Karimun, Batamnews - Tanjung Uban Fuel Oil Terminal, Bintan, Riau Islands, has been designated as a Bonded Logistics Center.

Head of the DGCE Regional Office for Riau Islands, Akhmad Rofiq, said that Indonesia, especially the Riau Islands, is strategically located on the world trade route, namely the Malacca Strait.

However, when compared to the business side of Singapore, Riau Islands is far to reach that level.

"For this reason, it is very good and important for Indonesia, especially the Riau Islands to be able to Copy and Update (C&U) Singapore's strategy in capturing existing business opportunities so that there is no sharp prosperity disparity between Singapore and Indonesia, especially the Riau Islands," said the Head of the Regional Directorate of DJBC Riau Islands.

For this reason, with the establishment of the Tanjung Uban Oil Fuel Terminal, the management and assets of which include ports and tanks have been separated from PT Pertamina (Persero) to PT Peteka Karya Tirta as a Large Industrial Bonded Logistics Center.

This is expected to be used as a supplier of held stock (SHS). So far, almost all of the implementation of SHS has been done in Singapore.

According to him, there is potential for added value for tank rentals with up to 3 million USD per year, employing 30 people at the Tanjung Uban BBM Terminal.

"Nationally, for Indonesia, stock resilience increases from products brought by suppliers to Indonesia, reaching 2 million KL/year (1.5 million KL existing imports) so that the potential for stock resilience increases by about 3 days, there is a potential for overseas trading of around 500 thousand KL/year. Moving a business from Singapore to Indonesia, the estimated transaction value is 585 million USD/year," said Rofiq.