Indonesian Political, Business & Finance News

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

| | Source: REPUBLIKA Translated from Indonesian | Economy
Central Java-DIY Customs Office Designates PT Kencana Garment Indonesia as Bonded Zone
Image: REPUBLIKA

The Central Java and DIY Customs Regional Office has reaffirmed its commitment to supporting national industrial growth by granting Bonded Zone status to PT Kencana Garment Indonesia on Thursday (18/06/2026).

A Bonded Zone is a customs facility provided by the government to companies, allowing them to store imported and/or domestic goods for processing, assembly, or combining before they are exported or marketed in accordance with regulations. Through this facility, businesses gain various customs advantages that can improve production efficiency and streamline logistics flows.

PT Kencana Garment Indonesia is a textile and garment company located in the East Ungaran District, Semarang Regency, with a current investment value of Rp32.6 billion. In line with its business development plans, the company aims to increase its investment value to Rp50 billion by 2030. With its new Bonded Zone status, the company is expected to expand its export markets while increasing its production capacity more efficiently.

The company’s presence also contributes positively to local employment. Currently, PT Kencana Garment Indonesia employs 380 Indonesian workers and 10 foreign workers. As part of the company’s expansion plans, 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 the national workforce while encouraging the transfer of knowledge and skills to local employees.

The Head of the Central Java and DIY Customs Regional Office, Agus Yulianto, stated that the provision of the Bonded Zone facility is a form of government support in creating a conducive business climate and enhancing the competitiveness of the national industry. Through the Bonded Zone facility, companies obtain various operational and customs eases that can accelerate the flow of goods and improve production cost efficiency.

“We hope this approval provides a multiplier effect for the regional economy through increased investment, manufacturing industry growth, and the creation of more job opportunities for the people of Semarang Regency,” he said in a statement on Friday (03/07/2026).

Customs is committed to continuing the expansion of customs facilities to businesses that meet the necessary requirements. With the increasing number of companies receiving Bonded Zone status 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 become more capable of competing in the global market through optimal service and supervision.

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