In an attempt to enhance industrial competitiveness and to maintain the vestment climate, as well as a means of implementation on job creation and domestic economic recovery, the Government issued Minister of Finance Regulation No. 65/2021 on 10 June 2021, which provides additional incentives and facilities for Bonded Zones Entrepreneurs or Entrepreneurs within Bonded Zones in carrying out the implementation of Bonded Zones.

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Legal Alert March 2023
Incentives and facilities for Bonded Zones
Entrepreneurs or Entrepreneurs within Bonded
Zones
I. Introduction
The rapid development of industry and trade raises public demands for the
government to ensure legal certainty in the business world. Governments, as the
facilitator of trades, shall be able to make a rule of law that can anticipate
developments in society that aim to provide services and supervision that are
faster, better, and cheaper. In facilitating trade, the government is present in
supervising the traffic of goods entering or leaving the territory of the Republic of
Indonesia.
The Bonded Zones is a customs area under the supervision of the Directorate
General of Customs and Excise, defined as an area formed to enhance the
competitiveness of domestic industries and to maintain an investment climate,
which shall be realized by providing facilities in the field of customs and excise to
ease (i) licensing services, (ii) operational activity services, and/or (iii) others.
To further improve the competitiveness of domestic industries and to maintain the
investment climate as well as a form of implementation of job creation and national
economic recovery, the Government, through The Minister of Finance of the
Republic of Indonesia ("MoF"), issued Minister of Finance Regulation Number
65/PMK.04/021 concerning Amendments to Minister of Finance Regulation
Number 131/PMK.04/2018 on Bonded Zones ("MoFR No. 65/2021") on 10 June
2021. Such regulation provides additional types of goods that obtain facilities in
bonded zones and other additional provisions.
II. Key Additions
A. Additional types of goods that obtain facilities in the bonded zone
Goods in the form of raw materials, auxiliary materials, and/or packaging
and packaging tools owned by foreign tax subjects which are intended to be
exported by way of processing or assembling the goods in the Bonded
Zones beforehand, so long as the goods remain in the bonded zone until
they are exported,1 or are not released from bonded zones except for the
delivery process between bonded zones and/or temporary release,2 are
classified as an additional type of goods that obtain facilities in the bonded
zones with the following conditions:
1. Postponement of import duties, excise exemption, and/or non-collection
of taxes in the context of imports (pajak dalam rangka impor or "PDRI”),
1
Article 20 (3a) Jo. Article 21 (3a) MoFR No. 65/2021.
2
Article 20 (3b) Jo. Article 21 (3b) MoFR No. 65/2021.
In attempt to enhance
industrial competitiveness
and to maintain
investment climate, as well
as a means of
implementation on job
creation and domestic
economic recovery, the
Government issued
Minister of Finance
Regulation No. 65/2021 on
10 June 2021, which
provides additional
incentives and facilities for
Bonded Zones
Entrepreneurs or
Entrepreneurs within
Bonded Zones in carrying
out the implementation of
Bonded Zones.

2. AHRP Legal Alert Page 2 of 5
for goods which are entered from outside of customs area to Bonded
Zones.3
2. Postponement of import duties, excise exemption, non-collection of
PDRI, and/or non-collection of value added tax (Pajak Pertambahan
Nilai or "PPN") or PPN and sales tax on luxury goods (Pajak Penjualan
atas Barang Mewah or "PPnBM"), for goods which are originating
outside the customs area that entered from (i) bonded storage zone, (ii)
free trade zone, (iii) special economic zone, or (iv) other economic zones
as determined by the government to the bonded zones.4
3. Exemption from excise duty and/or non-collection of PPN or PPN and
PPnBM, in the case of goods originating from other places within the
customs area that are entered into the bonded zones from (i) other
locations within the customs area, (ii) free trade zone, (iii) other bonded
storage zones, (iv) special economic zone, and/or (v) other economic
zones as determined by the government.5
4. PPN or PPN and PPnBM are not payable, and no issuance of tax invoice
for the entry of goods as referred to in points 1, 2, and 3 above if the
goods (i) are originating from non-taxable entrepreneurs, and/or (ii) are
not classified as the delivery of taxable goods.6
B. Imposition of additional obligations on imported goods which are not
intended for export
Released goods from the bonded zones in the form of:7
1. raw materials and/or remaining raw materials;
2. auxiliary materials and/or remaining auxiliary materials;
3. packaging and packaging tools;
4. finished and semi-finished goods;
5. sample goods;
6. capital goods;
7. office equipment;
8. goods for the purposes and/or results of the company's research and
development;
9. remainder of the production process; and/or
10. remainder of packages and wastes,
which are originating from outside the customs area, and are released to
other locations within the customs area with the purpose of being imported
for use, then the goods are subject to additional obligations to clear the PPN
or PPN and PPnBM at the time of release,8 in which the obligations imposed
for the goods are only for import duties, excise, and PDRI. However, there
3
Article 20 (1) MoFR No. 65/2021.
4
Article 20 (2) MoFR No. 65/2021.
5
Article 21 (1) MoFR No. 65/2021.
6
Article 20 (4) Jo. Article 21 (2) MoFR No. 65/2021.
7
Article 24 (1) MoFR No. 65/2021 Jo. Article 23 (2) MoFR No. 131/2018.
8
Article 24 (1) MoFR No. 65/2021.

