Central Java-DIY Customs Office Designates PT Kencana Garment Indonesia as Bonded Zone

The Central Java and DIY Regional Customs Office has reaffirmed its commitment to supporting national industrial growth by granting Bonded Zone facilities to PT Kencana Garment Indonesia on Thursday. A Bonded Zone is a customs facility provided by the government to allow companies to store imported goods and/or domestic goods for processing, assembly, or consolidation before export or distribution in accordance with regulations. Through this facility, businesses gain various customs conveniences that can improve production process efficiency and streamline logistics flows. PT Kencana Garment Indonesia is a textile and garment industry company located in East Ungaran District, Semarang Regency, with a current investment value of Rp32.6 billion. In line with its business development plans, the company is targeting an increase in investment value to Rp50 billion by 2030. With Bonded Zone status, the company is expected to expand its export markets while increasing its production capacity more efficiently. The company’s presence also makes a positive contribution to employment. Currently, PT Kencana Garment Indonesia employs 380 Indonesian workers and 10 foreign workers. As the company expands, the number of local workers is projected to increase to 500 by 2030, while the number of foreign workers is expected to decrease to seven. This reflects the company’s commitment to optimising the use of national labour while encouraging knowledge and skills transfer to local workers. Head of the Central Java and DIY Regional Customs Office, Agus Yulianto, stated that granting Bonded Zone facilities is a form of government support in creating a conducive business climate and enhancing the competitiveness of national industry. Through the Bonded Zone facility, companies obtain various operational and customs conveniences that can accelerate the flow of goods and improve production cost efficiency. ‘We hope this approval will have a multiplier effect on the regional economy through increased investment, manufacturing industry growth, and the creation of more jobs for the people of Semarang Regency,’ he said in a statement on Friday. Customs is committed to continuously expanding the provision of customs facilities to eligible businesses. With the increasing number of companies receiving Bonded Zone facilities in the Central Java and DIY regions, it is hoped that the investment climate will become more competitive, national exports will continue to rise, and domestic industries will be better able to compete in the global market through optimal service and supervision.