A South Korean oil & gas contractor won an 8-month offshore platform maintenance project in Batam waters. They needed to bring in specialized equipment worth IDR 3.5 billion that would be shipped back to Korea once the project was complete. Since the equipment would not stay permanently in Indonesia, their legal team applied for the OB 23 (Temporary Import) facility and issued a custom bond as a guarantee to Customs — instead of paying the full import duty upfront, which could have run into hundreds of millions of rupiah.
The project finished on schedule, the equipment was re-exported with complete export declaration documents, and the custom bond was closed with no claim ever triggered.
Who Typically Needs OB 23 in Batam?
As a high-traffic Free Trade Zone, several types of needs most commonly use this facility in Batam. For a broader look at other customs guarantee types, see our Custom Bond Batam page.
Exhibition & Booth Equipment
Display units, demo machines, and booth fixtures brought in specifically for trade or industry exhibitions in Batam.
Oil & Gas / Shipyard Project Equipment
Heavy equipment or specialized units owned by foreign contractors, brought in temporarily for offshore or shipyard project work.
Foreign Expert Work Equipment
Technical equipment brought in by foreign experts or technicians for machine installation, servicing, or training at Batam factories.
Product Samples for Testing
Goods or raw material samples imported temporarily for quality testing or research before a sale contract is finalized.
Event & Production Equipment
Filming equipment, sound systems, or gear for international events held temporarily in Batam.
Reusable Packaging & Containers
Containers, pallets, or special packaging used repeatedly for cross-border shipping that must be returned.
Common Mistakes That Cause OB 23 Problems — and How to Avoid Them
Most OB 23 penalties or rejections can actually be avoided with the right preparation.
Filing the OB 23 extension too late
If the temporary import period is about to expire but goods cannot yet be re-exported, the extension must be filed before — not after — the deadline.
Goods not matching the SKEP
The type, quantity, and specification of goods realized must exactly match what is stated in the Customs facility decree.
Guarantee value lower than required
The custom bond issued must fully cover the potential import duty and VAT exempted, not a rough estimate.
SPGR not notarized
An Indemnity Agreement that is not notarized can lead to application rejection or claims issues down the line.
File the extension 14 days before the deadline
Leave a buffer for Customs' administrative process, which can take several business days.
Keep the re-export PEB document safe
The export declaration is the primary proof that the OB 23 obligation has been fulfilled and the custom bond can be closed.
Custom Bond Cost Estimate for OB 23
Cost is calculated from the guarantee value (potential import duty + VAT exempted), not from the value of the goods themselves. For a full breakdown of other customs facility types, visit our Custom Bond Batam page.
| Need | Estimated Custom Bond Cost | Guarantee Tenor |
|---|---|---|
| Exhibition equipment IDR 300 million (2 weeks) | IDR 2.5 – 5 million | 1 month (+buffer) |
| Oil & gas project equipment IDR 2 billion (6 months) | IDR 16 – 36 million | 6–8 months |
| Foreign expert equipment IDR 150 million (1 month) | IDR 1.2 – 2.7 million | 2 months |
| Product samples IDR 50 million (3 months) | IDR 400 thousand – 900 thousand | 4 months |
* General illustration. Actual cost is determined after underwriting and depends on the actual guarantee value required by Customs.
FAQ
Frequently Asked Questions
What is OB 23 and why is it called that?+
What is the maximum duration for OB 23?+
Is OB 23 the same as KITE?+
What happens if OB 23 goods are damaged and cannot be re-exported?+
Can a foreign company without a legal entity in Indonesia apply for OB 23 directly?+
Related Articles & Pages
This article is based on common practice in Indonesia's customs guarantee market and our experience assisting companies in Batam. Technical requirements may change with updated Customs regulations. For specific needs, please consult directly with our team.