Encourage The Decline In Logistics, Apindo And PPLBI Costs To Strengthen The Strategic Role Of Bonded Logistics Center

JAKARTA The high cost of logistics in Indonesia is one of the main obstacles for national export productivity, the Indonesian Employers' Association (Apindo) and the Indonesian Bonded Logistics Center Association (PPLBI) emphasizes the importance of utilizing the Bonded Logistics Center (PLB) as part of efforts to reduce distribution costs and support inflation control.

This was expressed in a discussion forum entitled Future-Ready Supply Chains: Leveraging Indonesia's Bonded Facilities for Global Growth as an effort to encourage the government's target in reducing national logistics costs, Thursday, August 28.

This activity is a tangible form of business support for the Indonesian government which affirms its commitment to reduce national logistics costs.

For information, currently Indonesia's logistics costs are reported to be around 14.2 percent of Gross Domestic Product (GDP).

However, if you include the components of export logistics costs, the total cost is still at the level of 23.08 percent of GDP, a figure that is still far above the ideal standards of developed countries which are in the range of 8 percent-10 percent, even when compared to Southeast Asian countries, Indonesia's position is still not competitive.

Chairman of Apindo Shinta W Kamdani revealed that high logistics costs have so far been caused by a number of structural factors, ranging from excessive dependence on large ports, weak inter-regional connectivity, inefficient supply chain management, lack of modern storage facilities, to complexity of bureaucracy in exports-imports.

"This condition not only suppresses business actors, but also burdens the price of goods and reduces the competitiveness of Indonesian products in the global market," he said in his statement, Thursday, August 28.

In addition, he also highlighted the importance of utilizing facilities such as the Bonded Logistics Center and Bonded Areas as one of the strategic solutions to boost efficiency and prove to have a real impact on the national industry.

According to him, PLB is now no longer just a storage facility, but an integral part of the national logistics optimization strategy.

"PLB and Bonded Areas are present as game changers, not just storage warehouses, but strategic instruments that are able to reduce logistics costs, optimize cash flow, strengthen full compliance, provide flexibility in the global supply chain, provide special customs and tax facilities and encourage export-oriented manufacturing activities to increase national industrial competitiveness," he explained.

In line with that, General Chairperson of PPLBI Utami Prasetiawati revealed that PLB has been proven to be able to reduce risk, increase business certainty and operational efficiency in various industrial sectors, including oil and gas and automotive.

"For oil and gas operations, time is everything. PLB provides certainty and reduces the risk of delays that can have an impact of millions of dollars," he said.

From the automotive assembly sector, he continued, the benefits of PLB are also proven by placing imported components in PLB, the company has flexibility in issuing components according to the need for just-in-time production.

According to him, this reduces costs while at the same time providing greater certainty in managing supply chains.

Dia menambahkan, PLB merupakan jembatan strategis yang mendukung efisiensi logistik, kepatuhan, serta integrasi perdagangan global.

Menurutnya, dengan terus diperkuatnya kolaborasi antara pemerintah, industri, dan investor yang didukung Apindo dan PPLBI, PLB hadir bukan hanya untuk menjawab kebutuhan industri saat ini, tetapi juga untuk mempersiapkan Indonesia agar mampu berperan lebih besar dalam pertumbuhan ekonomi global.

He added that PLB is a strategic bridge that supports logistics efficiency, compliance, and global trade integration.

According to him, with the continued strengthening of collaboration between the government, industry, and investors supported by Apindo and PPLBI, PLB is here not only to answer the current needs of the industry, but also to prepare Indonesia to be able to play a bigger role in global economic growth.