Indonesian Political, Business & Finance News

From Semarang to America: Central Java and Yogyakarta Customs Authority Provides Bonded Zone Facility for Footwear Industry

| | Source: KANWILJATENGDIY.BEACUKAI.GO.ID Translated from Indonesian | Trade
From Semarang to America: Central Java and Yogyakarta Customs Authority Provides Bonded Zone Facility for Footwear Industry
Image: KANWILJATENGDIY.BEACUKAI.GO.ID

Semarang (17 March) – Efforts to promote export-oriented industrial growth continue to be pursued by the Regional Office of the Directorate General of Customs and Excise for Central Java and Yogyakarta. One such initiative involves granting a Bonded Zone facility to PT Mingbao Lianchuang International, located in the Candi Industrial Zone in Semarang.

The company operates in the footwear manufacturing sector with an export orientation, targeting markets in Latin America, the United States, Europe and various countries in the Asian region. The provision of this Bonded Zone facility is expected to enhance the competitiveness of national industry whilst strengthening the contribution of the manufacturing sector to regional economic growth.

With support from the Customs and Excise facility, the company can obtain various advantages, including deferral of import duties and tax facilities on the importation of raw materials to be processed and subsequently re-exported. This facility is expected to streamline production processes, increase cost efficiency and expand the company’s export reach.

Beyond contributing to increased national exports, the presence of PT Mingbao Lianchuang International also generates positive employment absorption effects in Central Java. As of 2026, the company has absorbed 350 local workers, with projections to increase to 700 employees by 2030 as the company expands its business operations.

From an investment perspective, PT Mingbao Lianchuang International has demonstrated strong commitment to developing its business in Indonesia. In 2026, the company’s investment value reached Rp50 billion. This figure is projected to increase significantly to Rp350 billion by 2030, in line with plans to expand production capacity and strengthen export markets.

The approval of the Bonded Zone facility is part of Customs and Excise’s commitment to its role as a trade facilitator and industrial assistant, providing support to industrial operators to enable them to develop, increase exports and create new employment opportunities for the community.

The Central Java and Yogyakarta Regional Customs Office hopes that the presence of PT Mingbao Lianchuang International in the Candi Industrial Zone will serve as a driver of regional economic growth, strengthen the export-oriented industrial ecosystem and provide positive multiplier effects for surrounding communities. Support for the export-oriented industrial sector is also expected to enhance Indonesia’s competitiveness in the global market whilst strengthening its contribution to state revenue and national economic development.

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