China-India Dual Park Batang Industrial Park honored with large bonded zone qualification

On September 2, 2024, China-Indonesia Binational Park-Batang Industrial Park was awarded the PKB qualification of the Great Free Trade Zone, which is the fourth Great Free Trade Zone license approved by the province of Central Java, and is the only Chinese-funded park that has been awarded this honor.According to Decree Perdirjen Bea Cukai No. PER-19/BC/2018, a bonded zone is a bonded warehousing area that is used to store imported goods and local raw materials for the purpose of producing goods for export, and in short, it is mainly oriented towards export-oriented industries. Bonded zones are generally located near ports, as the main purpose of bonded zones is to increase Indonesia's exports.Bonded zones can be categorized into 3 types:1) KB operator (Penyelenggara Kawasan Berikat), 2) KB entrepreneur (Pengusaha Kawasan Berikat), and 3) Entrepreneur within KB (Pengusaha Dalam Kawasan Berikat) Bonded Zone Facilities and Incentives Businesses with a bonded zone license , they can be exempted from customs duty, import tax (PPh 22), value added tax (PPN), and luxury tax (PPnBM). These policies are designed to enable businesses to reduce the cost of importing raw materials and capital goods in the hope that they can export their products at more competitive prices in the global market.

Depending on the origin of the goods to be brought into the bonded zone, the following concessions are granted for materials/goods:Not all goods can enjoy the benefits of the bonded zone, according to PMK No. 131 Tahun 2018, the following goods are eligible for bonded preferences: 1) Raw materials, auxiliary materials, samples, and capital goods; 2) Packaging and auxiliary materials for packaging; 3) Fuel and office equipment; 4) Finished and semi-finished products for assembly and production; 5) Goods temporarily exported and re-entered into the bonded zone; and 6) Re-entered entered raw products; a. Pajak Penjualan atas Barang Mewah (PPnBM) → is a tax levied on goods categorized as luxury goods. b. Barang Kena Pajak (BKP) → is goods that are taxed under the value-added tax law. c. Tempat Lain Dalam Daerah Pabean ( TLDPP) → is the rest of the Indonesian Customs area. d. Barang Kena Cukai (BKC) → is certain commodities that require additional fees due to the need to control their distribution and use because of their negative impact on the community or environment. e. Barang Kena Cukai (BKC) → is the most common type of goods in Indonesia. f. Barang Kena Cukai (BKC) → is the most common type of goods in Indonesia. Examples: cigarettes and alcoholic beverages.