Industrial estates are available in almost all provinces of Indonesia.
The large scale industrial estates are found in Jakarta, West Java (Bekasi, Karawang, Purwakarta), Banten (Tangerang, Serang), Central Java (Semarang, Cilacap), Yogyakarta (Piyungan), East Java (Surabaya, Gresik, Sidoarjo, Pasuruan, Probolinggo), North Sumatera (Medan), West Sumatera (Padang), Lampung, Riau (Batam Island, Bintan Island), South Sulawesi (Makassar) and East Kalimantan (Bontang) .
Bonded Zone means a zone with particular boundaries within which processing of goods and materials, construction designing, engineering activity, sorting, preliminary inspection, final inspection and packing of imported goods and materials from the other areas within Indonesian Custom Territory (Daerah Pabean Indonesia Lainnya/DPIL) are carried out with purpose mainly for export.
On the importation of goods and/or material for the production process in Bonded Zone certain facilities can be granted such as postponement of import duties, excise free, value added tax (PPN), sales tax on luxury goods and income tax of article 22 shall not be collected Foreign Investment (PMA) as well as Domestic Investment (PMDN) Companies, Limited Companies of Non PMA/PMDN and Cooperatives with legal status are able to obtain approval as an Operator of Bonded Zone and Companies Operating in Bonded Zones.
Operator of Bonded Zone (Penyelenggara Kawasan Berikat/PKB) shall be a limited company, a cooperative with legal status or a foundation which owns, controls, manages and provides facilities and infrastructure in the interest of other parties in Bonded Zone he operates on the basis of an agreement.
Meanwhile, Companies Operating in Bonded Zone (Pengusaha Didalam Kawasan Berikat/PDKB) shall be limited companies or Cooperatives undertaking a processing of goods and materials in a Bonded Zone. Up to February, 2003 there are 15 Operators of Bonded Zone (PKBs) spread in Jakarta (Cakung, Marunda and Tanjung Priok operated by government), Bogor, Purwakarta, Karawang, Semarang, Pasuruan, Medan, Mojokerto, Bintan Island, Aceh, and Batam Island and 426 Companies Operating in Bonded Zone (PDKBs).