How to Get a Multimodal Transport Operator (MTO) License in Indonesia

To legally issue Bills of Lading (B/L) in Indonesia’s logistics sector, you need to have a Multimodal Transport Operator (MTO) License. This allows you to reduce administrative bottlenecks, eliminate redundant handoffs between carriers, and provide clients with a “door-to-door” service.

But securing it requires meeting strict financial, operational, and technical standards under Ministry of Transportation regulations. So, how do you obtain an MTO license in Indonesia?

What is an MTO License in Indonesia?

An MTO license allows you to handle international goods transportation using multiple modes like sea, air, road, or rail under a single contract. As an MTO license holder, you act as a “principal” which means you can issue your own transport documents from end-to-end. 

Key benefits of an MTO License:

1. Single Contract Authority: You can offer “door-to-door” service under one bill of lading, making life easier for your clients and increasing your profit margins.
2. Increased Credibility: Holding an MTO license signals to international partners that you meet the high financial and operational standards set by the Indonesian Ministry of Transportation.
3. Expanded Service Scope: allows you to be a logistics solutions provider instead of being a “shipping agent” or a “trucking partner”. 

For instance, you want to ship furniture from Jepara to a showroom in Germany. This journey would involve a truck from Central Java to Separang Port, a feeder vessel to Singapore, an ocean carrier to Hamburg, and finally a rail link to the showroom. 

Typically, you would need to arrange these four different legs with multiple documents (trucking waybill, feeder bill, ocean bill). With an MTO, you can issue a singular Multimodal Bill of Landing for the entire journey. 

Difference Between SIUJPT vs. MTO

It is a common misconception that a standard SIUJPT is the same as an MTO. SIUJPT (Jasa Pengurusan Transportasi) is Indonesia’s official business license for a freight‑forwarding or transport‑handling service company (often called a forwarding or JPT company). This includes services that arrange and manage the shipment and receipt of goods via land, sea, air, or rail.

SIUJPT (Freight Forwarding Service) is regulated under KBLI Code 52291 as a service provider business activity for logistic forwarding. However, the MTO is regulated under the KBLI Code 52295 as an end-to-end logistic service inclusive for the freight forwarding service and logistic delivery. 

Many business owners believe that because a SIUJPT allows them to coordinate various legs of a journey, they are automatically authorized to act as a multimodal operator. However, the legal and operational responsibilities differ significantly.

Here’s how they are different: 

In most practical cases you still need SIUJPT even if you also hold an MTO license since they cover different legal functions under Indonesian transport law.

Requirements to Apply for an MTO License in Indonesia

Under the OSS Risk-based classification, multimodal operators are considered “medium high risk”. Not only do you need to register a legal entity, you also need to adhere to financial and operational capabilities as well as risk-based approach (RBA) compliance. 

1. Legal Entity Setup (PT PMA vs PT PMDN)

To apply for an MTO license, you must be a registered legal entity with KBLI 52291 (Jasa Pengurusan Transportasi – JPT) in your Articles of Association. The requirements differ significantly depending on whether the company is foreign or locally owned:

Feature	PT PMA (Foreign Investment)	PT PMDN (Local Investment)
Minimum Paid-up Capital	25% from the commitment of authorized capital.	Only available for (minimum) Medium Capital Investment, Micro and Small are not available.
Minimum Investment Plan	Minimum has capital equal to 80,000 SDR (Special Drawing Rights) which approximately equal to 108,000 USD as initial (1 SDR equal to 1,35 USD x 80,000)	Minimum has capital equal to 80,000 SDR (Special Drawing Rights) which approximately equal to 108,000 USD as initial (1 SDR equal to 1,35 USD x 80,000)
Ownership	Up to 100% foreign ownership allowed	100% Indonesian ownership
Regulatory Scrutiny	Higher scrutiny during technical verification	Standard verification process

It is vital to ensure your Articles of Association explicitly mention “Multimodal Transport” as a core business activity. 

Without this specific wording, your application will likely be rejected during the synchronization phase between the Ministry of Law and Human Rights and the OSS (Online Single Submission) system.

Emerhub can help you set up an entity in Indonesia. We can help you start your own PT PMA with the correct KBLI code to process an MTO License. 

2. Association Recommendation (ALFI/ILFA)

Per PM 12/2021, it is mandatory to obtain a recommendation letter from the Indonesian Logistics and Forwarders Association (ALFI/ILFA). This requirement acts as a vital quality control mechanism for the Ministry of Transportation so that only verified operators with a legitimate presence in the industry can obtain the license. The association conducts its own internal vetting process, checking the company’s track record and professional standing before issuing the letter.

Without this official endorsement, the Ministry will not proceed with the final verification of the MTO application. Furthermore, being part of ALFI/ILFA provides the operator with legal protection through the association’s Standard Trading Conditions (STC), which are internationally recognized and help mitigate risks during complex multimodal disputes.

3. Employ Technical Experts (Tenaga Ahli)

To qualify for an MTO license, your organization must employ certified technical experts (Tenaga Ahli) who possess the specialized knowledge required to navigate the complexities of international trade. 

