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Jakarta Post

More bonded warehouses needed to cut logistics costs: Minister

News Desk (The Jakarta Post)
Jakarta
Sun, September 25, 2016

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More bonded warehouses needed to cut logistics costs: Minister Industry Minister Airklangga Hartarto (third left) and Trade Minister Enggartiasto Lukita (third right) listen to an explanation by customs and excise director general Heru Pambudi (second right) in Jakarta on Sept. 23. (The Jakarta Post/Reza Zafiruddin)

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ndonesia needs to increase the number of bonded warehouses and logistics centers in the country to further cut national logistics costs, Trade Minister Enggartiasto Lukita has said.

Since national businesspeople have been storing their imported goods in warehouses in neighboring countries like Malaysia and Singapore, the government would further boost the development of bonded logistics centers (PLB) as a solution for this issue.

“Industries will enjoy easier access to purchase raw materials,” Enggartiasto said in Jakarta on Friday, explaining why the logistics centers and bonded warehouses will increase efficiency and lower costs.

The government has given permits to 12 firms to build PLB aimed at supporting various businesses like oil and gas, food and beverages, chemicals, cotton and automotive. Several of them would be located in the main business cities such as Jakarta, Badung (Bali), Balikpapan (East Kalimantan) and Cilegon (Banten).

The Finance Ministry’s director general of customs and excise, Heru Pambudi, explained that the authorities would tighten supervision and the screening of goods in a bid to prevent smuggling while the PLB program was being implemented. (rez/ags)

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