Government Regulation No. 12 of 2020 on Facilities and Eases at Special Economic Zones (KEK)
Peraturan Pemerintah Nomor 12 Tahun 2020 tentang Fasilitas dan Kemudahan di Kawasan Ekonomi Khusus
What this regulation does
Plain-English summary of the regulation's substance and how it affects PT PMA operations.
PP 12/2020 implements UU 39/2009 and sets out the fiscal and administrative facilities available to operators within Indonesia's 22 Special Economic Zones (KEK / Kawasan Ekonomi Khusus). Headline benefits: import duty exemption on capital goods and raw materials, PPN and PPnBM exemption, accelerated import clearance via the KEK customs system, eligibility for an enhanced Tax Holiday under PMK 237/PMK.010/2020 (more generous than PMK 130/2020 for non-KEK investments), and one-stop licensing through the KEK Administrator. Active KEK clusters include Mandalika (Lombok, tourism), Sei Mangkei (North Sumatra, palm-oil downstream), Galang Batang (Bintan, alumina/aluminium), Tanjung Lesung (Banten, tourism), Kendal (Central Java, manufacturing), Likupang (North Sulawesi, tourism), Nongsa (Batam, digital), Singhasari (East Java, tourism/digital), and others. Each KEK has a designated Administrator (BPKEK) acting as a one-stop service for licensing within the zone. Domestic-sales caps apply on goods released from the KEK to mainland Indonesia.
Key provisions
The articles and operational points most commonly referenced in practice.
- 01
Import duty + PPN exemption
Capital goods and raw materials imported directly into a KEK are exempt from import duty, PPN, and PPnBM at entry.
- 02
Enhanced Tax Holiday
Eligible KEK operators may receive Tax Holiday under PMK 237/2020 — generally more generous duration than the standard PMK 130/2020 regime.
- 03
One-stop licensing
Each KEK has a designated Administrator (BPKEK) authorised to issue most operational licenses within the zone, replacing the multi-ministry process otherwise required.
- 04
22 active KEK clusters
Includes Mandalika, Sei Mangkei, Galang Batang, Tanjung Lesung, Kendal, Likupang, Nongsa, Singhasari, and others — each with a designated industry focus.
KBLIs affected
Indonesian business classifications explicitly referenced or governed by this regulation.
5 KBLIs referenced by PP 12/2020 (KEK)
Click a code to see the full KBLI profile — risk, foreign-ownership, licensing, and setup cost.
- 10491governs this activity
Palm oil refining — Sei Mangkei KEK downstream
- 24109governs this activity
Basic metals — Galang Batang KEK alumina/aluminium downstream
- 55101governs this activity
Hotels — eligible for KEK fiscal facilities (Mandalika, Tanjung Lesung, Likupang)
- 62019governs this activity
Software development — Singhasari KEK digital
- 63111governs this activity
Data hosting / cloud — Nongsa Digital Park KEK
Official text
For compliance and dispute work, cite the original Indonesian text directly.
Peraturan Pemerintah Nomor 12 Tahun 2020 tentang Fasilitas dan Kemudahan di Kawasan Ekonomi Khusus
tentang Fasilitas dan Kemudahan di Kawasan Ekonomi Khusus
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