Regulation of the Minister of Industry Number 3 of 2026 Regulates the Issuance of Technical Considerations for Import Duty Exemption Facilities

Introduction

On February 25, 2026, the Minister of Industry (“MOI”) issued Regulation of the Minister of Industry Number 3 of 2026 on Procedures for the Issuance of Technical Considerations to Support the Provision of Import Duty Exemption Facilities (“MOI Regulation 3/2026”). MOI Regulation 3/2026 governs the procedures for businesses to obtain Technical Considerations electronically through the National Industrial Information System (Sistem Informasi Industri Nasional, “SIINas”) as one of the requirements to obtain import duty exemption facilities for the import of industrial machinery, goods, and materials.

MOI Regulation 3/2026 aims to enhance investment, development, and the competitiveness of domestic industries while strengthening the effectiveness and legal certainty of public services within the Ministry of Industry. The import duty exemption facilities are granted selectively to industries requiring machinery, goods, or materials that cannot yet be fulfilled by domestic production.

Key Provisions

Scope of Facilities and Requirements

Import duty exemption facilities cover the import of machinery (excluding spare parts) as well as goods and materials for industrial Construction or Development, including scientific research and development activities. Article 2 paragraph (2) stipulates that the facilities are granted if the machinery or goods are not yet produced domestically, are already produced domestically but do not yet meet the required specifications, or are insufficient in quantity to meet industrial needs. Under these conditions, businesses must obtain Technical Considerations issued by the Director General of Industrial Development (Direktur Jenderal Pembina Industri).

Application Procedures and Completeness of Business Profile

Article 3 requires businesses to submit applications electronically through SIINas by completing the company profile data. The data includes:

1. company identity (name, status, head office address, head office telephone/fax number, and company e-mail);

2. project location along with its telephone/fax number;

3. project investment status (Construction or Development);

4. contact person;

5. business field (5-digit KBLI) and product scope;

6. business activity identification number;

7. details of investment value (excluding land and buildings) and the number of workers, both for the company's current condition and for the project proposed to obtain the facilities; and

8. specifically for applications for import duty exemption facilities on the import of goods and materials for industrial Construction or Development, it is mandatory to fill in the realization of local raw material absorption for the last 3 (three) years and/or the plan for local raw material absorption for 3 (three) years.

Details of Import Plan and Document Requirements

Businesses must include details of the import plan which cover the name of the goods, technical specifications, tariff post or Harmonized System (HS), quantity and unit, price in United States dollars, country of origin, and port of destination. Furthermore, businesses are also required to upload supporting documents according to the application category as follows:

1. Machinery Import Facilities

• Business Identification Number (Nomor Induk Berusaha, “NIB”);

• Taxpayer Identification Number (Nomor Pokok Wajib Pajak, “NPWP”);

• pictures of the machinery along with technical explanations regarding the function and capacity of the machinery;

• cost and benefit analysis;

• Technical Data Sheet; and

• a stamped statement letter signed by the company's leadership stating that the machinery is in new condition.

2. Goods and Materials Facilities

• NIB;

• NPWP;

• pictures, technical explanations, and intended use of the goods and/or materials;

• Certificate of Analysis (COA);

• Safety Data Sheet (SDS);

• cost and benefit analysis;

• capacity of old machinery and/or capacity of new machinery;

• production process flow chart and production plan for three years;

• composition and conversion of raw material usage;

• statement letter on the value of the use of domestically made production machinery (if any);

• proof of machinery purchase by attaching invoices and/or photos of installed machinery; and

• production capacity calculation data.

3. Research Purposes

• NIB;

• NPWP;

• pictures and technical explanations regarding the function of the goods;

• description of the scientific research and development activities carried out and their benefits in advancing science; and

• cooperation agreement documents if the research activities involve other parties.

Verification Process and Critical Deadlines

The Director General of Industrial Development verifies the application within a maximum of 5 working days for industrial facilities and 3 working days for research facilities. Article 4 paragraph (4) stipulates that if the documents are incomplete or non-compliant, the Director General of Industrial Development returns the application to the businesses for correction within a maximum of 5 working days. If the businesses do not make corrections within this time limit, the system will automatically reject the application.

