BC 2.3 covers the entry of imported raw materials, components, or semi-finished goods into a Tempat Penimbunan Berikat (TPB) — collectively known as Kawasan Berikat (KB). A KB is a designated manufacturing zone where companies produce goods primarily for export, with imported inputs entering duty- and tax-free.
Major Indonesian KB clusters: MM2100 and Cikarang industrial estates (West Java), Karawang International Industrial City, Krakatau Industrial Estate Cilegon, KIIC and Suryacipta Karawang. Eligible operators include foreign-owned electronics, garment, automotive parts, and food-processing manufacturers exporting at least 50% of output (under PMK 65/PMK.04/2021 thresholds).
Once raw materials enter under BC 2.3, manufacturers transform them into finished goods. Output destined for export leaves under BC 3.0 (PEB) with no duty. Output sold into the Indonesian domestic market exits under BC 2.5 with import duty, PPN, and PPh 22 calculated on the value of the imported inputs (not the finished good).