Indonesia Tightens Bonded Zone Regulations to Boost Exports

New Domestic Sales Quota Restrictions

The Directorate General of Customs and Excise under the Ministry of Finance is set to implement new regulations that will significantly reduce the domestic sales quota for companies operating in bonded zones. The current maximum quota of 50% will be cut to 25%, marking a substantial shift in policy. This change is designed to restore the primary function of bonded zones as export-oriented facilities.

Rationale Behind the Policy Change

Director General of Customs and Excise, Djaka Budhi Utama, explained that the reduction is necessary to maintain the original purpose of bonded zones, which is to support national export growth. The current quota system has allowed companies in these zones to sell up to half of their production domestically, which has diluted their export focus. By lowering the domestic sales allowance, the government aims to enhance export performance and maximize the benefits of the bonded zone facilities.

Impact on Businesses Operating in Bonded Zones

This regulatory change is expected to have significant implications for companies currently operating within Indonesia's bonded zones. Businesses will need to adjust their production and sales strategies to comply with the new quota. While this may pose challenges for some companies that have relied heavily on domestic sales, it also presents an opportunity for others to expand their export capabilities and tap into global markets more effectively.

Implementation and Future Outlook

The new regulation was announced during a working meeting with Commission XI of the DPR RI on November 24, 2025. The implementation timeline for the new rules has not been explicitly stated, but companies are advised to prepare for the change to avoid potential disruptions to their operations. As Indonesia continues to refine its trade policies, this move is seen as part of a broader effort to strengthen the country's export sector and improve its global trade competitiveness.