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.