Proforma Invoice Template for Indonesia

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What is a Proforma Invoice?

A Proforma Invoice is a critical trade document in Indonesian business transactions, particularly in international trade. This document serves as a preliminary invoice and quotation, issued before the actual delivery of goods or services. Under Indonesian law, particularly Law No. 7 of 2014 on Trade and related regulations, a Proforma Invoice must contain specific elements including detailed seller and buyer information, precise product descriptions, pricing, and terms of trade. While not a final invoice, it plays a crucial role in facilitating customs clearance, securing letters of credit, and initiating international trade transactions. The document must comply with Indonesian tax regulations and may be required for various trade-related procedures including import permits and foreign exchange transactions.

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Reviewed by

Swetha Meenal

Legal Engineer, GenieAI

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A lawyer, legal researcher and legal tech founder, Swetha has built AI products deployed inside Tier 1 firms and enterprises. She ensures GenieAI's alignment with the latest regulation and executes testing on the legal robustness of Genie output.

Reviewed by

Imad Mohammed Nazar

Legal Engineer, GenieAI

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A Skadden-trained M&A lawyer, Imad advised on cross-border transactions and contractual risk before moving into legal AI. He reviews GenieAI's output for compliance and enforceability across our 150+ supported jurisdictions, as well as facilitating external benchmarking.

Jurisdiction

Indonesia

Publisher

GenieAI

Sector

Business

Cost

Free to use

Last updated

About the Proforma Invoice

A proforma invoice is an essential preliminary document in Indonesian business transactions that bridges the gap between quotations and final invoicing. Unlike a standard invoice, this document serves as a detailed price quote and commitment outline before goods are shipped or services are rendered. You'll need this document to facilitate smooth trade operations, particularly in international commerce where advance documentation is crucial for customs clearance and financial arrangements.

When do you need this document?

You'll require a proforma invoice when engaging in international trade transactions, especially when buyers need advance pricing information for budgeting or regulatory approval. Indonesian exporters commonly use this document when foreign buyers require detailed cost breakdowns for import permits, letters of credit, or customs pre-clearance procedures. It's also necessary when shipping companies need accurate cargo valuations for freight calculations and insurance purposes. Additionally, you'll need this document when banks require preliminary transaction details for foreign exchange approvals or when buyers need advance documentation for internal procurement processes.

Key legal considerations

Your proforma invoice must clearly indicate its preliminary nature to avoid confusion with final tax invoices under Indonesian regulations. Include comprehensive seller information including your NPWP (tax identification number) and complete business registration details to ensure regulatory compliance. Specify detailed product descriptions, quantities, unit prices, and total amounts to prevent customs disputes or payment disagreements. Payment terms, delivery conditions, and validity periods must be explicitly stated to protect both parties' interests. Remember that while this document isn't a final invoice, it creates commercial expectations and may be legally binding regarding quoted prices and terms during the validity period.

Legal requirements in Indonesia

Under Law No. 7 of 2014 on Trade, your proforma invoice must contain specific mandatory elements including complete business identification details and accurate product classifications. The document must comply with Minister of Finance Regulation No. 68/PMK.03/2010 regarding documentation standards, particularly if the transaction will eventually require formal tax invoicing. Include your company's complete address, NPWP number, and business registration details to meet Indonesian commercial documentation standards. For electronic proforma invoices, ensure compliance with Government Regulation No. 82 of 2012 on Electronic Systems and Transactions. The document should reference applicable trade terms (Incoterms) and specify the governing currency, especially for international transactions involving foreign exchange regulations.

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