The high cost of national logistics is still a problem in itself. Moreover, the cost of logistics in Indonesia is relatively high when compared to other developed countries and ASEAN member countries, reaching 27% of Gross Domestic Product (GDP).
The high cost of logistics in Indonesia has been taken seriously by the government, so that at the end of September 2015, the government made a breakthrough in the logistics sector by providing incentives in the development of the Bonded Logistics Center (PLB) area. So, what is PLB and how can this service effectively reduce national logistics costs?
Getting to Know the Bonded Logistics Center
In fact, the Bonded Logistics Center (PLB) is an extension of the function of the Bonded Warehouse (TPB) which is intended as a distribution center for imported raw materials and a consolidation center for export goods.
Referring to PP No. 85 of 2015, the Bonded Logistics Center is a bonded warehouse that functions as a storage for goods originating from outside the customs area and/or goods originating from other places within the customs area. Storage of goods in PLB can be accompanied by one or more simple activities such as sorting, labeling and packing for a certain period of time to be released again.
Bonded Logistics Centers reduce import costs in Indonesia by providing temporary duty-free storage facilities for imported goods, accelerating distribution, reducing waiting times at ports, and lowering logistics costs. The combination of all these aspects can synergistically increase import efficiency, lower tariffs, and encourage the competitiveness of domestic products.
History of Logistics Development in Indonesia
Before the bonded logistics center, the logistics sector in Indonesia faced various challenges, especially the high cost and inefficiency. The slow customs and excise process and complex regulations slow down the movement of goods, increase logistics costs, and cause delays in shipping.
Limited infrastructure, such as ports and roads also further worsen this problem.
In addition, the limitations of storage facilities result in goods often have to be expelled from the port quickly which ultimately adds additional costs.
High risk of shrinkage and loss of goods is also a significant challenge.
And not stop there, the lack of integrated technology and information systems causes a lack of visibility in the supply chain which in turn makes logistics management less efficient.
Not silent,
The government has taken various initiative steps to resolve various logistics problems in Indonesia.
Efforts that have been made include improvement of regulations, procurement of infrastructure, to the acceleration of information and communication technology.
Some efforts that have been made such as the preparation of the blueprint for the development of the national logistics system, the development of the Indonesia National Single Window (INSW), infrastructure development such as the Regional Distribution Center (PDR), Port, and Dry Port, to the launch of the Sea Toll and Maritime Outlet Programs.
And as mentioned earlier, the peak of alleviating the problem of this logistics cost is the development of the Bonded Logistics Center (PLB).
Functions, profits, to the benefits of PLB
Outline,
The Bonded Logistics Center (PLB) serves as a storage and distribution facility of goods that offer exemption from import duty and taxes during the storage period. PLB facilitates the import and export process, increases the efficiency of inventory management, and enables added value activities such as packaging and labeling.
More detailed,
Here are some of the main benefits or benefits of using the Bonded Logistics Center (PLB):
1. Savings of tax costs and import duty
Goods stored on PLB can be released from import duty during the storage period, which reduces import costs. Transactions in PLB are also often not subject to VAT so that it can reduce tax burden.
2. Efficiency of stock management
PLB helps companies manage inventory more efficiently,
Reducing the risk of excess or deficiency of stock. Equipped with modern technology, PLB can also increase efficiency in storage and managing goods.
3. Ease of the logistics process
PLB facilitates the import and export process and reduces the time and bureaucracy needed.
Goods stored in PLB can be closer to the distribution point thereby reducing shipping costs.
4. Flexibility and added value activities
The presence of PLB allows the company to store goods according to the needs and fluctuations of demand. Companies can carry out activities such as re -packaging or assembly of goods on PLB
.
5. Reduction of the risk of loss
Reducing the risk of losses from damaged or not sold for efficient management. Providing safe storage facilities, protecting goods from damage or loss.
6. Improvement of operational performance
Improve coordination in the supply chain by accelerating the movement of goods and information. PLB services allow faster and more accurate shipping to have an impact on increasing customer satisfaction.
Positive impact of PLB on the national economy
The Bonded Logistics Center (PLB) has a significant positive impact on the national economy. By providing temporary customs -free import goods storage facilities, PLB helps reduce the company's operational costs. Customs and Excise processes that are faster and more efficient reduce the cost of demurrage and handling,
and allows the company to postpone payment of import duty until the goods are needed.
PLB also increases the competitiveness of local products in the international market. Logistics efficiency obtained through PLB allows shipping faster and cheaper, so that local products can be offered at more competitive prices.
Besides that,
PLB encourages regional and national economic growth by attracting investment into the logistics and manufacturing sectors, creating new jobs, and increasing economic activity around the PLB. Increased supply chain efficiency contributes to increasing overall productivity and economic growth.
Challenges and solutions in PLB development
The development of the Bonded Logistics Center (PLB) in Indonesia faces challenges such as inadequate infrastructure, complex regulations, and lack of technology. Limited infrastructure hinders the distribution of efficient goods, while complicated regulations make it difficult for implementation.
The solution includes investment in increasing logistics infrastructure such as ports and roads, as well as simplifying regulations to facilitate PLB operations. Adoption of modern technology, such as warehouse management systems and tracking goods, is also needed to improve efficiency and transparency.
Collaboration between the government and the private sector is very important to overcome this challenge.
Transcon Indonesia, Provider of Trusted Bonded Logistics Center in Indonesia
Founded in 2007, Transcon Indonesia was present as a trusted bonded logistics center in Indonesia. With good competence and added value in the field of logistics, Transcon Indonesia is fully committed in presenting simple PLB services,
efficient and transparent at an affordable cost. Supported by qualified knowledge in customs policies, sophisticated IT capabilities and strategic partnership facilities, Transcon Indonesia is ready to become your loyal partner of your logistics. Contact us and feel the memorable experience in your company's logistics activities now!