Business competition is every day’s reality not only among individuals or corporations but also among countries. The business competition should be addressed with hard work and efficient system. Bearing this in mind, the government of Indonesia has initiated to build the Bonded Logistics Centers (Pusat Logistik Berikat / PLB) serving as multi-function logistics warehouse for import and local goods by withholding the import duty and exempting value the added tax (PPN) and enabling operational flexibility. President of the Republic of Indonesia Joko Widodo officially opened the PLB in March 2016.
The legal basis for construction of the PLB is the Government Regulation (PP) No. 85 year 2015 on the amendment of the PP No. 32 year 2009 on the bonded warehouse and the amendment of the Finance Minister Regulation (PMK) No. 272//PMK.04/2015 on the bonded logistics center. The PLBs are located across Indonesia and they comprise multiple products, from automotive to industrial raw materials.
United Tractors’ PLB
As a company constantly improving its service for the customer, UT also utilizes this facility. Registered as one of the companies in the PLB, UT now owns two bonded locations, which were chosen to reach out its customers, in Balikpapan, East Kalimantan and Cilincing, North Jakarta.
The presence of the PLB can facilitate logistics process by cutting the trade chain. The product, initially to be exported, is diverted for the home market, shortening customer’s lead time for heavy equipment or spare parts needed. Customers also enjoy the benefit from exempted VAT (value added tax), getting heavy equipment and spare parts at more affordable prices.