Jakarta, August 28, 2025 – The Indonesian Employers Association (APINDO) together with the Indonesian Bonded Logistics Centers Association (PPLBI) held a discussion forum titled Future-Ready Supply Chains: Leveraging Indonesia's Bonded Facilities for Global Growth as part of efforts to support the government's target in reducing national logistics costs, on Thursday (8/28/2025) at APINDO's office.

This discussion forum represents a business sector initiative supporting the Indonesian government's reaffirmed commitment to lower national logistics costs. Indonesia's current logistics costs are reportedly around 14.2% of GDP. However, when including export logistics cost components (contributing 8.98% to GDP), Indonesia's total logistics costs still stand at 23.08%. This figure remains far from the 8-10% benchmark of developed countries, and even when compared with many other Southeast Asian economies, it remains higher.

High logistics costs have long been caused by several structural factors, ranging from over-reliance on major ports, weak interregional connectivity, inefficient supply chain management, inadequate modern storage facilities, to bureaucratic complexities in import-export. This situation not only pressures businesses but also inflates goods prices and reduces the competitiveness of Indonesian products in the global market.

APINDO Chairperson Shinta W. Kamdani stated that the utilization of Bonded Logistics Centers (PLB) has increasingly demonstrated tangible impacts for national industries. "PLBs and Bonded Zones have proven to be game changers – not merely storage warehouses, but strategic instruments capable of reducing logistics costs, optimizing cash flow, strengthening full compliance, providing flexibility in global supply chains, offering special customs and tax facilities, and promoting export-oriented manufacturing activities to enhance national industrial competitiveness," Shinta explained.

Meanwhile, PPLBI Chairperson Utami Prasetiawati emphasized that real industry experience shows PLBs provide solutions that can mitigate risks, increase certainty, support compliance, and save costs. This is evidenced by testimonials from industry players utilizing PLBs, including from oil and gas drilling services and automotive sectors. "For oil and gas operations, time is everything. PLBs provide certainty and reduce risks of delays that can impact millions of dollars," said Utami.

In the automotive assembly sector, PLB benefits are also clearly evident. By storing imported components in PLBs, companies gain flexibility to withdraw components according to just-in-time production needs. This reduces costs while providing greater certainty in managing supply chains.

Thus, PLBs serve as strategic bridges supporting logistics efficiency, compliance, and global trade integration. Through continuous strengthening of collaboration between government, industry, and investors – supported by APINDO and PPLBI – PLBs exist not only to address current industry needs but also to prepare Indonesia for a greater role in global economic growth.

About APINDO

The Indonesian Employers Association (APINDO) represents the Indonesian business sector, established on January 31, 1952 under the leadership of a National Executive Board (DPN) based in Jakarta, with Provincial Executive Boards (DPP) in 34 provinces and 305 Regency/City Executive Boards.

Initially focused on Industrial Relations and Labor, APINDO's role has become increasingly strategic in advancing national interests through expanded focus on various sectors, human resource development, and partnerships, through APINDO's business units: International Strategic Partnership Center (ISPC) and APINDO Training Center (ATC). APINDO actively conducts international advocacy through membership and participation in the International Organization of Employers (IOE), ASEAN Confederation of Employers (ACE), and Confederation of Asia-Pacific Employers (CAPE).

APINDO has representation in Tripartite Institutions (government, employers, and workers elements), with APINDO executives serving in the National Tripartite Cooperation Institute, National Wage Council, and Occupational Safety and Health Council. APINDO's 2023–2028 programs include 4 Flagship Action Programs: Economic Roadmap for APINDO advocacy, Inclusive Economy for Independent MSMEs, Inclusive Business Collaboration to Address Stunting (KIPAS) involving 1000 businesses combating stunting, and APINDO HR-IR Certification to develop competent human resources in HR management and industrial relations. Visit website www.apindo.or.id.

About PPLBI

The Indonesian Bonded Logistics Centers Association (PPLBI) is an association overseeing Bonded Logistics Center (PLB) operators and users throughout Indonesia. Established in 2016, PPLBI was formed as a follow-up to government policy making PLBs strategic facilities for reducing logistics costs and strengthening national industrial competitiveness.

As a communication and collaboration platform, PPLBI bridges business interests with government and other stakeholders. PPLBI promotes supply chain efficiency, regulatory compliance, and adoption of modern technologies to enhance PLBs' effectiveness in supporting industrial production sustainability across sectors.

With the vision to make Indonesia a premier logistics hub in Asia-Pacific, PPLBI is committed to developing PLBs that not only provide supply chain and cash flow flexibility but also offer concrete solutions for national industries. Through PLBs, companies can reduce risks, increase business certainty, and achieve cost efficiencies that directly impact domestic industry growth.