Discover how Indonesia’s Bonded Logistics Centers (PLB) help reduce the country’s high logistics costs. This article explores the functions, benefits, and positive economic impact of PLBs, as well as the challenges and solutions in their development. Also learn about the role of Transcon Indonesia as a trusted PLB provider.
Indonesia’s logistics costs remain a major challenge. Compared to developed countries and fellow ASEAN members, Indonesia’s logistics costs are relatively high—reaching 27% of the national GDP.
To address this, the government launched a breakthrough in late September 2015 by offering incentives to develop Bonded Logistics Centers (PLBs). But what exactly is a PLB, and how does it help reduce national logistics costs?
What is a Bonded Logistics Center?
A PLB is an expansion of the bonded storage area concept, functioning as a hub for distributing imported raw materials and consolidating export goods.
According to Government Regulation No. 85/2015, a PLB is a bonded storage area used to store goods from outside or inside the customs area. Items can be sorted, labeled, or repackaged before being released.
PLBs reduce import costs by offering temporary customs-free storage, accelerating distribution, shortening port dwelling time, and cutting logistics expenses—all of which improve efficiency and competitiveness.
Development of Logistics in Indonesia
Before PLBs, Indonesia’s logistics sector was plagued by high costs and inefficiencies, including slow customs clearance, complex regulations, limited infrastructure, and poor storage capacity.
The government responded with initiatives such as regulatory reform, digital integration (INSW), port and dry port development, regional distribution centers, and maritime toll road programs—culminating in the introduction of PLBs.
Functions and Key Benefits of PLBs
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Tax and Duty Savings: Goods stored in PLBs are exempt from import duties and VAT during storage.
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Efficient Inventory Management: PLBs help avoid stock shortages or surpluses through modern inventory systems.
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Simplified Logistics Processes: Proximity to distribution hubs reduces transport time and costs.
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Flexibility & Value-Added Activities: Companies can repack, sort, or assemble goods as needed.
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Lower Risk of Loss: Secure storage reduces damage or theft risks.
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Improved Operational Performance: Faster goods movement increases customer satisfaction and supply chain coordination.
Economic Impact of PLBs
PLBs lower operational costs, improve customs efficiency, and enhance the global competitiveness of local products. They also attract investment, generate employment, and stimulate regional economies.
Challenges & Solutions
Challenges include limited infrastructure, complex regulations, and lack of technology. Solutions involve investment in infrastructure, regulatory simplification, adoption of modern systems, and public-private collaboration.
Transcon Indonesia: Trusted PLB Provider
Since 2007, Transcon Indonesia has offered efficient, transparent, and affordable PLB services. Backed by expertise in customs, cutting-edge IT, and strategic partnerships, Transcon is your reliable logistics partner.