Government Regulation No. 41 of 2021 on the Operation of Free Trade Zones and Free Ports (FTZ/KPBPB)
Peraturan Pemerintah Nomor 41 Tahun 2021 tentang Penyelenggaraan Kawasan Perdagangan Bebas dan Pelabuhan Bebas
What this regulation does
Plain-English summary of the regulation's substance and how it affects PT PMA operations.
PP 41/2021 governs Indonesia's three Free Trade Zones (Kawasan Perdagangan Bebas dan Pelabuhan Bebas / KPBPB) — Batam, Bintan, and Karimun. Goods imported directly into an FTZ from outside Indonesia enter free of import duty, PPN, PPnBM, and PPh 22; the customs path is the FTZ01 entry form. Goods are taxed only when released to mainland Indonesia (FTZ01 release-to-TLDDP form). Each FTZ is administered by its respective Authority (BP Batam, BP Bintan, BP Karimun) which acts as the licensing one-stop. Lartas (restricted-goods) licensing under PMK 141/2020 still applies — FTZ status exempts duty but not regulatory permits. Companies operating within the FTZ benefit from streamlined customs, dedicated free-port access, and a parallel Indonesia Batam System (IBS) for declarations. Eligible companies include manufacturers (especially export-oriented electronics and shipbuilding), oil-and-gas service providers, logistics operators, and tech-content companies in Batam's digital corridor.
Key provisions
The articles and operational points most commonly referenced in practice.
- 01
Duty-free entry
Direct imports into the FTZ from outside Indonesia are exempt from import duty, PPN, PPnBM, and PPh 22.
- 02
Duty triggers on mainland release
When goods exit the FTZ to mainland Indonesia (TLDDP), import duty and tax are calculated and become payable.
- 03
Lartas still applies
FTZ status exempts duty but not regulatory permits — restricted-goods licensing under PMK 141/2020 applies as it would for any other import.
- 04
BP Batam / BP Bintan / BP Karimun
Each FTZ has a designated Authority acting as the licensing one-stop within the zone.
KBLIs affected
Indonesian business classifications explicitly referenced or governed by this regulation.
4 KBLIs referenced by PP 41/2021 (FTZ)
Click a code to see the full KBLI profile — risk, foreign-ownership, licensing, and setup cost.
Official text
For compliance and dispute work, cite the original Indonesian text directly.
Peraturan Pemerintah Nomor 41 Tahun 2021 tentang Penyelenggaraan Kawasan Perdagangan Bebas dan Pelabuhan Bebas
tentang Penyelenggaraan Kawasan Perdagangan Bebas dan Pelabuhan Bebas
Need help complying with PP 41/2021 (FTZ)?
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