The COVID-19 pandemic, which began in early 2020, significantly increased logistics costs—making it even more difficult for businesses to survive amid economic downturns.
Additionally, the pandemic disrupted raw material availability due to lockdown policies, impacting export-import activities and delaying distribution.
But there’s no need to worry—you can take advantage of Bonded Logistics Centers (PLB).
PLB is a strategic solution to minimize business risks. Let’s dive deeper into why it’s so effective.
What is a Bonded Logistics Center (PLB)?
Transcon Indonesia | PLB (Bonded Logistics Center)
A PLB is a multifunctional warehouse used to store exported and imported goods, primarily for industrial use. It also serves as a consolidation hub for exports and a distribution center for imported goods.
The Indonesian government launched PLBs in 2015 to address high logistics costs.
Logistics cost is a key indicator of distribution efficiency from producers to end users. Unfortunately, Indonesia has one of the highest logistics costs in ASEAN, which leads to higher raw material prices.
Before PLBs existed, domestic industries had to store goods in warehouses in Malaysia and Singapore before bringing them to Indonesia—a process that was time-consuming and costly.
PLBs help reduce logistics and shipping expenses, support domestic industry growth, and position Indonesia as a logistics hub in the Asia-Pacific region.
Functions of PLB
You may wonder—what exactly does a PLB do? Here are its primary functions:
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Provides warehouse space for storing export and import goods to strengthen national economic efficiency.
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Brings producers closer to raw materials, reducing raw material and production costs.
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Enables faster access to affordable raw materials.
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Streamlines the flow of goods from PLB to factories.
PLB vs. Warehouse Rental: What Makes PLB Better?
While PLBs and rented warehouses seem similar, PLBs have key advantages:
1. No Supply Restrictions
Unlike warehouse rentals, PLBs have no limitations on the types or quantity of goods stored.
With traditional warehouses, specific commodities must match the license agreement. If not, entry or release of goods can be restricted. In contrast, PLBs operate like "one-stop shops" for diverse goods—without complex restrictions.
2. Longer Storage Duration
Warehouse rentals typically allow only 1 year of storage.
PLBs offer storage for up to 3 years—allowing more time for planning, documentation, and re-export schedules. Goods can even be stored while waiting for master lists or supporting documents.
3. Lower Operational Costs
PLBs help businesses save on costs through tax and duty deferrals.
They also reduce logistics delivery times, lowering storage and port handling expenses.
4. Access for MSMEs (Micro, Small, and Medium Enterprises)
PLBs make it easier for MSMEs to access imported raw materials—something they previously struggled with due to limited quantities.
Now, MSMEs can get what they need in small quantities, at affordable prices, and with faster access.
PLBs offer massive benefits for businesses of all sizes—especially during challenging times like the pandemic, where managing expenses wisely is crucial.
That’s why Transcon Indonesia (TCI) provides reliable PLB services.
Established in 2007, TCI has earned the trust of businesses throughout Indonesia.