Export Orientation Quota of Bonded Zones Amended

The Ministry of Finance is set to finalize draft regulation of the Minister of Finance on amendment to Regulation of the Minister of Finance (“ Permenkeu ”) No. 131/PMK.04/2018 on Bonded Zones, as previously amended by Permenkeu No. 65/PMK.04/2021 (collectively referred to as “ Permenkeu 131/2018 ”). This regulation will reduce the quota of production from bonded zones allocated to the domestic market from the original 50% to only 25%.

“It is still being finalized, but it is targeted to be completed by the end of this year and implemented next year,” said Nirwala Dwi Heryanto, Director of Communication and Service User Guidance at the Directorate General of Customs and Excise (“ DJBC ”), in a statement to Hukumonline.

The revision is based on the evaluation of the implementation of Permenkeu No. 65/PMK.04/2021 . If the limit on the portion of production distributed to the domestic market or other locations within the customs area (Tempat Lain Dalam Daerah Pabean/TLDDP) is reduced, producers will have a larger quota to focus on exports. Consequently, this could restore the intended function of bonded zones, which is specifically designed to boost exports.

“Because the purpose of granting bonded zones is to promote exports with a lower cost structure,” he added.