Indonesia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in indonesia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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The Government of Indonesia continues to actively promote Bonded Zones (Kawasan Berikat) and special economic zones (SEZs, or Kawasan Ekonomi Khusus/KEK) as strategic platforms to attract foreign exporters, manufacturers, and logistics providers. These zones offer customs and tax incentives that significantly reduce the cost and complexity of importing raw materials, intermediate goods, and capital equipment for export-oriented or value-added activities.

Goods imported into these Bonded Zones (Kawasan Berikat) can be stored, assembled, manufactured, or re-exported without incurring import duties or value-added tax (VAT). Tariffs and other levies apply only if the goods are subsequently released into the domestic customs territory.

As of 2025, key bonded logistics hubs in Greater Jakarta include:

  • Tanjung Priok Port – Indonesia’s most prominent and busiest seaport, connected to central bonded warehouses.
  • Cakung Industrial Estate – A key manufacturing and logistics base with integrated bonded facilities
  • Marunda Center Bonded Zone – Serving industrial tenants with port-access infrastructure
  • Kawasan Berikat Nusantara (KBN) – A state-run bonded zone operator offering logistics and warehouse services; details at www.kbn.co.id

Businesses operating in bonded zones must comply with customs reporting and inventory tracking regulations. Goods released into Indonesia’s domestic market from bonded areas become subject to import duties and VAT.

Indonesia now has 24 designated SEZs, with new zones focusing on EV battery production, carbon trading platforms, and digital hubs, particularly in areas like North Kalimantan, South Sulawesi, and West Java. Morowali and Halmahera continue to rise in importance as downstream nickel processing hubs aligned with Indonesia’s EV battery strategy. These zones are governed under Law No. 39/2009 and further streamlined through the Omnibus Law and Presidential Regulation No. 9/2021, which improved business licensing, land access, and labor regulations.

Benefits of operating in an SEZ include:

  • Tax holidays and corporate income tax reductions (up to 20 years)
  • Full exemptions from import duties, VAT, and luxury goods tax (PPnBM)
  • Simplified customs clearance and immigration processing
  • Single-window licensing through the Online Single Submission (OSS) system
  • Direct access to ports, airports, and logistics corridors

SEZs are tailored to strategic sectors such as:

  • Export-oriented manufacturing
  • Technology, innovation, and digital services
  • Logistics and e-commerce fulfillment
  • Renewable energy and green industry
  • Sustainable tourism and hospitality
  • Mineral refining and downstream processing

Notable SEZs include:

  • Batam-Bintan-Karimun (BBK) Free Trade Zone – Near Singapore, focused on electronics, logistics, and shipbuilding
  • Kendal SEZ (Central Java) – A joint Indonesia-Singapore initiative emphasizing innovative industry and automation
  • Likupang (North Sulawesi) – A sustainable tourism SEZ under the “Five Super Priority Destinations” program
  • Gresik (East Java) – An industrial SEZ targeting downstream nickel, petrochemicals, and renewable energy investments

Foreign firms planning temporary entry or project-based operations in bonded zones or SEZs should:

  • Coordinate with zone administrators and BKPM (Ministry of Investment) early in the planning process
  • Utilize the OSS-RBA (Risk-Based Approach) system for integrated licensing and customs access
  • Comply with local sourcing or TKDN (Domestic Component Level) requirements for specific sectors
  • Engage local legal or logistics experts to streamline documentation and import-export approvals

Indonesia’s bonded and SEZ frameworks are increasingly integrated into its broader national logistics and export development strategy, aligning with the Golden Indonesia 2045 vision to transform into a high-income nation. These zones offer U.S. and global companies a flexible, cost-efficient platform to enter and scale in the Indonesian and ASEAN markets.

To learn more about Special Economic Zones and list of economic zones, please visit Indonesia National Council for SEZ.

 

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