Regulation Watch · Business Licensing · Indonesia, specifically the Batam Free Trade and Free Port Zone (KPBPB Batam), for businesses importing goods into Batam or conducting activities that require forestry-related basic approvals. The separate rule for other Indonesian free-trade and free-port zones remains with their Zone Councils.
Batam FTZ Gains New Import and Forestry Approval Route
PP 23/2026 gives the Head of BP Batam authority to determine exceptions from specified import restrictions after considering the Zone Council and adds three forestry approvals to Batam's basic business-licensing requirements.
- Published
- Established and promulgated in Jakarta on 12 May 2026 as State Gazette No. 53 of 2026 and Supplement to the State Gazette No. 7177.
- Effective
- 12 May 2026. PP 23/2026 states that it took effect on the date of promulgation and provides no general transition period.
- Added to Watch
- 7 October 2026
Who is affected
PT PMA and PT PMDN manufacturers, importers, exporters, industrial tenants, logistics operators, developers and other businesses operating or investing in KPBPB Batam; their foreign and domestic shareholders and directors; customs brokers; and licensing, procurement, trade-compliance, environmental, land, forestry and project teams supporting Batam operations.
Practical impact
For goods imported from outside Indonesia into KPBPB Batam, the existing restrictions for consumer protection, health, security and environmental purposes may now be excepted through a determination by the Head of BP Batam after obtaining the Zone Council's consideration. The exception is not automatic and does not disapply prohibitions or the separate restrictions governing movements out of Batam. PP 23/2026 also replaces Batam's basic-requirement schedule by adding Approval of a Forest-Utilization Commitment, In-Principle Approval for Environmental-Service Utilization in nature reserves, nature-conservation areas and game parks, and Approval for Release of Forest Area. These sit alongside marine spatial-utilization conformity, environmental approval and approval to use a forest area. The amended schedule continues to cover the listed business sectors, including industry, trade, public works, health, tourism, investment and environment.
The government established and promulgated PP 23/2026 on 12 May 2026 and made it effective on the same date. The regulation makes a focused second amendment to PP 41/2021 on Free Trade and Free Port Zones, as previously amended by PP 25/2025. Its operative changes apply specifically to Batam's import-control authority and basic business-licensing requirements.
Goods brought from outside Indonesia into a free-trade zone remain subject to restrictions imposed for consumer protection, health, security and environmental purposes. For Batam, the Head of BP Batam may now determine an exception after obtaining the Zone Council's consideration. In other free-trade zones, the Zone Council remains the authority. The amendment does not create a blanket exemption from prohibitions, restrictions on goods leaving Batam or the technical and customs documents governing a particular shipment.
The regulation also replaces Appendix II for Batam. Three forestry approvals are added to the basic requirements: Approval of a Forest-Utilization Commitment; In-Principle Approval for Environmental-Service Utilization in nature reserves, nature-conservation areas and game parks; and Approval for Release of Forest Area. The schedule also retains marine spatial-utilization conformity, environmental approval and approval to use a forest area.
The official explanation links the change to faster, integrated and accountable goods-movement and forestry licensing in Batam. Operationally, investors still need a shipment- and project-specific check. The authority to grant an exception does not mean an importer can omit HS-code classification, the BP Batam determination, technical recommendations, PPFTZ and customs documentation or any applicable environmental and forestry approval.
Affected businesses should reconcile OSS, BP Batam or IBOSS and customs records before committing an import or project milestone. Manufacturers and developers should also review land and forest overlays early, because the added forestry approvals can affect site selection, construction timing, financing conditions and the validity of the wider business-licensing package.
Late discovery: PP 23/2026 was promulgated in May but was not previously recorded in the Regulation Watch ledger. The updated official source index and BP Batam implementation registry now make the change identifiable as a distinct, material investor requirement, so this article records the original dates without presenting it as a newly issued regulation.
Required action
- Classify each planned import by HS code, origin, end use and applicable prohibition or restriction, and identify whether the control is imposed for consumer protection, health, security or environmental purposes before seeking an exception.
- Do not treat Batam FTZ status as an automatic exemption. Obtain and retain the relevant BP Batam determination and supporting Zone Council consideration before relying on an exception to an import restriction.
- Align the NIB, BP Batam business licence, customs registration, PPFTZ declaration, invoice, packing list, technical permit and exemption evidence so the same importer, goods, quantities and approved use appear throughout the file.
- For projects involving forest areas or environmental services, map the site and activity against the amended basic-requirement schedule and determine whether a forest-utilization commitment, environmental-service in-principle approval, forest-area release approval, PPKH, environmental approval or marine spatial approval is required.
- Recheck pending or amended Batam projects and intragroup supply arrangements that were structured under the previous approval map, particularly where the imported goods, forest footprint, land use, capacity or business activity has changed after 12 May 2026.
- Update procurement lead times, construction schedules and customer contracts for the possibility of technical review, customs hold or additional forestry approval, and assign one owner to reconcile OSS, IBOSS or BP Batam and customs status.
- Keep the official PP 23/2026 text, approvals, determinations, technical recommendations, spatial and environmental evidence, customs filings and contracts together for inspection and audit.