Special Economic Zones (SEZ)

Understand fiscal facilities, import duty exemptions, and ease of customs procedures to boost your business's logistics efficiency in Indonesia's Special Economic Zones (SEZ).

What is a Special Economic Zone?

Special Economic Zones (SEZ) are areas with certain boundaries within the legal territory of the Unitary State of the Republic of Indonesia which are designated to carry out economic functions and obtain certain facilities.

The main objective of SEZs is to maximize industrial activity, exports, imports, and other high-value economic activities. SEZs are provided with special incentives in the form of exemptions from import duties, PDRI (Import Tax), and ease of commodity licensing to increase investment competitiveness.

Main Facilities in the KEK Area:
  • Suspension or Exemption of **Import Duty and Excise**.
  • **VAT, PPnBM, and PPh Article 22 Import** are not collected.
  • Ease of physical inspection of goods (risk management-based inspection).
  • Logistics system that is directly integrated with the main port.

KEK System and Procedure Flow

Mechanism for movement of goods in and out of/to Special Economic Zones

1. Import of Goods (Import/Local)

Goods from abroad (imports) or from Other Places Within the Customs Area (TLDDP) are entered into the KEK using special customs notification documents (PJKEK) to obtain tax deferral/exemption facilities.

2. Processing & Logistics in SEZ

Raw materials are stored, produced, processed or assembled in the Special Economic Zone by Business Entities or Business Actors without being subject to domestic tax burdens as long as operations are within the Special Economic Zone customs area.

3. Expenditures (Re-export/Local)

If the goods are exported abroad, the tax exemption is permanent. If the goods are released to the local market (TLDDP), new import duties and taxes must be paid based on the commodity tariff.

Customs Regulatory Basis

Customs operations in the SEZ area are fully regulated under the strict legal umbrella of the Indonesian government:

PP No. 40 Tahun 2021
Tentang Penyelenggaraan Kawasan Ekonomi Khusus.
PMK No. 33/PMK.010/2021
Mengenai Perlakuan Perpajakan, Kepabeanan, dan Cukai pada Kawasan Ekonomi Khusus.

Need help processing KEK documents?

Managing SEZ customs requires an understanding of document codes, tariff classifications, and an IT inventory system that's synchronized with Customs. Consult with our team of PPJK experts today about your cargo commodity requirements.

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