JAKARTA, KOMPAS – Competition among bonded logistics centers in ASEAN is intensifying. Malaysia and Singapore have reduced storage service fees at bonded logistics centers by approximately 40-50 percent. Therefore, the government needs to take strategic steps amid suboptimal relocation of Indonesia's imported raw materials from neighboring countries' logistics centers to Indonesia.
Chairman of the Indonesian Textile Association Ade Sudrajat stated on Monday (6/11) in Jakarta that Malaysia has reduced storage service fees at bonded logistics centers (BLD) by 50 percent. This policy was implemented due to Malaysia's concern about the potential relocation of imported raw materials to BLDs in Indonesia.
This situation has caused importers and traders of industrial raw materials in Indonesia to be reluctant or slow in moving goods to Indonesian BLDs. Additionally, these imported raw materials are also widely traded to other ASEAN countries.
“Cotton as textile raw material, for example, is also traded to Vietnam. Importers and traders serving that country won't relocate their goods to Indonesia due to shipping difficulties. They require large vessels, whereas Indonesian BLDs are only equipped to handle smaller feeder vessels,” he explained.
According to Ade, only about 20 percent of vessels needed by Indonesia's textile industry have relocated from Malaysian BLDs to Cikarang BLD in Indonesia. Currently, raw cotton materials leaving Cikarang BLD average 10,000 bales per day.
This quantity remains suboptimal as only two large companies currently utilize the facility. Industrial and SME demands haven't been optimally met. “The ideal daily output should be 30,000-40,000 cotton bales,” he said.
Chairperson of the Indonesian BLD Association Ety Puspitasari noted that BLD competition in ASEAN has indeed intensified. Singapore has also reduced BLD fees and taxes by 40-50 percent, even offering free services for certain products and periods. Indonesia's BLD potential remains significant and promising despite current suboptimal utilization.
Current major users come from petrochemical and heavy equipment sectors. Some heavy equipment has already been relocated from Singapore to Indonesia.
“Approximately 4 hectares of land in Singapore have been vacated due to these relocations. We hope such relocations will continue in the future,” she stated.
Ety added that foreign BLD suppliers currently require clarification from the Ministry of Finance's Directorate General of Taxation regarding the status of foreign companies storing inventory in Indonesia. Clear regulations are needed to prevent them from being forced into permanent establishment status, enabling Indonesian BLDs to become regional hubs.
Furthermore, revisions are needed to Finance Minister Regulation Number 268 of 2015 regarding documentation requirements for obtaining VAT exemption certificates for government-related projects. (HEN)
