Bonded Warehouse in Indonesia – Guide for Importers

For companies importing into Indonesia, utilizing specialized customs facilities like Bonded Warehouses provides a distinct regulatory advantage. These facilities are authorized by Indonesian customs to help businesses manage international trade flows more effectively, particularly concerning the timing of duty and tax payments.

This article provides an overview of bonded warehouses in Indonesia, its importance in importation, and key requirements for using bonded warehouses. 

Bonded Warehouses in Indonesia: How Do They Work?

What is a Bonded Warehouse in Indonesia?

A bonded warehouse in Indonesia is a specialized storage facility authorized by customs authorities to store imported goods without immediate payment of duties and taxes. This setup allows businesses to delay duty payments until the goods are either exported or cleared for domestic consumption. 

Furthermore, bonded warehouses support various activities such as packaging, sorting and labeling. This enables importers to prepare goods for local markets or re-export them without incurring import duties.

Bonded Warehouse vs. Regular Warehouse

Unlike regular warehouses, bonded facilities operate under strict customs supervision and require specific licenses. They offer the key benefit of duty and tax deferral, which standard warehouses cannot provide. Bonded warehouses may also offer enhanced security and customs clearance support.

Different Types of Bonded Warehouses

Each type of bonded warehouse in Indonesia plays a crucial role in supporting different sectors of the economy, from manufacturing to retail, and contributes to Indonesia’s position as a logistics hub in Southeast Asia. There are several types of bonded warehouses:

• Industrial Support Warehouses – primarily serve industrial companies by storing imported goods for manufacturing, mining, heavy equipment, and petroleum services. They enable industries to manage raw materials efficiently without immediate duty payments, facilitating production processes.
• Bonded Warehouse for Duty-Free Shops – specifically designed to store and distribute goods to duty-free shops in Indonesia. It ensures that goods remain tax-free until they are sold, benefiting both the retailers and consumers.
• Transit Bonded Warehouse – used for the temporary storage and distribution of goods to areas outside customs zones. They facilitate the movement of goods through Indonesia without the need for immediate customs clearance, making them ideal for transit trade.
• Bonded Logistics Center (PLB) – multifunctional warehouses offer flexibility in import and export operations, tax benefits, and extended storage periods of up to three years. PLBs support various activities like maintenance, cutting, and surveyor inspections, enhancing logistics efficiency and reducing costs for businesses.

Key Legal Framework for Bonded Warehouses in Indonesia

Operating or using bonded warehouses in Indonesia falls under regulations managed by the Directorate General of Customs and Excise (DJBC). Key laws (like the Customs Law No. 10/1995 as amended) and government regulations (like GR 32/2009 and GR 85/2015 regarding PLBs) establish the rules.

These regulations define requirements for operators, permitted activities, customs supervision procedures, and the incentives available. You don’t need to know every law number, but understanding that these facilities operate under strict customs control and require specific licensing and compliance is essential.

Emerhub provides expert guidance on compliance procedures and licensing requirements for using bonded warehouses or PLBs in Indonesia.

Why Use a Bonded Warehouse? Key Benefits for Importers

Using a bonded warehouse or PLB in Indonesia offers significant advantages for your business:

1. Tax and Duty Exemptions

Bonded warehouses offer significant tax benefits, including exemptions from VAT and sales tax on luxury goods. Importers can store goods without paying duties until they are sold or re-exported, which helps manage cash flow and reduce upfront cost. This exemption is particularly beneficial for industries dealing with high-value or luxury items, where taxes can be substantial.

2. Operational Flexibility

Bonded warehouses in Indonesia allow for various activities such as repackaging, sorting, and labeling, enabling importers to prepare goods for local markets or re-export them efficiently. This flexibility enhances supply chain efficiency by allowing you to manage inventory effectively and respond quickly to market demands.

3. Strategic Locations Near Ports

Bonded warehouses are often located near ports and airports, which reduces transportation costs and time. This proximity minimizes the risk of damage during transit and ensures faster delivery to end markets or manufacturing sites.

4. Reduced Logistics Costs

By storing goods in bonded warehouses, you can avoid the costs associated with overseas storage and import duties. This setup is particularly beneficial for industries like textiles, where logistics expenses can be significantly reduced, allowing more resources to be allocated to production and innovation.

5. Improved Supply Chain Management

Storing goods in bonded warehouses closer to markets or manufacturing sites increases supply chain efficiency. This proximity allows for quicker response times to changes in demand and ensures that goods are readily available for distribution, enhancing overall supply chain performance.

Requirements for Using Bonded Warehouses in Indonesia

To leverage a bonded warehouse (either operating one or storing goods within one), your business typically needs to meet several requirements in Indonesia. 

(Note: Using an Importer of Record service can bypass many of these direct requirements for the foreign company).

Legal and Corporate Requirements

To use a bonded warehouse in Indonesia, both local and foreign companies must comply with specific legal and corporate requirements. These documents verify that you have a legal entity in Indonesia and are compliant with regulations by the Ministry of Law and Human Rights. Here’s an overview of the key documents and requirements:

• Deed of Establishment – essential for establishing a company in Indonesia. It outlines the company’s identity, objectives, and structure.
• Company Tax Card (NPWP) – required for all tax-related activities, including applying for other business licenses and opening a corporate bank account.
• Articles of Association – regulate the company’s internal governance, including the board of directors, shareholders, and business objectives. It must be included in the Deed of Establishment and outline the company’s structure and operational framework.
• Company Domicile Certificate – confirms the company’s official address and is mandatory for companies headquartered outside Jakarta.

Investment and Business Permits

Compliance with investment and business permits ensures regulatory compliance by adhering to zoning regulations, environmental standards, and other legal requirements. Compliance also qualifies businesses for tax incentives and exemptions such as import duty postponement and non-collection of certain taxes. Here are investment and business permits you must have as a requirement for using bonded warehouses in Indonesia:

• Record of Investment Registration/Principle Permit/Investment Permit – essential for PT PMA to operate in Indonesia. It is issued by the Investment Coordinating Board (BKPM) or the local government’s investment agency (DPMPTSP).
• Business Place Permit (SITU) – confirms that a business is allowed to operate from a specific location. It is issued by the local government.
• Location Permit – required to ensure that the business location complies with local zoning and land-use regulations.
• Environmental Permits – necessary for companies that have environmental impact assessments (UKL/UPL/AMDAL). They ensure that the business operations do not harm the environment.

Import and Customs Requirements

Import and customs requirements are essential to ensure regulatory compliance with customs laws in Indonesia. These documents certify that your company is eligible to import or export goods from overseas. Below are import and custom requirements to use bonded warehouses: 

• Import Identification Number (API) – essential for importing goods into Indonesia. It is categorized into two types: API-U for general trading purposes and API-P for goods used in production.
• Customs Identity Number (NIK) – a personal identity number issued by the Directorate General of Customs and Excise. It allows importers and exporters to access the customs system.
• Customs Declaration (PIB) – a mandatory document for importing goods into Indonesia. It must be submitted to customs authorities.

With Emerhub’s Importer of Record (IOR) service, we act as your consignee and can help handle all the necessary documentation and customs clearance procedures. Our service allows you to import goods into Indonesia without needing to establish a local entity, thereby speeding up the import process. 

Emerhub’s network of professionals can help you quickly move your products to the Indonesian market with our IOR service! Coordinate with our local experts by filling out the form below.