Indonesia President inaugurate bonded logistic center, eyes the new hub in the region

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Photo BLC

JAKARTA (TheInsiderStories) – Indonesia President Joko Widodo inaugurate the operational of Bonded Logistic Center (BLC) in Cipta Krida Bahari Industrial Estate, Cakung at East Jakarta. Government plans to set up BLC in various economic sectors all over the country that aims to ease goods procurement and reduce dwelling time at ports.

To accommodate the program government has released PP No. 85/2015 on landfill bonded, PMK No. 272/2015 on BLC and Perdirjen Bea Cukai No. 1/2/3 on Jan 29.

“Our logistic costs 2-2.5 times of Singapore and Malaysia. We want to be equal with them,” Widodo said in his speech by adding in the future there is a massive logistic displacement from both countries to Indonesia.

Currently, Indonesia ranked 53 in the World Bank’s latest logistics performance index, worse than neighboring Malaysia, Thailand and Singapore. Logistic and transportation cost of Indonesia, Widodo said, still high around 24 to 27 percent of gross domestic product.

He expects the reducing of logistic and transportation costs inflation rate will fall even lower from currently around 4 percent.

Finance Minister Bambang Brodjonegoro adding, government has give licenses for eleven companies to operate BLC. The 11 companies are PT Cipta Krida Bahari, PT Kamadjaja Logistic, PT Petrosea, PT Pelabuhan Penajam Buana Taka, PT Dunia Express Transindo, PT Toyota Motor Manufacturing Indonesia, PT Vopak Terminal Merak, PT Dahana, PT Gerbang Teknologi Cikarang and PT Agility.

He continued, through BLC, companies could store their goods in the shared warehouse for up to three years and still receive tax incentives, compared with only one year for goods kept in a normal warehouse in a bonded zone. BLC will also free up some space at warehouses in congested ports and help with efforts to speed up custom clearance, he added.

“Next year we target to see 50 new centers and that in the next 2-3 years Indonesia will be the logistics hub for the region,” He stated.

As previously reported, the government has included the establishment of the logistics centers in its economic policy packages that, as a whole, are expected to improve the business climate and attract foreign investment.

President expects, with this program that dwelling time at seaports could be reduced significantly once the goods were centralized at the BLC from currently 4.7 days to around 3 days starting April.

President Director of PT Cipta Krida Bahari, Iman Sjafei stated that currently the company is ready to optimize warehouse companies in some existing locations such as Jakarta, Surabaya, Balikpapan, Samarinda and Banjarmasin. With the new logistic center, He added, the company’s could reducing logistic costs around Rp65 billion in three years time while Toyota Rp55 billion.

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Source: The Insiderstories
Indonesia President inaugurate bonded logistic center, eyes the new hub in the region

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