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July 22, 2019

CKB Through PLB Contributes to Reducing Logistics Costs in Indonesia

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Jakarta, 22 July 2019 - PT Cipta Krida Bahari (CKB), a subsidiary of PT ABM Investama Tbk (ABM) as the owner of one of the first Bonded Logistics Center (PLB – Pusat Logistik Berikat)  licenses in Indonesia, has consistently developed its logistics business; initially from one bonded zone it has now expanded to seven locations spread across Indonesia.

"The 7 (seven) PLB locations that we manage allows a faster and more efficient flow of goods. Importers also benefit because their goods are not directly affected by taxes before leaving the PLB," Iman Sjafei, CKB Logistics President Director said in Jakarta Friday (7/19).

Iman explained, one of the PLBs managed by CKB Logistics is located in Cakung, East Jakarta, which accommodated numerous units of heavy equipment and spareparts from various industries that which thus had been entrusted to Singapore.

In this area CKB Logistics operates a land area of 124,000 m2 and serves more than 50 companies as partners. This year, CKB Logistics is expanding by adding 18,000 m2 of warehouse capacity in Surabaya, bringing the total capacity to 42,500 m2, located in Central Business Park Osowilangon which includes PLB facilities and will start operating in early October 2019.

"We are optimistic that the increasingly positive business climate in the logistics business will continue to improve. With a better level of efficiency, the competitiveness of national industries will also increase," he added.

Based on data from the Directorate General of Customs and Excise (DJBC), since its launch in 2016 there have been 95 PLB in 144 locations across Indonesia. The rapid development of PLB proves that PLB is one of the solutions needed by industry players both exporters and importers to save raw materials, production machines / equipment and finished goods so as to create a more practical and efficient trading system.

Currently, CKB Logistics has 7 (seven) multifunctional warehouses located in Cakung, Marunda, Cilegon, Karawang, Surabaya and Balikpapan where occupancy rates up to  June 30, 2019 have reached 91%. CKB Logistics' PLB warehouse facilities are generally widely used by business players engaged in the mining, oil and gas, construction, steel, tire, textile, tobacco, chemical and aviation industries.

Iman said, there are many benefits that can be obtained by the government as a regulator with the increasing number of PLB. First, PLB attracts foreign direct investment to develop the manufacturing sector in Indonesia.

Secondly, PLBs reduce port congestion that is likely to build up, cutting dwell times. Third, the flow of supervision of imported goods is better organized. Fourth, revenues from import duties will increase. Fifth, PLBs have turned Indonesia into a logistics hub in the Asia Pacific.

As a private company that is trusted to manage PLBs in Indonesia, we continue to strive to be the best PLB operator, so that customer loyalty is maintained. "CKB Logistics will also continue to take initiatives to optimize economic opportunities and encourage the creation of efficiency in the national logistics industry," he concluded.