These individuals must meet one of the following qualifications:

• Holders of a FIATA Diploma: This is the international gold standard in the industry, certifying a comprehensive understanding of the global freight forwarding and multimodal supply chain.
• Holders of BNSP-certified training: Professionals who have passed the competency tests from the National Professional Certification Agency (BNSP) specifically for logistics or freight forwarding.
• Holders of an IATA Diploma: Specialized experts in air transport logistics often used for air-integrated multimodal legs.
• Graduates with a Diploma (D3) in specialized transport fields: Specifically those with degrees in Shipping, Maritime Affairs, Aviation, or Transportation Management.
• Graduates with a Bachelor’s Degree (S1) in Logistics: Candidates must also hold professional competency certificates in fields like Forwarding, Supply Chain Management, Customs (Kepabeanan), or Port Management (Kepelabuhanan).

It serves as a guarantee that the operator understands the legal and operational intricacies of cross-border transport. This includes customs regulations, international carrier liability laws, and cargo handling protocols.

4. Financial Standing and Operational Proof

To prove financial and operational stability for an MTO license in Indonesia, you must submit specific financial and operational documents via the OSS-RBA system and Ministry of Transportation verification.

5. RBA Compliance

To apply for an MTO license in Indonesia, you also need to have the right know-how to run a complex international operation. This includes: 

• Safety (K3L) Documents
  • Occupational health and safety (K3) policy and risk assessment report.
  • Employee training certificates for safety protocols.
  • Emergency response plan and facility inspection records.
• Environmental Standards Documents
  • Environmental management plan (UKL-UPL or equivalent self-declaration).
  • Waste management and emissions control procedures.
  • Proof of compliance with green logistics standards (e.g., fuel efficiency reports).
• Logistics Capabilities Documents
  • Standard Operating Procedures (SOPs) for cargo handling and multimodal transport.
  • IT systems documentation (e.g., tracking software specs).
  • Cargo insurance policy copies and security compliance statements.

Step-by-step Process of Applying for an MTO License

Once you meet the requirements above, you can formally start the application process through the OSS-RBA system. The process is overseen by the Ministry of Transportation (Kemenhub) in Indonesia and roughly takes 30 to 60 days depending on the completeness of your documents and how quickly your documents are verified. 

Step 1: Company Registration

To start the process, you would need an NIB (Nomor Induk Berusaha) with the right KBLI code. It serves as your single identifier for all interactions with Indonesian ministries. An NIB is automatically-generated as the final step once your submit the following to the OSS RBA system to register your company:

1. Deed of Establishment
2. Ministry of Law Approval (SK Kemenhumham)
3. NPWP (Tax ID Registration)
4. Proof of Address
5. Shareholder Details
6. Correct KBLI Code 

An NIB functions as your Customs Identification Number, allowing you access to the CEISA system managed by the Directorate General of Customs and Excise. It also acts as your Importer Identification Number (API). 

Step 2: Technical Verification by Kemenhub

After the OSS filing, your application moves to the Ministry of Transportation’s internal system (SIMIT). At this stage, the ministry will verify the following:

• Your Multimodal Transport Document: submit a template of the transport document you intend to use. This document must comply with both Indonesian law and international standards (like the UNCTAD/ICC rules).
• Liability Insurance: provide proof of “Carrier’s Liability Insurance” or “Freight Forwarders’ Liability Insurance.” This insurance must cover the total value of the goods you expect to handle.
• Physical Office Inspection: officials will also request a site visit to see if you have a functional office with the necessary hardware and software to track shipments.

Step 3: Approval and Issuance

If all documents are in order and the verification is successful, the Ministry will “verify” your license on the OSS portal. Your NIB will then be updated, and you will receive your Sertifikat Standar (Standard Certificate) which serves as your official MTO license.

At this point, you are legally authorized to sign multimodal contracts. However, remember that you are now under the “Post-Audit” regime, meaning the government can audit your operations at any time to ensure you are maintaining standards. 

Post-PT PMA setup, we can help you obtain an MTO license and liaise with the Ministry of Transportation. 

Post-MTO License Compliance

Once you have an MTO license, you need to adhere to the standards set by the Directorate General of Transportation. You need to demonstrate that you are demonstrating active compliance. 

Regular Operational Reporting

Every MTO license holder is required to submit periodic reports to the Ministry of Transportation. These reports usually include the volume of goods handled, the number of multimodal documents issued, and any incidents or claims that occurred during the period.

Failure to report can lead to administrative sanctions, ranging from warning letters to the temporary suspension of your license. We recommend setting up an internal compliance calendar to ensure these deadlines are never missed.

Managing Liability and Insurance

Under Indonesian law, your liability is “limited” but substantial. If goods are damaged and it’s unclear which mode of transport caused the damage, the MTO is the primary party responsible for compensating the shipper.

You must ensure your insurance policy is renewed annually and that the coverage limits remain adequate as your business grows. If your business volume triples, your old insurance policy might no longer satisfy the Ministry’s requirements during a post-audit.

Keeping Up with Regulatory Changes

As a business owner, you need to stay informed about changes in KBLI codes, foreign ownership caps (Positive Investment List), and digital reporting requirements. At Emerhub, we often see businesses getting “stuck” simply because they didn’t realize a new circular letter (Surat Edaran) had changed a specific document requirement.

At Emerhub, we specialize in navigating the complexities of Indonesian bureaucracy. Whether you are setting up a PT PMA for the first time or need help upgrading your existing freight forwarding license to an MTO, our team is here to ensure the process is smooth, compliant, and direct.

Ready to take your logistics business to the next level? Contact us today to discuss your MTO application.