A bonded zone in Indonesia (kawasan berikat) is a site licensed by Indonesian Customs where imported and local materials are processed or combined for export, with import duty suspended and import taxes not collected. The status attaches to a licensed site and its operating companies, not to an administrative district, under PMK 131/PMK.04/2018 as amended. An existing building, including a leased one, can qualify if it meets the location, access, boundary and manufacturing-use rules and the company meets the licensing requirements. This guide explains how bonded zones work, how they differ from bonded warehouses, free trade zones and special economic zones, and what a site needs.
The short version:
What it is: a customs-licensed manufacturing site for export-oriented production.
Why it matters: import duty is suspended and import VAT and income tax on imports are not collected on inputs.
Where it can be: inside an industrial estate, or in a zoned cultivation area (kawasan budidaya) on a single plot of at least 10,000 m².
Main limit: sales into the domestic market are normally limited to 50% of the previous year’s export and related sales.
Scale: Indonesian Customs reported 1,512 active bonded zone companies as of August 2025.
What is a bonded zone in Indonesia?
A bonded zone in Indonesia is a bonded storage place where imported goods, and goods from elsewhere in Indonesia, are stored to be processed or combined before export or release into the domestic market. That is the definition in Article 1 of PMK 131/PMK.04/2018. In practice it is a fenced factory site under customs supervision, run by a company that holds a bonded zone licence.
The financial case is in Article 20. Imported inputs enter with import duty suspended, excise exempted and import taxes (VAT, luxury-goods tax and Article 22 income tax) not collected. Local inputs bought from elsewhere in Indonesia can also enter without VAT being collected (Article 21). For a manufacturer that exports most of its output, this keeps cash out of the tax system until goods actually leave for the domestic market.
The scheme is large. Indonesian Customs told Antara in August 2025 that there were 1,512 active bonded zone companies, and that bonded zones accounted for 27.94% of national exports.
What is a bonded warehouse, and how is it different?
A bonded warehouse (gudang berikat) is a bonded storage place for imported goods only. It allows simple activities such as packing, sorting, kitting and cutting, but not manufacturing. The difference from a bonded zone is the activity: a bonded zone processes goods, while a bonded warehouse stores them.
Bonded zone (kawasan berikat)
A bonded zone covers processing and assembly for export, under PMK 131/PMK.04/2018. Goods have no fixed storage limit, but domestic sales are capped.
Bonded warehouse (gudang berikat)
A bonded warehouse in Indonesia is governed by PMK 155/PMK.04/2019. It stores imported goods for up to two years from first entry, supporting industry, duty-free distribution or transit.
Bonded logistics centre (PLB)
A bonded logistics centre (Pusat Logistik Berikat) stores both imported and local goods, with simple activities, for up to three years, under PMK 272/PMK.04/2015 as amended. According to Indonesian Customs, a PLB needs at least one hectare in one plot.
How does a bonded zone compare with a free trade zone and a KEK?
A bonded zone is a licence for one company’s site, while a free trade zone and a special economic zone (KEK) cover whole designated areas. That difference decides where you can locate and how goods move into the rest of Indonesia.
Bonded zone
Granted by: a customs licence.
Covers: one company’s site.
Domestic sales: normally up to 50% of the previous year’s realisation.
Free trade zone
Definition: a free trade zone in Indonesia (KPBPB) is an area legally separated from the customs area, so goods entering it are free of import duty, VAT, luxury-goods tax and excise, under PP 41/2021 as amended.
Where: Batam, Bintan and Karimun, plus Sabang under Law 37/2000. Batam’s status rests on PP 46/2007.
Domestic sales: goods of foreign origin moving to the rest of Indonesia must pay import duty.
More: see our Batam industrial park guide.
Special economic zone (KEK)
Granted by: a government regulation for each zone, run by a zone operator.
Facilities: tax holidays, VAT not collected and customs facilities.
Scale: the national KEK council reported 25 KEKs in March 2026.
Example: Kendal became a KEK under PP 85/2019.
More: our special economic zone guide covers the incentives.
Which sites can qualify for bonded zone status?
A site qualifies for bonded zone status if it is in the right location, has direct container access and a clear boundary, and is used for manufacturing. These are the tests in Articles 4 and 5 of PMK 131/PMK.04/2018.
Location: inside an industrial estate, or in a kawasan budidaya under the regional spatial plan. In a kawasan budidaya the site must be at least 10,000 m² in one contiguous plot. Our KKPR guide explains spatial approval.
Access: container trucks must be able to reach the site directly from a public road.
