Industrial Estates Opportunity

Industrial Estates

Indonesia Industrial Estates plays a strategic role in driving national economic growth through the provision of various incentives and facilities that attract investors.

Tax Holiday

Implemented in accordance with the general provisions governing Tax Holidays, applicable to 18 designated pioneer industries. Exemption of Corporate Income Tax ranging from 50% to 100% for a period of 5 to 20 years for investments in pioneer industries.

Tax Allowance

Implemented in accordance with the general provisions governing Tax Allowances, applicable to specific sectors and designated locations. Reduction of Corporate Income Tax by 30% of the investment value over a period of 5 years for investments in specific business sectors and/or designated regions.

Value Added Tax (VAT) and Luxury Goods Sales Tax (LGST)

Subject to the general provisions in force.

Import Duty

Subject to the prevailing general provisions.

Master List

Determined and approved through the One-Stop Service (OSS) of the Indonesia Investment Coordinating Board (BKPM).

Excise

Implemented in accordance with the applicable excise regulations.

Goods Traffic

Provisions concerning import and export prohibitions and restrictions are duly enforced.

Ease of Business Licensing in Industrial Estates

Within Industrial Estates

Approval for conformity of spatial utilization activities for Business Entities and Business Actors located within Industrial Estates is granted through the OSS-RBA system without the need for an assessment stage of the proposed spatial utilization document (automatic PKKPR).
Business licensing issuance is completed within 2 hours.
Industrial companies operating within Industrial Estates must prepare a Detailed Environmental Management and Monitoring Plan (RKL-RPL Rinci) based on the Estate’s RKL-RPL.

Outside Industrial Estates

In regions where a Detailed Spatial Plan (RDTR) has been established, business actors may utilize the automatic KKKPR mechanism. However, if the region has not yet established an RDTR, business actors may apply for PKKPR based on the results of spatial planning studies, recommendations from the Spatial Planning Forum, and relevant technical considerations (Pertek).
Business licensing is issued under a risk-based approach in accordance with the Service Level Agreement (SLA) and Government Regulation No. 5 of 2021.
Business actors are required to obtain environmental approvals (SPPL, UKL-UPL, or AMDAL) according to their respective risk categories.