PLB Totally Helps Indonesian Logistics Business More Competitive in Global Market

After running almost two years since masively developed as part of government economy package program, there is evidence to say that PLB (Bonded Logistic Center), has helped the national industry, including the logistic industry be more competitive in the global market, top executives of logistics business association have said.

Saying in a statement released to Indonesia Shipping Gazette, Yukki Nugrahawan Hanafi, Chairman of Indonesia Logistics and Forwarding Association (ALFI/ILFA), underlined that the PLB has played key role in the business of supply chain and proves its significant contribution to encourage this country’s industry competitiveness.

He said PLB has encouraged Indonesia’s export import performance to get improvement.

“No doubt, PLB has supported our industries, our international trade of export import, and has so for logistics sector, to be more competitive in global market,” Yukki said, but noted more improvement is needed for any PLB facilities.

“Never end to do improvement. It is true PLBs have shown their key role to help our industries and trade be better, but other countries also did similar things. So, what we expect is that our PLB facilities should do contineously improvement,” Yukki noted.

Yukki appreciates the PLB program that the government has initiated and approved, saying the program had encouraged not only the big industries and manufacturing, but also the small and medium scale business and industries (IKM/UKM) since it shifts the raw material storage from abroad to Indonesia.

As early explained, PLB is different with with other bonded stoarage site (TPB), including its process to get permit. The PLB permit provision is based on the business plan proposal submitted by a logistics business player or by an industry player/producer to government via Directorate General of Customs (DJBC). The government will approve the proposal if it will give benefit to the national indsutry growth.

Meanwhile, the other TPBs usually come from government business plan and the the facilities beneficiaries will just operate them.

Yukki also appreciates the DJBC on its concern to contineously support the PLB performance, but noted to do more improvement and syncronization to make those PLB get optimal performance.

Earlier, importers association have also sent appreciation to PLB, saying PLB is very effective to guarantee the stock of raw material Indonesia for national industry.
Indonesia Importers’ Association (GINSI) General Secretary Erwin Taufan earlier said that PLB facilities have helped importers as import duties and taxes (income tax/PPH and value added tax/PPN) can be paid later, after the goods have been released from PLB.

In addition, PLB also gives benefits to small and medium scale industries, including garments, textile, and textile-related products.

Quoting the survey released by the Indonesia’ small and medium scale business association (APIKMI), Taufan said that PLB has cut the price of raw matetial. According to the survey to West Java small and medium-scale business players, he said, the price for raw material has down by 11%, from Rp15,500 to 13,750 in average.

But Taufan noted that PLB facilities have not tackled more raw material supply for the industries yet. Quoting the APIKMI survey, Taufan said that of total national textile and textile related products, PLB only handled more than 2.7%.

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