Universitas Gadjah Mada
Faculty of Economics and Business

The Bonded Logistics Center (PLB) is a multifunctional warehouse established by the Indonesian government as a form of national logistics efficiency that aims to attract domestic investment and make Indonesia an Asia Pacific hub. PLB was officially established in 2016 and currently spread across 128 points over Indonesia. Of these PLBs, 54 of them are members of the Indonesian Bonded Logistics Center (PPLBI) which serves as a forum for communication and liaison between PLB operators and other industrial partners.

The strategic role of PLB encourage the research team from the Faculty of Economics and Business, Gadjah Mada University (FEB UGM) consisting of Kusdhianto Setiawan, Ph.D., (chairman), Luluk Lusiantoro, Ph.D., and Gumilang Aryo Sahadewo, Ph. D., in collaboration with PPLBI conducted a study entitled "Evaluation of Business Processes and Economic Impacts of the Indonesian Bonded Logistics Center". The study intends to evaluate the effectiveness of the PLB business process, its performance, and contribution to the country's economy.

In the Study Results Dissemination Webinar held by the Center for Logistics and Supply Chain Management (MLRP), the research team explained the results of their research. It is found that the program was considered to have been in accordance that the PLB program was considered to have been in accordance with the plan and had contributed positively to the country's economy. The results of this study reaffirm the role of PLB as an alternative logistics management that is transparent and free from illegal fees (extortion) and is directly integrated with customs. PLB provides many benefits, including the suspension of import duties for up to three years, and equipped with a comprehensive electronic surveillance system.

The contribution of PLB to the economy is reflected in the increasing flow of goods (in and out) which also increases foreign exchange imports and exports. PLB has also been proven to help boost industrial performance in Indonesia by facilitating and accelerating access to raw materials and supporting materials from abroad, reducing logistics costs, and increasing the production and industrial competitiveness of PLB users' clients. The benefits of PLB are not only enjoyed by large companies and foreign private companies, but also small and medium enterprises in Indonesia. Besides, PLB also encourages tax revenue in the context of imports (PDRI), such as income tax, VAT, and import duties. However, in its operational activities, PLB encountered various obstacles, such as regulations that were out of sync with the ministry due to lack of socialization. Therefore, there is a need for harmonization and socialization of regulations and continuous improvement in order to achieve the goal of PLB to become a logistics center in the Asia Pacific.

Source: Leila Chanifah Zuhri / Sony Budiarso

Webinar link: https://youtu.be/gAkheAhTQ8A