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is a new incentive in which the obligation to pay import duties, excise duties
and/or PDRI shall be exempted from the release of the remainder of
packages and wastes.9
Additionally, for goods which are owned by foreign tax subjects in the form
of raw materials, auxiliary materials, and/or packaging and packaging tools,
including their processing and kitting results which are released to another
location within the customs area, the entrepreneur who releases such goods
shall settle their import duties, excise, PDRI, and/or PPN or PPN and
PPnBM,10 in which such provisions were not regulated in MoFR No.
131/2021.
Obligations arising at the time of the release of goods as described above
must be paid at the time of registration of documents for release.11
C. Release of goods from the head office to branch offices and/or
between branch offices
Release of goods in the form of:
1. raw materials and/or remaining raw materials;
2. auxiliary materials and/or remaining auxiliary materials;
3. packaging and packaging tools;
4. finished and semi-finished production;
5. sample items;
6. capital goods;
7. office equipment;
8. goods for the purposes and /or results of the company's research and
development;
9. remainder of the production process; and/or
10. remainder of packages and wastes,
from the head office to the branch office, and/or between branch offices,
which causes goods being removed from the bonded zones to other
locations within the customs area, is subject to import duty, excise, PDRI,
and/or PPN or PPN and PPnBM.12
The release of goods as mentioned above does not include raw materials,
auxiliary materials, and/or packaging and packaging tools which are owned
by foreign tax subjects, who are granted for postponement of import duty,
excise exemption, non-collection of PDRI, and/or non-collection of PPN or
PPN and PPnBM due to the provision of bonded zone facilities.13
9
Article 24 (7) MoFR No. 65/2021.
10
Article 24 (1a) MoFR No. 65/2021.
11
Article 24 (1c) Jo. Article 29C (4) MoFR No. 65/2021.
12
Article 29C (1) and (2) MoFR No. 65/2021.
13
Article 29C (3) MoFR No. 65/2021.

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D. Amendments in settlement methods
The settlement method which was previously regulated in MoFR No.
131/2018, was subjected to activities of export, transfer to other bonded
zones, and/or release of goods to other locations within the customs area.
However, there has been an amendment in the settlement method, where
the provisions for the release of goods to other locations within the customs
area have been removed and amended to the obligation for settlement of
PPN or PPN and PPnBM which are not collected at the entry phase.14
E. Corporate guarantee as a guarantee of fulfillment of provisions on
bonded zones
Bonded zones entrepreneurs or entrepreneurs in bonded zones who are
classified in low-risk profile may use corporate guarantee as collateral for the
fulfillment of provisions on bonded zones,15 which were not regulated
previously in MoFR No.131/2018. The procedure for using corporate
guarantees can be done by submitting an application to the Head of the
Regional Office or the Head of the Main Office.16 In giving approval or
rejection, the Head of Regional Office or the Head of Main Office shall
provide reasonings for rejection and shall conduct an investigation on the
risk profile and financial statements of the Bonded Zones Entrepreneurs or
Entrepreneurs in Bonded Zones beforehand.17
Conclusion
The Government through MoFR No. 65/2021 provides additional incentives for
Bonded Zones Entrepreneurs or Entrepreneurs in Bonded Zones for the
implementation of Bonded Zones in the form of (i) additional types of goods which
obtained facilities in the Bonded Zone, (ii) imposing additional obligations for
imported goods that are not intended for export, (iii) issuing goods from the head
office to branch offices and/or between branch offices. In addition, MoFR No.
65/2021 has made amendments, in which the provisions regulated in MoFR No.
131/2018 on the issuance of goods to other places in the customs area have been
removed and amended to settle PPN or PPN and PPnBM which are not collected
at the time of the entry of goods. Furthermore, MoFR No. 65/2021 provides Bonded
Zones Entrepreneurs or Entrepreneurs in Bonded Zones to be able to use
corporate guarantees as collateral by submitting the request to the Head of the
Regional Office or the Head of the Main Office.
14
Article 45 (5) MoFR No. 65/2021.
15
Article 51 (1) MoFR No. 65/2021.
16
Article 51 (2) MoFR No. 65/2021.
17
Article 51 (3) MoFR No. 65/2021.

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Bibliography/References
1. Minister of Finance Regulation Number 131/PMK.04/2018 concerning
Bonded Zones ("MoFR No. 131/2018").
2. Minister of Finance Regulation Number 65/PMK.04/021 concerning
Amendments to Minister of Finance Regulation Number 131/PMK.04/2018
concerning Bonded Zones ("MoFR No. 65/2021").

6. This publication has been prepared by AHRP for educational and informational purposes only. The information contained in this publication is not
intended and should not be construed as legal advice. Due to the rapidly changing nature of law, AHRP makes no warranty or guarantee
concerning the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it
applies to your circumstances before deciding to take any action.
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