PLB Effective to Guarantee Raw Material Stock, Smoothen Logistics Activity

There is evidence to say that the bonded logistic center (PLB) is very effective to guarantee the stock of raw material for domestic industry production, thus encouraging a fluent national logistic activity, according to Indonesia Importers’ Association (GINSI).

Explaining to press today (Tuesday, July 30), GINSI General Secretary Erwin Taufan said 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.

“The government, the customs authoriry in particular, is totally right on issuing the regulation. Even, this PLB has also minimized smuggling activities. There may be some problems in implementation, but it is not a big deal. Let us do correction to make it more perfect. Never think to dismis PLB function. Moreover, business stakeholders have been familiar business tranparency,” he said.

In addition, PLB has also helped to cut dwelling time at the port and logistics activities.

Taufan noted that any abuses, if any, in the implementation of PLB are prabably done by certain person only. They may try to deceive some regulations that have been issued by the government relating the activities of PLB.

“No doubt, some have been unconfortable with the PLB. Earlier, there was no physical check for cargoes of green lane but PLB has sponsored for transparancy as all cargoes are opened at PLB facilities,” said Taufan.

He said many importers member of GINSI have sent appreciation on those PLB facilities. He appreciates the new paradigm and concept in customs that put the trust forward, meaning that no need to do physical check in the PLB gate in, but let inventory IT-based system do it.

“PLB forces any business stakeholders be more transparent in their income, thus indirectly saves much to state income from their taxes,” he said.

As a part of government economy package, Taufan explained, the PLB has also encouraged the small and medium economy as it facilitates the stock and supply of cheaper raw material, in addition to a faster and easier process in getting them.

“PLB gives benefits to small and medium scale industries, including garments, textile, and textile-related products,” he said.

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.

“Based on the survey, we can conclude that PLB facilities have helped the small and medium scale industries,” he said.

In addition, PLB has also created a multiplier effect in which it opens more employment opportunity. “So, the issue saying that PLB has triggered overstock of finished textile priducts is absolutely wrong, incorrect,” he said.

Taufan explained that the APIKMI survey stated that of total national textile and textile related products, PLB only handled more than 2.7%.

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