Indonesia cut the export licensing process in bonded zone - Photo by Ministry of Finance
JAKARTA (TheInsiderStories) – Indonesia cuts the export licensing process in bonded zone from 15 working days at the customs office and 10 working days at the Customs head office to three working days at the customs office and one hour at the regional office, said one government official.
Deputy Finance Minister Mardiasmo said, the number of electronic transactional licenses was also cut down from 45 licenses to 3 licenses. Furthermore, he said, the Directorate General of Customs and Excise aimed to rebranded the bonded zones to boost exports in the country by providing certainty and various facilities for exporters.

“At the end is how to encourage exports and limit imports. So, if possible we still have two net and positive so that our CAD will be more and more positive,” he in front of the exporters, importers and entrepreneurs on Tuesday (11/27).

Through Minister of Finance Regulation Number 131/PMK.04/2018 concerning Bonded Zones and the Director General of Customs and Excise Regulation Number PER-19/BC/2018 concerning Management of Bonded Zones provides certainty and various facilities to users of export and import services.

The certainty and convenience applied include:

a. Cutting down the licensing process is faster, from the initial 15 working days at the Customs Office and 10 working days at the DGCE Head Office to 3 working days at the Customs Office and 1 hour at the Regional Office;

b. The number of transactional licenses, from 45 licenses was cut down to 3 licenses electronically;
c. The period of passing of the Bonded Zone permit applies continuously until the Bonded Zone permit is revoked so that it does not need to submit an extension of the permit;
d. Subcontracting facilities in the form of exports directly from subcontractor recipients;
e. The application of the One Size Doesn’t Fit All principle, namely the provision of different fiscal and procedural facilities for each type of industry, so that in the Bonded Zone permit there is certain treatment for each Bonded Zone Entrepreneur;
f. Service synergy between the directorate general under finance
 ministry; and
g. Independency services for bonded zones that meet the requirements.
The validity period of the bonded area applies continuously until the end of the licensing period of the bonded area so that it does not need to apply for an extension of the permit. There are also subcontracting facilities in the form of exports directly from subcontracting recipients.
The directorate general also applies the One Size Doesn’t Fit All principle, which is the provision of different fiscal and procedural facilities for each type of industry, so that in the bonded zone permit there is certain treatment for each bonded region entrepreneur.
Then, Customs also carries out service synergies between the Directorate General of Taxes and independent services for bonded zones that meet the requirements.
Currently there are 1,360 bonded companies spread throughout Indonesia, from garment production, footwear, electronic vessels, horticulture, and others.
Based on the results of measurements of the economic impact of bonded zones and the ease of import of export destinations (KITE) in 2016, companies that receive the benefits of bonded and KITE zones have contributed exports worth US$54.82, equivalent to 37.76 percent of national exports and absorb direct labor of 2.1 million people.
In addition, the company also contributed to the state revenue of Rp73.65 trillion ($5.01 billion) and increased investment by Rp168 trillion based on gross fixed capital formation and Rp653 trillion from equity.
Its also encourages the creation of integrated bonded zones with bonded logistics centers in order to increase production capacity of bonded zones by optimizing supply chains through bonded logistics centers.
To providing various facilities, Customs also ensures that bonded zones will not be misused by monitoring and evaluating. The concept of supervision began to be developed using technology and information, not just limited to physical supervision.
Technology and information are also used for the process of importing and dispensing goods carried out independently by bonded zone companies. Self-service that can be done by companies such as goods entry, demolition, stockpiling, loading, and expenditure of goods so that the operation of the bonded area can be carried out 24 hours 7 days.
US$1: Rp 14,700
Written by Staff Editor, Email: theinsiderstories@gmail.com

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