cause headaches.
Put latest shipment date with a reasonable buffer. Fishing and cold-chain scheduling move with weather.
If you need data logger reports, state “evidence of temperature logger download acceptable as printout or PDF.”

Sample LC wording (trim to fit your bank):

46A Documents required: Commercial invoice, packing list, clean on-board ocean BL marked ‘Freight Prepaid’, Health Certificate (BKIPM), Certificate of Origin, Pre-shipment Inspection Certificate (SGS/Intertek/Cotecna), Catch Certificate (if required by destination regulation). Stale BL acceptable. Presentation within 21 days.
47A Additional conditions: Partial shipment allowed. Transshipment allowed. Third-party documents acceptable. Quantity +/- 5% acceptable. Weight/size variation within commercial tolerance acceptable.

How to structure T/T terms to reduce risk on your first order

A clean, step-by-step plan speeds execution and keeps everyone honest.

Supplier vetting. Verify company registration, export license, plant code, HACCP certificates, and recent export references. Ask for recent BLs and health certificates redacted for privacy.
Proforma. Lock specs, tolerances, and carton labeling early. Keep descriptions consistent with what will appear on BL and invoices.
Deposit. 30% T/T to start raw material booking and production. For specialty packs or sashimi-grade, you may see 40–50%.
PSI booking. Nominate SGS/Intertek/Cotecna or your agent 48–72 hours pre-loading. They’ll do carton counts, random opens, temp checks, glazing, and labeling verification.
Load and sail. We send draft BL, invoice, and packing list for your review within 24 hours of sailing.
Balance. You release the 70% T/T against a clean scanned BL copy and docs. If your board requires, this step can be LC at sight instead.
Courier originals if needed. Most banks will release on scans for open account or balance-against-BL terms. For LCs, originals follow standard presentation.
Post-arrival QC. If there’s a claim, we solve it fast. We’d rather keep your second order than win the first dispute.

Will Indonesian suppliers accept pre-shipment inspection before the TT balance? Yes. We build PSI into our production schedule routinely. It protects both sides.

Cost example: LC vs T/T on an USD 80k shrimp order

Assumptions. CFR Jebel Ali. 21 days presentation. At sight LC. No confirmation required.

LC route. Issuing 0.30% (USD 240). Advising/negotiation USD 180. Handling/courier USD 120. Likely discrepancy once in three LCs, say USD 100 average. All-in ≈ USD 640 or 0.8%. Add confirmation at 0.80% if required and you’re near 1.6%.
T/T hybrid. Bank wire ≈ USD 25. FX spread 0.30% on USD 56k balance. All-in ≈ USD 193 or 0.24%. You carry slightly more performance risk, which PSI and balance-against-BL mitigate.

Reality check. Some buyers happily pay the LC premium for board-level comfort. Others prefer the hybrid and plow the savings into marketing. Both are valid.

Sight vs usance LC for seafood imports

At sight LC. Best when you want maximum control and minimal supplier financing cost. Faster release, fewer moving parts.
Usance LC 60 days. Eases your cash flow. Expect either a discount on negotiation or a price premium of roughly 0.5–1.5% depending on tenor and bank appetite. Many Indonesian banks will discount usance bills; confirmation costs may be higher in 2025 on certain routes.

Which Indonesian banks handle seafood LCs efficiently?

We routinely see smooth handling from Bank Mandiri, BCA, and BNI trade desks in Jakarta and Surabaya. They understand fisheries documentation, BKIPM timelines, and e-document workflows. On the global side, your LC will move fastest when your issuing bank has clean relationships with these institutions.

Final take

There’s no one-size-fits-all answer to LC vs T/T in Indonesian seafood. For most first orders under USD 100k, a 30/70 T/T with third-party inspection and balance against BL copy is the sweet spot. Dial up to LC at sight when counterpart or regulatory risk calls for it. Use simple, bankable documents. And don’t over-engineer conditions that trigger discrepancies.

If you want to see how we’d structure terms for your exact product mix, we’re happy to sanity-check your draft PO and LC text. You can View our products to explore specifications while we align payment terms to your risk and timeline.