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Sri Mulyani Disappointed as Logistics Centers Only Contribute Rp15B to State

Sri Mulyani Disappointed as Logistics Centers Only Contribute Rp15B to State

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Published At 12 Apr 2017


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Jakarta, CNN Indonesia -- Finance Minister Sri Mulyani Indrawati expressed dissatisfaction with the fiscal contributions from Bonded Logistics Centers (PLB) over the past year, which amounted to only Rp157.5 billion despite total inventory value reaching Rp1.16 trillion.


"The figures are still very modest. In my opinion, they need to be developed into larger numbers. Later I will check each company in the PLB," said Sri Mulyani at the Directorate General of Customs and Excise office (DJBC Kemenkeu), Jakarta, Wednesday (14/2).


According to DJBC Kemenkeu data, the fiscal contributions from PLBs consisted of three tax types: import duties totaling Rp10.28 billion, Income Tax (PPh) on imports worth Rp27.13 billion, and Value Added Tax (PPN) amounting to Rp120.09 billion.


The state revenue from the logistics sector came from activities at 34 PLBs distributed across 42 locations throughout Indonesia, particularly in western and central regions.


Beyond financial contributions, Sri Mulyani also voiced dissatisfaction with PLBs' failure to significantly reduce logistics costs in Indonesia.


Losing to Malaysia


DJBC Kemenkeu records show that 26% of total product prices in Indonesia are spent on logistics costs. This indicates Indonesia's logistics costs remain considerably higher than several neighboring ASEAN countries.


"Meanwhile in ASEAN countries it's only half, some at 15%, even 13%. Therefore reducing logistics costs is imperative," Sri Mulyani stated.


For comparison, the government notes Thailand's logistics costs at 15%, while Vietnam and Malaysia maintain approximately 13%.


The current 34 PLBs across 42 locations involve 20 international suppliers, 34 international distribution companies, and 97 local distribution companies, with average logistics lead time of 1.8 days and PLB utilization rate of 42%.


The PLB locations include: one in Lhokseumawe, one in Tanjung Berakit, one in Bangka, six in Balikpapan, one in Surabaya, one in Denpasar, three in Merak, one in Cilegon, two in Marunda, one in Halim, two in Tangerang, three in Cakung, one in Cilincing, one in Karawang, one in Purwakarta, one in Subang, two in Bandung, one in Tanjung Priok, two in Sunter, one in Cibitung, and one in Cikarang.


Industries utilizing PLBs include: automotive, food and beverage, industrial manufacturing, gas and fuel (BBM), mining and oil, heavy equipment, small and medium industries (IKM), defense, chemicals, commodities, personal care, textiles, and aircraft MRO. (gen)

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