Bonded Logistics Center: Understanding & Benefits for Logistics

Posted on September 18, 2023 by Nur Wachda Mihmidati

A bonded logistics center is a development of the function of a Bonded Storage Place where its function is to be a storage location for export and import goods needed by the industrial sector, as well as being the main distribution sector for imported raw materials and a collection center for exported goods.

If referring to Government Regulation no. 85 of 2015, PLB is defined as a place where goods from inside or outside the customs area can be stored temporarily involving more simple activities for a certain period of time before finally being released again. Get deeper in this TransTRACK article!

Bonded Logistics Center Functions

The main function of a bonded logistics center is to improve and simplify the export and import process. In export activities, companies are allowed to store their products at the PLB before sending them abroad. Simultaneously, a bonded logistics center can also carry out various tasks required by the company, such as combining products into one and preparing documents needed for export activities. In terms of import activities, PLB also functions to help companies by providing a location to store goods to be imported, which can then be immediately released after passing the inspection process by Customs.
Furthermore, PLB also has a role in supporting the increase in company operational efficiency. In the export process, companies can send their products to PLB and entrust the bonded logistics center to carry out packaging, processing and distribution tasks.
Not only that, another function of PLB is to improve the quality standards of products imported and exported by the company. This happens because the bonded logistics center is supported by the facilities needed to carry out optimal processing and storage of goods. For example, PLB is equipped with temperature and humidity control facilities which play an important role in maintaining the quality of the goods stored inside.
Furthermore, PLB plays a role in helping companies reduce the potential risk of loss or damage to goods. This is because the bonded logistics center facilities have been strengthened with various very strict security systems, such as the use of CCTV and security systems based on the latest technology. In addition, goods stored in PLB are also protected through insurance policies, so companies can have peace of mind regarding the possibility of damage or loss of goods.

Types of Bonded Logistics Centers

The Indonesian government continues to strive to improve the efficiency of the logistics system in the country, and has now reached the development stage of the second generation of Bonded Logistics Centers (PLB). This update involved a number of changes, including the addition of commodity coverage which then reached a total of eight types of commodities, consisting of:

Bonded Logistics Center (PLB) for Small and Medium Scale Enterprises
PLB for the Large Industrial Sector
PLB with Floating Storage Concept
PLB Focuses on Commodity Exports
PLB for Main Commodities, such as soybeans, wheat and corn
PLB as Air Cargo Center
PLB for Goods in Finished Form
E-Commerce Distribution Center in PLB Concept

Advantages of using PLB

The following is a table that illustrates the advantages of PLB:

No.	Benefit	Explanation
1	Suspension of Import and Export Duties	PLB provides guarantees for import duties and export duties, encouraging cross-border trade activities.
2	Simplification of Raw Material Distribution	Raw materials can be directly towed to PLB, reducing residence time at the port and speeding up the distribution process to companies.
3	Excise Exemption	Companies in PLB are exempt from excise by the Directorate General of Customs and Excise, reducing the burden of operational costs.
4	Tax Exemption for Imports (PDRI)	Companies are not subject to Import Tax (PDRI), providing financial incentives for import activities.
5	Similar Facilities for Moving Goods	Goods from other PLBs to PLB Topjaya Antariksa receive similar facilities including VAT and PPnBM exemptions.

Bonded Logistics Center Company in Indonesia

This list of eleven bonded logistics centers in Indonesia is part of the PPLB Group which aims to serve as a communication platform and liaison between PLB and other industrial partners. Currently, since 2020, PPLB members have increased to 39 companies distributed throughout Indonesia.

The following is a list of the entities included in it:

PT Cipta Krida Bahari
Astra Infra Port – Eastkal
PT Agility International
PT Petrosea Tbk
PT Kamadjaja Logistics
PT Toyota Motor Manufacturing Indonesia
Cikarang Dry Port
Logistics Solution World
Krishna Bali Cargo International
PT Vopak Terminal Merak
Dahana Initiates

Conclusion

Bonded Logistics Centers are emerging as an effective tool for companies looking to improve the operational efficiency of their logistics and supply chains. By providing efficiencies, reduced costs and improved stock management, PLB services have proven to be a solution that changes the way things work. As the industry grows, incorporating PLB services can be an important strategic move for your business to stay at the forefront.

To make deliveries more efficient, companies have the option to use a Fleet Management System to improve overall fleet performance. Better manage vehicle conditions and improve fleet utilization and safety through the FMS provided by TransTRACK!