As the largest economy in Southeast Asia and a member of ASEAN, Indonesia is a significant global player in the import and export business. While the country has strong ties to nations around the globe, it remains close to Singapore through robust economic cooperation. In fact, bilateral trade reached an impressive $59.1 billion in 2021, while Singapore has been Indonesia’s top foreign investor since 2014.
Indonesia also has over 40 Free Trade Agreements (FTAs) in force. This reduces barriers to trade and investment amongst countries, with new opportunities created for businesses.
With a marketplace that supports a wide range of goods, Indonesia represents a lucrative opportunity for importing and exporting. With mineral fuels, electronics, plastics and machinery just some of the most commonly imported commodities to Indonesia from Singapore, understanding how to import and export your goods is key to success. Here, we explore how your business can access this profitable marketplace.
1. Indonesia’s infrastructure and ports
A wealth of high-quality infrastructure supports the import and export of goods to and from Indonesia. By leveraging the country’s multimodal transportation to your advantage, you can better serve your customers and penetrate the market with outstanding efficiency.
For example, the Port of Tanjung Priok is the most advanced of its kind in Indonesia. As the 22nd busiest container port in the world, it’s responsible for more than 50% of the country’s trans-shipment cargo transportation. Meanwhile, it also handles 30% of the country’s non-oil and gas cargo.
Road transport is another vital consideration for Indonesia’s import and export industry, with road freight accounting for up to 80% of the country’s annual total freight volume. As more international logistics companies get involved, shifting goods in and out of Indonesia will become increasingly optimised.
2. Permits, taxes and tariffs
There are numerous procedures to consider when looking to import and export to and from Indonesia. Since 2021, Government Regulation 29/2021 requires businesses to obtain a Business Identification Number (NIB) through the Online Single Submission (OSS) system. However, certain types of goods may require additional import and export licenses. Look out for regulated products under Indonesia’s Restricted and Banned Goods List, also known as Larangan dan Pembatasan Impor dan Ekspor (LARTAS).
Importers and exporters in Indonesia must also declare their Tax ID Number Nomor Pendaftaran Wajib Pajak (NPWP) for all shipments to and from Indonesia. Don’t forget the HS code as well. The HS code is a 6-digit harmonised code used by customs authorities to classify and track international shipments of goods.
You must also be aware of the taxes and tariffs that apply to your specific goods. According to PWC, custom duties in Indonesia range from 0% to 170%. However, most imported items attract duties of less than 15%. Plus, your items may require certain markings and labels to abide by local regulations. Failure to abide by these regulations often means your shipment will get held up in customs. Naturally, this can lead to potentially costly delays that disappoint your customers.
To avoid any importing and exporting hiccups, it’s best to work alongside an experienced logistics partner who’s familiar with Indonesia’s rules and regulations.
3. Type of shipping equipment to use
Once you’ve discovered the permits, taxes and tariffs that apply to your goods, you need to find the ideal shipping equipment. With the right choice for your needs depending on its size and weight, there’s no shortage of options that might impact your decision.
For example, a container ship might be the most suitable choice for moving your products from Singapore to Indonesia. However, you may only need to organise Less than Container Load (LCL) shipping, meaning that your items share a container with other exporters.
Alternatively, a bulk carrier or a barge might be the best option for your specific items. By working alongside a reliable carrier such as Halcon Primo Logistics, you’ll have an expert team on-hand to advise you on the best approach to ensure your shipment goes smoothly.
Ship Your Products To Indonesia With CKB Logistics
For a reliable import and export partner to Indonesia, choose to partner with the logistics specialists at CKB Logistics, Halcon Primo’s sister company. Based in Indonesia, CKB’s customised sea freight and air freight forwarding solutions help our clients deliver any type of cargo, no matter how complex they are.
With over 18 years of experience, we provide local and international clients with a one-point contact for all their logistical needs, ensuring they maintain a detailed oversight of each shipment. Even better, we have a strong network of agents and partners throughout the 6,000 inhabited islands of Indonesia, so you can ensure your shipment will reach its destination safely and on time, including to and from remote locations.
Get in touch with our expert team to learn more about our shipping services.