President Jokowi targets relocation of ASEAN logistics center to Indonesia

✈ President Joko Widodo (third right), accompanied by the Minister Bambang Brodjonegoro (second right) conduct a review of one of the warehouses after inaugurating the symbolic 11 Logistics Center Bonded (PLB) in Indonesia in the Industrial Area Krida Bahari, Cakung, North Jakarta, Thursday (March 10, 2016). (ANTARA/Widodo S. Jusuf)

President Joko Widodo (Jokowi) is targeting to relocate the logistics center of the Association of Southeast Asian Nations (ASEAN) to Indonesia following the inauguration of the Bonded Logistics Center (PLB) in the country.

"Hopefully, everything can be relocated here as consumption and production takes place here in Indonesia and constitutes 45 percent of the nations gross domestic product," President Jokowi stated after inaugurating the operations of the PLB in Cipta Krida Bahari industrial area, Cakung, North Jakarta, here on Thursday.

The president hopes that the extensive displacement of logistics that earlier had to be undertaken in other countries or in neighboring ASEAN countries would be moved to Indonesia following the inauguration of the PLB.

President Jokowi lauded the facilities and incentives being prepared for the PLB.

"We earlier only had a bonded warehouse. It can be interpreted as only having a stall, but now, it has been transformed into a supermarket as we now have a PLB, so that later the logistics costs can decrease significantly," the president explained.

Jokowi also remarked that when other countries can play their role as logistics centers then Indonesia should also follow suit.

"If other countries could do that, then we could also be in the competition. This is the era of competition, and we will lag behind if we do not have low logistics costs. Our logistics costs are still at 24-27 percent, which is high," Jokowi pointed out.

The PLB is a multifunctional warehouse for imported goods on which no import duties or import taxes are levied.

Besides this, provisions of restrictions on imported goods into the PLB have not been applied, and all activities that can be carried out in warehouses abroad can also be done in the PLB, including surveyor examinations.

The establishment of the PLB is expected to lower the national logistics costs, reduce storage time at ports, and attract investments for the nations economic growth.

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