Jakarta, Oct 19 (Antara) - Indonesia, actively working to become a maritime axis nation and expanding its logistics transportation connectivity through a sea toll project, is poised to serve as a logistics center in the Asia Pacific Region.
With that in mind, the government is developing Bonded Logistics Centers (PLBs) in various parts of the country. So far, it has built 28 PLBs and is planning to build more.
Now, at least 124 companies wishing to run PLBs business in the country are consulting the government.
According to Heru Pamungkas, the director general of customs and excise, these 124 companies are currently having consultations on the establishment of Bonded Logistics Center (PLBs).
"A total of 124 companies are consulting the Customs and Excise Office. Every week, we have a consultation forum to give a chance to these companies to convey their interest. We assist and provide explanations to them so that they understand various technical matters, facilities and objectives of the PLB," the director general said on the sidelines of the Jakarta International Logistics Summit and Expo (JILSE) in Jakarta on Wednesday.
Heru noted that of these 124 companies, nine or ten can be asked to run PLB business in the near future.
"Nine to ten companies are nearing the final stage of the process. Others are still undergoing consultations," he informed.
He added that the companies currently in the finalization process and set to be a part of the PLBs should be ready to increase the number of PLB multi-function warehouses to accommodate export and import goods.
"They are undergoing a finalization process. The important thing is that the PLBs would ensure an even distribution of auxiliary raw materials and capital. This includes efforts to expand the PLB business to areas outside Java," explained Heru.
As of now, the government already has 28 PLBs, of which eleven have been inaugurated by President Joko Widodo since March 2016 and 17 others were endorsed at the Jakarta International Logistics Summit and Expo (JILSE) 2016.
In the meantime, Finance Minister Sri Mulyani Indrawati expressed hope that the presence of PLB, which was launched in March 2016, would make Indonesia a logistics hub in the Asia Pacific region.
"PLB is expected to make Indonesia a logistics hub in the Asia Pacific region. Thus, Indonesia will enjoy efficiency in logistics costs and gain ease in the distribution of goods in the region," she said at the JILSE on Wednesday.
Sri Mulyani explained that by becoming a logistics hub in the Asia Pacific region, Indonesia will no longer need to rely on Singapore and Malaysia, which already have logistics network connectivity in the region.
"The Asia Pacific region is currently a healthy region in the global economic environment. The presence of the PLB can further boost the region as a new trade logistics zone," she said.
She also pointed out that the construction of PLB is essential in reducing the length of stay in ports, which helps in cutting down the high economic cost and creating equity.
"With the PLB, there is no accumulation of goods at the port, which has been the main reason for high economic costs," she said.
Director General Heru Pamungkas said the presence of PLB can reduce not only the cost of stockpiling by up to 25 percent but also the unloading time of the goods by almost one day, until they are taken out of the port.
According to Heru, the PLB can also provide faster supply of imported goods to the national industry, as needed, in just a matter of minutes.
"For industrial raw materials, they have a clearance time of only about 15 minutes, and they provide a 7x24 hour service. PLB is also ready to expand the building and the storage area," Heru remarked.
Although the PLB provides incentives in the form of exemption from import duty, import tax and other conveniences, Heru believes the entry of foreign industries to PLB could provide additional revenue from the corporate income tax side.
"The PLB enables companies that stockpile goods abroad to move into the country and generate profits that could raise tax revenue," Heru added.
Heru hopes that PLB will develop parallel to the sea toll program in future, as proclaimed by government, so that the process of industrialization in the area could run more effectively and the commercial sector could grow more rapidly.
"We set up logistics centers in the port, so that ships will also have loads when leaving the ports, especially items of strategic commodities that can be exported by Indonesia," he said.
The government, through the Directorate General of Customs and Excise, launched the PLB in March 2016, which is a multi-functional warehouse to accommodate export/import goods. It is part of the government's second round of economic policy package.
These facilities are believed to enhance the distribution of cheap and efficient logistics and the growth of domestic industries, thus making Indonesia a logistics hub in the Asia Pacific region.
The government has so far constructed 28 PLBs that deal with various sectors such as oil and gas, mining, maintenance, repair and refit (repair and overhaul), automotive and pharmaceuticals.
According to the Directorate General of Customs, about 10 PLB will be developed in the near future in collaboration with associations and major players in the industry.***3***
(A014/INE)EDITED BY INE(T.A014/A/BESSR/A. Abdussalam) 19-10-2016 21:05:4 |
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