Indonesian Political, Business & Finance News

Customs Supports Jepara Luggage Exports with Bonded Zone Facility

| | Source: REPUBLIKA Translated from Indonesian | Economy
Customs Supports Jepara Luggage Exports with Bonded Zone Facility
Image: REPUBLIKA

SEMARANG – The Customs and Excise Regional Office for Central Java and the Special Region of Yogyakarta has demonstrated its commitment to supporting the development of export-oriented industry by granting bonded zone (Kawasan Berikat) facilities to PT Daw Son Indonesia on Tuesday (4/8/2026).

“The granting of this facility is part of the government’s efforts to enhance the competitiveness of national industry, encourage investment, expand export markets, and create jobs,” said Agus Yulianto, Head of the Customs and Excise Regional Office for Central Java and DIY, in a statement on Wednesday (5/8/2026).

A bonded zone is one of the fiscal incentives provided by the government for industries whose output is mostly destined for export markets.

The facility offers fiscal and procedural conveniences for export-oriented businesses, in the form of import duty suspension, excise exemption, and non-collection of VAT, Article 22 Income Tax, and import-related taxes (PDRI). This lowers production costs and speeds up the flow of goods.

PT Daw Son Indonesia is a manufacturing company based in Jepara, Central Java, engaged in the production of travel goods, particularly suitcases.

In 2026, the company has a production capacity of 840,000 units, projected to rise to 1,008,000 units by 2030 as it expands capacity and international market demand grows.

Its products are marketed to various countries, mainly the United States and the United Kingdom, and are expected to strengthen the contribution of Indonesia’s manufacturing sector to exports.

PT Daw Son Indonesia recorded an investment value of Rp 35 billion in 2026, projected to increase to Rp 55 billion by 2030. This increase reflects the company’s commitment to expanding business capacity, improving productivity, and strengthening the competitiveness of Indonesian products in the global market.

The bonded zone facility is also expected to have a tangible impact on employment. In 2026, PT Daw Son Indonesia employs 411 Indonesian national workers.

This figure is projected to rise to 700 Indonesian workers by 2030 alongside the company’s business expansion. The increase in job opportunities is hoped to generate a multiplier effect on regional economic growth, particularly in Jepara Regency.

Agus affirmed that granting bonded zone status is part of the Customs and Excise Regional Office’s commitment to fostering a conducive investment climate through customs services that are professional, accountable, and oriented towards ease of doing business.

“With the support of these facilities, the company gains various customs and taxation conveniences that can improve production process efficiency and strengthen the competitiveness of Indonesian products in the global market,” he said.

Through synergy between the government and the business community, Customs and Excise hopes that more export-oriented industries will develop in the Central Java and DIY region.

This step is expected to drive increased investment, expand employment opportunities, and make a tangible contribution to national economic growth through improved Indonesian export performance.

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