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🇮🇩 Indonesia /Economy & Trade

Indonesia Customs Supports Palm Oil Exports Via Bonded Zone Facilities

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Indonesia's Directorate General of Customs and Excise supports palm oil exports through bonded zone facilities.
  • These facilities aim to increase production efficiency, streamline exports, and add value to Indonesian palm oil products globally.
  • PT Citra Borneo Utama Tbk, a company in Central Kalimantan, has benefited significantly from these facilities, achieving substantial export value and job creation.

Indonesia's Directorate General of Customs and Excise (DJBC) is actively bolstering the nation's palm oil exports by providing bonded zone facilities and efficient customs services. These measures are designed to enhance production efficiency for businesses, facilitate smoother export processes, and ultimately increase the global competitiveness and added value of Indonesian palm oil products.

Muhtadi, Head of the South Kalimantan Customs and Excise Regional Office, highlighted that bonded zones are a strategic government instrument supporting export-oriented industries. The DJBC is committed to supporting domestic industries, including palm oil and its derivatives, to foster growth, enhance value addition, and ensure competitiveness in the international market. This support is provided through effective customs services and facilities, while maintaining oversight and compliance with regulations.

This support is provided through the provision of effective customs facilities and services, while still prioritizing the function of supervision and compliance with applicable regulations.

— MuhtadiThe Head of the South Kalimantan Customs and Excise Regional Office explained how the agency supports the palm oil industry.

Bonded zones offer significant fiscal and procedural advantages, including deferred import duties, excise exemptions, and waivers on import-related taxes. These benefits are combined with streamlined logistics and simplified licensing procedures. The DJBC acts as a trade facilitator and industrial assistant, ensuring these facilities are utilized properly, accountably, and in accordance with the law.

PT Citra Borneo Utama Tbk, located in Kotawaringin Barat, Central Kalimantan, is a prime example of a company leveraging these bonded zone facilities. Since its designation in 2018, the company has focused on processing and exporting palm oil products, including well-known cooking oils like Minyakita and Hanau, contributing to the national industrial downstreaming efforts. From January to June 2026, the company reported an export value exceeding IDR 3.03 trillion, created 260 jobs, and improved operational cost efficiency by approximately 9.91 percent.

Bonded zones are one of the government's strategic instruments in supporting export-oriented industries and increasing the competitiveness of national products.

— MuhtadiMuhtadi described the role of bonded zones in boosting national exports.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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