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Tag: bonded

  • Indonesia’s Bonded Logistic Centers Facilitated to Reduce Logistic Cost

    Indonesia’s Bonded Logistic Centers Facilitated to Reduce Logistic Cost

    The government will provide facility for Bonded Logistic Centers (PLB) to improve efficiency and reduce logistic cost for industry, support provision of basic materials and facilitate exports and basic material imports.

    “The gist is to cut logistic cost,” Trade Minister Enggartiasto Lukita said on the sidelines of commissioning a PLB at the Grahadi State Building here on Wednesday night. In the commissioning ceremony almost midnight, the minister and East Java Governor Soekarwo witnessed the signing of a number of agreements in the trade sector.

    The cooperation agreements were signed between Director of PT Indra Jaya Swastika (IJS) and the Indonesian Textile Association, the Indonesian Footwear Association, the Indonesian Association of Timber and Furniture, on the utilization of PLBs. PLBs are a concrete form of the follow up of the third Economic Policy Package, the Trade Minister said.

    He said currently there are 32 units of PLB located in various areas including Surabaya, Karawang, Cikarang, Cibitung, Purwakarta, Cilegon, Cakung, Bandung, Denpasar, Balikpapan, Aceh , etc. “PLBs support various industrial sectors including oil and gas, mining, textile, chemical, food, cosmetic and automotive sectors,” he said.

    He said in 2016, the country’s trade had a surplus of US$8.8 billion or an increase from US$7.5 billion in 2015. In 2017, the government hopes to post an economic growth of 5.5 percent – 5.8 percent , up from 5.1 percent in 2016 with target at 6.1 percent set for 2018. The minister said he was optimistic the 2017 targets would be reached with a series of breakthroughs in the trade sector.

    Meanwhile, PT Indra Jaya Swastika, a logistic company, said it supports the East Java administration in its program to improve industrial competitiveness. “PLB IJS comes to support various industries mainly shoe making industry, food industry and small and medium industries,” its president director Utami Prasetiawati said.

  • Jokowi Opens Bonded Logistics Centers to Improve Indonesia’s Competitiveness’

    Jokowi Opens Bonded Logistics Centers to Improve Indonesia’s Competitiveness’

    Indonesian President Joko Widodo inaugurated 11 bonded logistics centers on Thursday (10/03) as part of Indonesia’s second economic stimulus package that was unveiled on 30 September 2015. These bonded logistics centers aim to curtail the country’s notoriously high logistics costs which makes businesses in Indonesia less competitive and the general business climate in Southeast Asia’s largest economy less attractive. The official opening ceremony for the 11 centers (mostly located on the island of Java) was held in Jakarta.

    At a bonded logistics center imported goods – which can be subject to certain tax incentives – are stored that are later distributed to the industries. Currently, however, the bulk of goods imported by Indonesian companies are stored in Singapore or Malaysia. This causes logistics costs to rise steeply as storage costs in Singapore and Malaysia are high.

    Indonesian Finance Minister Bambang Brodjonegoro said the flow of goods at these centers will be closely monitored by Indonesia’s Tax Department in order to combat illegal activities. Brodjonegoro added these centers will be given tax incentives such as a moratorium (delay) for tax and import duty payments (these are paid when goods are moved outside the center, not – as is the case now – when goods enter the center).

    Contrary to the bonded warehouse system (which is only used by the owner), the bonded logistics center can be used by other companies.

    Entrepreneurs and other industry players have reacted positively to this news. Ernovian Ismy, Secretary General of the Indonesia Textile Association (API), said these centers can curtail logistics costs for textile companies by 34 percent. Adhi Lukman, General Chairman of the Indonesian Food and Beverage Association (GAPMMI), said logistics costs in the food and beverage sector can be cut as the supply of raw materials can be sped up.

    Next year Indonesian authorities want to see the existence of 50 bonded logistics centers in the country.