Technical Consideration Decisions

Article 5 stipulates that the Director General of Industrial Development issues the verification results in the form of Technical Considerations or a rejection letter within a maximum of 4 working days for industrial facilities and 2 working days for research facilities. The Technical Consideration document contains at least the complete identity of the company, investment value, number of workers, list of approved machinery or goods, validity period, and details of the obligations and responsibilities of the businesses. If SIINas cannot be accessed, businesses may submit applications manually.

Cost and Benefit Analysis Format

Based on the Annex of MOI Regulation 3/2026, businesses must prepare a Cost and Benefit Analysis containing the reasons for applying for the facilities as well as investment data detailing the total investment value, import value, and total import duty value. The analysis also includes a benefit matrix showing the impact on the company, such as an increase in production capacity, the addition of product types, and cost savings, as well as the impact on the government, including additional investment, labor absorption, export foreign exchange earnings, and projected payments of import Value Added Tax, import Income Tax, sales Value Added Tax, Article 21 Income Tax, and Article 23 Income Tax per year.

Validity Period and Amendment of Technical Considerations

Technical Considerations are valid for 2 years for industrial facilities and 1 year for research facilities. Article 7 paragraph (2) stipulates that if the validity period expires but the import duty exemption facilities have been issued by the competent authority, businesses do not need to apply for new Technical Considerations for the extension of import time. If there are changes to data, such as company name, address, investment value, tariff post, specifications, or quantity and unit of goods, businesses may apply for amendments through SIINas, provided that the import of the goods has not been realized. Amendment applications must attach the previous Technical Considerations, the reasons for the amendment, and an import plan amendment matrix signed by the company's leadership. The amended Technical Considerations become an integral part of the previous Technical Considerations and follow the validity period of the initial document.

Periodic Reporting Obligations and Evaluation

Article 12 requires businesses to submit progress reports on import realization every 6 months through SIINas during the facility utilization period. The report contains the number and date of the Technical Considerations, the number and date of the Import Declaration (Pemberitahuan Impor Barang, “PIB”), goods specifications, tariff post or Harmonized System (HS), quantity and unit, country of origin, port of destination, and the number and date of the Decree of the Minister of Finance. The Director General of Industrial Development conducts periodic monitoring of the implementation of the facilities and may form a technical team to evaluate company compliance.

Transitional Provisions

Article 15 states that all Technical Considerations issued prior to the enactment of MOI Regulation 3/2026 remain valid and applicable for a maximum of 2 years since this Ministerial Regulation took effect. Applications that have been submitted and are still under review are processed based on the provisions set forth in MOI Regulation 3/2026. In addition, Article 13 stipulates administrative sanctions for businesses failing to submit import realization reports in the form of being unable to submit applications for the issuance of Technical Considerations in the subsequent period. Based on Article 16, MOI Regulation 3/2026 was promulgated on March 4, 2026, and took effect 30 days after its date of promulgation, namely on April 3, 2026.

Closing

MOI Regulation 3/2026 governs the application procedures for import duty exemption facilities for the import of machinery as well as materials and auxiliary materials through the SIINas system. In its implementation, businesses must ensure that all technical requirement documents have been completely prepared from the application stage, including production capacity data, photos of installed machinery, and a cost and benefit analysis containing projections of tax payments. From a compliance perspective, businesses also need to pay attention to the obligation to submit import realization reports every six months containing details of the Import Declaration, as well as the deadline for document correction of five working days if there are deficiencies in the application. Furthermore, Technical Considerations issued prior to the enactment of MOI Regulation 3/2026 remain valid for a maximum of two years since this Ministerial Regulation took effect, thus requiring businesses to adjust their administrative management and facility utilization planning. Therefore, the utilization of these facilities heavily relies on accuracy in fulfilling the requirements and the discipline of periodic reporting to avoid administrative sanctions in the form of being unable to submit applications for the issuance of Technical Considerations in the subsequent period.