Indonesia takes over part of Singapore’s logistics role

Indonesia is now developing a second generation of Bonded Logistic Centers (PLB Second Generation), as PLB First Generation was considered a success in reducing logistic costs.

“The goods that in the past were stored in Singapore now can be stored here at a lower cost. A businessman could cut the cost up to Rp 7.18 million (US$502.60) per container,” said Director General of Customs and Excise Heru Pambudi in Jakarta on Monday.

He said the PLB Second Generation, which was inaugurated by President Joko “Jokowi” Widodo on March 27, was an improvement on the PLB First Generation, particularly in efficiency.

He said many imported goods to be sent to Indonesia that previously had to be transited in Singapore port and Malaysia’s Portland in the past, now could be kept directly in Indonesia.

In the long term, he added, PLB Second Generation would be regrouped into Large Industry PLB, Small and Medium Industry PLB, E-commerce PLB, Basic Commodities PLB, Air Hub Cargo PLB, Floating Storage PLB and Finished Goods PLB.

Air Hub Cargo will be developed particularly near airports in Bali and Jakarta. “Airplanes to Bali, for example, are mostly filled with passengers, while the planes’ bellies are empty. Those could be used for cargo,” Heru added.

For the first step, Finished Good PLB, particularly, could handle alcoholic beverages that currently were still kept in Singapore.

“The advantage of the PLB is it’s centralized. So the flow of goods can be closely controlled,” he added.