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Customs Supports Palm Oil Product Exports Through Bonded Zone Facilities

| | Source: REPUBLIKA Translated from Indonesian | Trade
Customs Supports Palm Oil Product Exports Through Bonded Zone Facilities
Image: REPUBLIKA

The Directorate General of Customs and Excise (DJBC) continues to support the export of Indonesian palm oil products, notably through the provision of bonded zone facilities and effective customs services. These facilities provide ease for businesses in the palm oil sector to increase production efficiency, smooth export activities, and enhance the added value of Indonesian palm oil products in the global market.

The Head of the South Kalimantan Regional Office of Customs, Muhtati, stated during a collaborative working visit with the Palm Oil Fund Management Agency (BPDP) that bonded zones are a strategic government instrument to support export-oriented industries and increase the competitiveness of national products. Muhtati emphasised that Customs is committed to supporting domestic industries, including palm oil and its derivatives, to ensure they can expand, increase added value, and compete globally.

‘This support is provided through effective customs services and facilities, while maintaining our functions of supervision and compliance with applicable regulations,’ Muhtati said in a statement on Friday.

He explained that bonded zones are customs facilities provided by the government to support export-oriented industrial activities through various fiscal and procedural eases. These include import duty suspensions, excise exemptions, and the non-collection of import taxes, combined with streamlined goods flow and simplified licensing. Through these facilities, Customs acts as a trade facilitator and industrial assistant, while ensuring usage remains orderly, accountable, and compliant with regulations.

Within the supervisory region of the South Kalimantan Regional Office, PT Citra Borneo Utama Tbk is one of the companies utilising bonded zone facilities. Located in West Kotawaringin, Central Kalimantan, the company operates in the processing and export of palm oil and its derivatives. Since being designated as a bonded zone in 2018, PT Citra Borneo Utama Tbk has continued to develop downstream palm oil products, including ‘Minyakita’ and ‘Hanau’ cooking oils, as part of strengthening national industrial downstreaming.

For PT Citra Borneo Utama Tbk, the bonded zone facility has had a tangible impact on company performance. From January to June 2026, the company recorded export values exceeding Rp 3.03 trillion and employed 260 workers. Additionally, the facility increased operational cost efficiency by approximately 9.91 per cent, supporting the development of the downstream palm oil industry which provides greater added value to the national economy.

Customs support is also realised through services and supervision of all export activities. Pangkalan Bun Customs ensures all export processes comply with customs regulations, from fulfilling customs obligations to supervising goods intended for export. As of July 2026, Pangkalan Bun Customs has processed 157 export goods declaration (PEB) documents, with total export duties amounting to Rp 882,370,716,000 and recorded palm oil funds reaching Rp 861,582,459,000.

‘The palm oil industry and its derivatives play a strategic role in the national economy,’ Muhtati noted. He added that Customs will continue to build synergy with businesses through professional customs services and optimal supervision to support business continuity and provide certainty for entrepreneurs. Moving forward, Customs aims to strengthen synergy with all stakeholders to ensure bonded zone facilities are utilised optimally, transparently, and accountably to drive exports, downstreaming, investment, and sustainable economic growth.

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