Realization of KITE Incentives as of March 2025 Up 11.6% Year-on-Year
JAKARTA. As of the end of March 2025, the government has provided Import Facility for Export Purposes (KITE) incentives amounting to IDR 8.8 trillion, an increase of 11.6% compared to the same period in 2024 (year on year).
Through the KITE facility, manufacturing companies that import goods and materials for export purposes are entitled to a refund of import duties previously paid.
Quoting kontan.co.id, the growth in incentive disbursement is in line with export and import activities in bonded zones. Export value was recorded at USD 25.2 billion, an increase of 11.5%, while imports reached USD 7.9 billion, up 10.2%.
The Directorate General of Customs and Excise (DGCE) stated that the provision of KITE incentives is indeed intended to stimulate industries within bonded zones.
KITE Incentive Regulations
The provision of the Import Facility for Export Purposes (KITE) is regulated under Minister of Finance Regulation (PMK) Number 145/PMK.04/2022, which was issued and has been in effect since October 18, 2022.
According to the regulation, import duties (Bea Masuk) that can be refunded to KITE-registered businesses include:
a. Import duties are already paid in the customs declaration for imports or in the customs declaration for the entry of goods and materials.
b. Import duties paid as a result of tariff and customs value assessments made by Customs Officers that lead to additional import duty liabilities in the customs declaration for imports or the declaration for the entry of goods and materials; and/or
c. Additional Import Duties.
READ: Additional Tax Incentives for the Recipient of KITE Facilities Revoked
KITE Facility Eligibility Criteria
The Import Facility for Export Purposes (KITE) is only granted to businesses that meet the following criteria:
First, engage in the manufacturing sector, specifically in activities involving processing, assembly, or installation.
Second, possess proof of ownership or control over the production site, with a minimum usage period of three years.
Third, maintain an adequate internal control system to ensure compliance and accountability.
Fourth, support their production processes with a computerized inventory management system.
And the last criteria, install a closed-circuit television (CCTV) system, which must be accessible in real time by the Directorate General of Customs and Excise (DGCE). (ASP/KEN)
