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Administrative Sanctions Await Those Failing to Register Warehouses in Indonesia

On June 13, 2019, The Ministry of Trade in issued Regulation of the Government 33/2019 on the Imposition of Administrative Sanctions upon Warehouse Owners who fail to Register Their Warehouses in Indonesia. Regulation 33/2019 serves as an implementing regulation of the Trade Law, also known as Law No. 7/2014.

Under the Trade Law, it is compulsory for all warehouse owners to register their warehouses – warehouses failing to comply with this obligation will have to face administrative sanctions. Regulation 33/2019 will become effective on November 6, 2019.

Below are the specific matters included under the Regulation 33/2019 that will be effective very soon:

Warehouse categories that are under the registration requirements
Administrative sanctions and their details

Warehouse Categories under the Registration Requirements

In accordance with the Trade Law in Indonesia, business owners are required to register their warehouses based on their categories. These categories are decided based on their storage capacities and areas. In Regulation 33/2019, there are four types of warehouse categories:

Class A Closed Warehouses

  • Area: 100 m2 – 1,000 m2
  • Storage capacity: 360m3 – 3,600 m3

Class B Closed Warehouses

  • Area: 1,000 m2 – 2,500 m2
  • Storage capacity: > 3,600m3 – 9,000 m3

Class C Closed Warehouses

  • Area: > 2,500m2
  • Storage capacity: > 9,000m3

Class D Closed Warehouses

  • Area: No particular specifications – however this type of warehouse must take the form of a tank or silo
  • Storage capacity: at least 762m3 or 500 tons

Open Warehouses

  • Area: > 1,000m2
  • Storage capacity: Not specified

Things that business owners need to take note of:

  • Business owners must register their warehouses with the relevant mayors, regents or governor. All such registrations are to be carried out online.
  • Owners of warehouses who have possessed an Industrial Business License (Izin Usaha Industri – IUI) are allowed to use this license as a Warehouse Registration Certificate (Tanda Daftar Gudang – TDG). This permission must follow the provisions under their relevant laws and regulations.

Details of Administrative Sanctions

The Trade Law specifies that warehouse owners will have to face administrative sanctions if they fail to register their warehouses. The administrative sanctions imposed are in the form of warehouse temporary closure in Indonesia and/or fines of up to IDR 2 billion.

Furthermore, more applicable sanctions are added under Regulation 33/2019, and the details are stated in the following:

Written Reprimands

  • This can be issued to warehouse owners for a total of two times. For each reprimand, the duration in between is 14 days

Temporary Closures

  • Temporary closures for 30 days and are imposed after the second written reprimand has expired. The warehouse owners in this case have not acquired a TDG yet
  • Warehouse owners are given 30 days to obtain a TDG upon the impose of this sanction
  • Warehouse owners are allowed to release goods from their warehouse during this sanction period; however they are not permitted to receive any goods that are new into the warehouses

Administrative Fines

  • Warehouse owners must pay fines if they fail to get a TDG after the temporary closure has expired
  • The fines are subject to the total number of non-compliance days committed by the warehouse owners. The non-compliance days are calculated from the 31st day of the temporary closure until the day the TDG is obtained
  • The fine amounts are different depending on the warehouse categories

warehouse indonesia registration

Do not Wait to Register Your Warehouse in Indonesia

Registering your warehouse in Indonesia is an important step to ensure your business can run smoothly. Take this step and you can avoid those unnecessary sanctions.

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