What Foreign Companies Should Know About Logistics Compliance in Indonesia (2025)

Indonesia’s logistics sector is rapidly evolving, offering vast opportunities for foreign investors. However, navigating the complex regulatory landscape is crucial for successful operations. This guide provides an overview of key compliance considerations for foreign companies entering Indonesia’s logistics market in 2025.​

1. Understanding the Regulatory Framework

Indonesia’s logistics regulations are governed by multiple agencies, including the Ministry of Trade, the Directorate General of Customs and Excise (DGCE), and the Investment Coordinating Board (BKPM). Compliance with these regulations is essential to avoid operational disruptions and legal penalties.​3E CPA+1Trade.gov+1

2. Import and Export Requirements

a. Business Identification Number (NIB):
Foreign companies must obtain an NIB through the Online Single Submission (OSS) system to engage in import or export activities. The NIB serves as a unified business license, streamlining the registration process.​3E CPA+3ASEAN Briefing+3Trade.gov+3

b. Import Documentation:
The Indonesian government mandates comprehensive documentation for imports, including:​Trade.gov

• Pro-forma invoice

• Commercial invoice

• Certificate of origin

• Bill of lading

• Packing list

• Insurance certificate​3E CPA+10Trade.gov+10LinkedIn+10

Importers also need an import license and importer identification number. ​Permitindo+5Trade.gov+5InCorp Indonesia+5

3. Cabotage and Shipping Regulations

Indonesia enforces strict cabotage laws, prohibiting foreign-flagged vessels from operating domestic shipping services. This policy covers all maritime activities within the country’s territorial waters. ​ABNR – Counsellors at Law+1Global Practice Guides+1

Recent amendments to the shipping law have increased the minimum size requirement for foreign-owned shipping joint venture companies (JVCs) from 5,000 Gross Tonnage (GT) to 50,000 GT per vessel. ​Assegaf Hamzah & Partners

4. Licensing for Professional Services

Foreign-owned companies aiming to operate in Indonesia must submit an Investment Plan and obtain approval from the BKPM. The Negative Investment List (DNI) outlines sectors that are open, closed, or conditionally open to foreign investment. ​cptcorporate+2Trade.gov+2ENTERSLICE PRIVATE LIMITED+2

5. Import Restrictions and Compliance

Indonesia’s import trade system, known as Tata Niaga Impor, imposes strict regulations to protect domestic industries and ensure consumer safety. Non-compliance can lead to severe penalties, including fines, license revocation, and destruction of goods. ​Permitindo

6. Taxation and Financial Compliance

Foreign investors must adhere to Indonesia’s taxation laws, including registering for a Taxpayer Identification Number (NPWP) and complying with corporate tax obligations. Regular audits and accurate financial reporting are essential to maintain compliance. ​3E CPA+1Trade.gov+1ASEAN Briefing

7. Environmental and Waste Management Regulations

Companies must comply with environmental standards (baku mutu) and are responsible for managing waste generated from their operations. Engaging licensed waste management services or obtaining the necessary licenses for in-house waste management is mandatory. ​Westlaw Content

8. Digital Integration and the National Logistics Ecosystem (NLE)

Indonesia is modernizing its logistics sector through the National Logistics Ecosystem (NLE), aiming to digitalize and streamline port operations. This initiative enhances transparency and reduces inefficiencies, presenting significant opportunities for foreign investors. ​LinkedIn

9. Best Practices for Compliance

• Engage Local Expertise: Partner with local legal and logistics experts to navigate regulatory complexities.​cptcorporate

• Stay Informed: Regularly monitor updates from relevant government agencies to remain compliant with evolving regulations.​

• Implement Robust Compliance Programs: Establish internal controls and training programs to ensure adherence to local laws and standards.​

Conclusion

Operating in Indonesia’s logistics sector offers substantial opportunities for foreign companies. However, understanding and complying with the country’s regulatory framework is crucial. By proactively addressing compliance requirements, foreign investors can establish successful and sustainable operations in Indonesia.​ENTERSLICE PRIVATE LIMITED

For more detailed information on Indonesia’s logistics regulations, visit Indonesia-Agent.com.