Boundary: a clear natural or built boundary, usually a fence.
Paperwork: the applicant needs a business licence, VAT registration (PKP), a valid tax-status confirmation, and proof of ownership or control of the site with a location map and layout plan (Articles 7 and 8).
Customs must inspect the site within three working days, then approve or refuse within one hour after the applicant’s presentation (Article 9). Once granted, the licence has no fixed expiry and stays valid until it is revoked.
Can you lease a building for bonded use?
Yes, a leased building can be used for bonded zone status in Indonesia. PMK 131/PMK.04/2018 asks for proof of ownership or control of the site, not ownership alone, so a tenant typically applies using its lease. PMK 131/PMK.04/2018 does not set a minimum lease term. A lease should still match the operator’s investment horizon, because fit-out, fencing and CCTV are costly to move.
Three points matter whether you offer or look for a bonded warehouse for rent:
Estate operators: if the landlord is itself a bonded zone operator (Penyelenggara Kawasan Berikat), the tenant needs its recommendation. The operator must report a tenant that has not extended its lease 30 days before it ends (Article 14).
Data sharing: under PMK 8/2026, Customs shares bonded zone company data with the tax office every six months, including the owner, location, land area and the tenant or user of the site.
Rental tax: rent on the building still carries the 10% final tax explained in our rental income tax guide.
What are occupiers asking for?
Bonded requests are a small but specific part of current demand, and all of them mention export markets. Of the 77 active requirements on the Yardzeal client requirements page as of 5 October 2026:
Four ask for bonded status or a bonded or free trade zone location. Sizes range from about 1,000 m² to 20,000 m².
All four mention export sales. Three name the United States and one is fully export.
Across all 77 requirements, 18 mention export sales and 10 name Batam.
For a site that could meet the bonded rules (estate location, container access, a secure boundary), that export-led demand is the relevant audience. Our warehouse and factory leasing guide covers the wider market.
What limits come with bonded zone status?
Bonded zone status comes with a cap on domestic sales, monitoring duties and the risk of revocation.
Domestic sales cap: sales to the rest of Indonesia are normally limited to 50% of the previous year’s combined exports and sales to other bonded zones, free trade zones and other economic zones (Article 31). Selling more needs approval from the regional Customs office, and exceeding the limit brings penalties such as a lower quota the following year. In November 2025 the Finance Minister announced a plan to cut this to 25%. As of October 2026 we have not found an issued regulation, so check the current rule before planning.
Monitoring: the bonded zone company must run CCTV and an IT inventory system that Customs can access (Article 15, as amended).
Revocation: a licence can be revoked, among other grounds, after 12 months without activity, on bankruptcy or for misuse (Article 45).
Checklist for a site intended for bonded use
The site is inside an industrial estate, or in a kawasan budidaya plot of at least 10,000 m².
Container trucks can reach it directly from a public road.
The boundary is fenced or otherwise clearly marked.
Ownership or lease documents, a location map and a layout plan are ready.
The occupier holds a business licence and VAT registration.
The lease term matches the operator’s plans, with a renewal option.
The occupier’s domestic-sales plan fits within the current limit.
FAQ
Is a bonded zone the same as a free trade zone in Indonesia?
No. A bonded zone is a customs licence for one site inside the Indonesian customs area. A free trade zone such as Batam is a whole area legally separated from the customs area, set by law and government regulation.
Can an existing factory become a bonded zone?
Yes, if it meets the PMK 131/PMK.04/2018 tests: industrial estate or qualifying zoned land, direct container access, a clear boundary and manufacturing use. The operating company also needs a business licence and VAT registration.
Does a bonded zone have to be in an industrial estate?
Not always. It can also sit in a kawasan budidaya under the regional spatial plan, but then the site must be at least 10,000 m² in one contiguous plot.
How long does a bonded zone licence last?
It has no fixed term. It stays valid until it is revoked, for example after 12 months without activity.
What is the biggest risk for a bonded zone tenant?
Losing control of the site. If the lease ends or is not renewed, the operator can no longer meet the ownership-or-control requirement, so long leases with renewal options matter.
Is there an alternative to bonded status for exporters?
Yes. Customs also offers KITE facilities, which relieve import duty and taxes on materials used for export production without a bonded site. Which one fits depends on the scale and the share of domestic sales.
Planning around a bonded zone in Indonesia
A bonded zone in Indonesia suits export-led manufacturing, and the deciding factors are the site’s location, access, boundary and lease terms as much as the building itself. Checking those early saves a rejected application later. To see export-oriented requirements and industrial space across Indonesia, visit Yardzeal.