Government Introduces Regulatory Framework On Bonded Logistic Centers

I. Introduction

As part of the second economic stimulus package introduced by the government last September aimed at boosting the country's economy, the government issued Government Regulation No. 85 of 2015 which amends Government Regulation No. 32 of 2009 on Bonded Storage Places ("Regulation 85"). Regulation 85 introduces the concept of Bonded Logistic Centers (Pusat Logistik Berikat) as one type of Bonded Storage Place (Tempat Penimbunan Berikat) in Indonesia. A Bonded Storage Place is basically a building, site or area that meets certain requirements which is used to store goods for certain purposes and obtains import duty postponement. Previously, there were only 6 types of Bonded Storage Place, namely: