Pharma ingredients suppliers to benefit from Indonesia's new tax free logistics centres

The centres will allow products to be stored, exempt from import duties and related taxes, for up to three years

Indonesia has launched its first bonded logistics centres to which products can be shipped and stored for up to three years, without import duties or related taxes

Indonesia has launched its first bonded logistics centres (PLB) to which products can be shipped and stored for up to three years. During this time, the products will be exempt from import duties and related taxes.

The move constitutes long-awaited support for local industries, including pharmaceuticals, which still imports up to 90% of the ingredients needed for the production of medicines. By storing goods in PLBs, overseas suppliers can drastically cut the delivery time to the local buyers.

Eleven PLBs were inaugurated by President Joko Widodo, who was reported in The Jakarta Post as saying that Indonesia, the biggest economy in the region, had the potential to replace Singapore and Malaysia as Southeast Asia's logistics centre.

The PLBs are located in Jakarta (Cakung, Sunter), Banten (Merak), East Kalimantan (Balikpapan), West Java (Cibitung, Karawang, Cikarang and Subang) and Bali (Benoa and Denpasar).

The government plans to establish a further 50 bonded logistics centres across the archipelago in 2017.

This will be discussed, with other topics, at CPhI South East Asia, which takes place at Jakarta International Expo from 6–8 April.

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