JAKARTA - The Bonded Logistics Center (PLB) has successfully provided positive effects for businesses. One of them is the savings in logistics costs.

The government plans to develop PLBs in all provinces across Indonesia. However, according to Finance Minister Sri Mulyani, the government still has homework to do in developing PLBs. One area is in taxation.

"The ongoing homework from the tax policy side includes benefits we've already gained - like surveyor activities that can now be conducted in Indonesia without needing to go abroad," she said at the Directorate General of Customs and Excise office in Jakarta on Wednesday (12/4/2017).

The government will later seriously re-examine these tax issues, including incentives for companies developing bonded logistics centers.

"All aspects including tax regulations regarding classification and treatment - they're already in Indonesia but haven't entered Indonesian territory. I've requested the DJP (Directorate General of Taxes) and Customs to sit together and provide clarity. There must be no discrepancy between DJP and DJBC's approaches," she stated.

Discussions will later be held with businesses. This collaboration is expected to provide incentives for businesses developing bonded centers.

"We'll try to accommodate FTA systems and simplify preferential tariff provisions. Customs will cooperate with the Indonesian Bonded Logistics Center Association. I hope progress will be achieved next year," she said.

As known, the government aims for Indonesia to become an Asia-Pacific logistics hub. Currently, the government and businesses are developing PLBs across various regions in Indonesia.

"But we'll see what the end product's treatment looks like - tax aspects, logistics aspects. For instance, automotive companies using direct cutting - that makes sense but also becomes a benchmark," she concluded.

(rzy)