A licensed freight forwarder/customs brokerage company will handle management of documents and submissions to the Indonesian customs, as we will perform much of the necessary processing on your behalf.
The following guide represents useful information for shippers transporting goods to and from Indonesia.
Our Global Network – Indonesia
Agility Indonesia specializes in contract logistics and customs efficiency. It is part of the global Agility network of more than 500 offices in 100+ countries. Agility Indonesia offers freight forwarding, contract logistics and supply chain solutions that connect your business to suppliers and markets around the world.
Licensing and Registration for Exports
Before a shipper begins shipping goods commercially from Indonesia, they must register as an exporter and obtain the license called NIB. NIB is meant to replace previously used NIK and APE.
The Indonesian Customs Export Declaration (PEB)
In order for the customs authorities to clear any of the shipper’s consignments for international shipping from Indonesia, the freight forwarder will need to submit a completed export declaration, known locally as a PEB.
The PEB offers customs details about your shipment and should include the following details:
- The identity of the exporter
- The identity of the recipient of the goods
- The means of transportation by which to ship the export
- The destination country
- Information about goods, such as the type of goods, quantities, and container numbers
- SDS (for DG cargo)
- Details about the company acting as your customs broker (this can be a specialist customs broker, a logistics company or a freight forwarder in Indonesia or elsewhere, as long as it is the entity taking responsibility for your shipment).
- A Truth Examination Report (or LKP) may also be required if your goods are of a type requiring export tax payment before cargo enter to customs area.
The company shipping your goods must submit the PEB in order to receive the Notification of Export Approval (known locally as NPE) before those goods enter the customs area. The following documents must accompany the NPE:
- A commercial Invoice;
- A packing List;
- Documents from related technical institutions (in case the exported goods subject to provision of prohibition and/or restrictions)
- An Export Card (for ocean freight only)
In addition, you may also need to provide other documents such as an insurance certificate, Certificate of Origin, quality statements, or quality certificates depending upon the types of goods you are shipping, MOU and Incoterms.
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Shipping Freight Restrictions from Indonesia
The Indonesian government imposes certain controls on the export of goods from the country. Shippers may find more details about products that are restricted or prohibited from exportation on the DGNED website. Here are the three categories, or levels, of control:
The categories for international shipping from Indonesia are as follows:
- Export-Free Goods
- Export Restricted Goods
- Export-prohibited Goods
|Airport Code||Airport Name||Passenger Traffic (in 2018)|
|CGK||Soekarno–Hatta International Airport**||65,893,904|
|DPS||Ngurah Rai International Airport||23,779,178|
|SUB||Juanda International Airport||20,951,063|
|KNO||Kualanamu International Airport||10,027,122|
Top Cargo ports in Indonesia
- Tanjung Priok Port in North Jakarta, Java
- Port of Belawan in Medan, North Sumatra
- Tanjung Perak Port in Surabaya, East Java
- Tanjung Emas Port in Semarang, Central Java
Source: Top Ports in Indonesia
Top Commodities Exported from Indonesia (2019)
Coal Briquettes ($20.3B)
Palm Oil ($15.3B)
Petroleum Gas ($8.32B)
Top Commodities Imported from Indonesia (2019)
Refined Petroleum ($12.3B)
Crude Petroleum ($5.11B)
Vehicle Parts ($3.25B)
Petroleum Gas ($2.53B)
Source: OEC Indonesia Profile
Top Tradelanes from the Indonesia (Indonesia is the origin point)
United States ($19.2B)
Top Tradelanes to Indonesia (Indonesia is the destination)
United States ($7.91B).
Source: OEC Indonesia Profile
Manufacturing Map of Indonesia
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Top Trends in Manufacturing
Indonesia is an increasingly attractive destination for foreign investment in manufacturing thanks to its cost- effective and abundant labor. If shippers plan to set up a manufacturing company or manufacture products in Indonesia then there are three potential ways one can do so:
- Most manufacturers establish in Indonesia as a partnership/joint venture with an Indonesian party
- Hire sub-contractors
- Starting up a wholly foreign-owned manufacturing company
Indonesia has launched a system of designated special economic zones (SEZ) which offer various administrative incentives such as easier licensing processes, tax concessions and advanced infrastructure to encourage the establishment of businesses and industries. Prioritized industries include manufacturing, maritime, transportation, banking and tourism. Free-trade zones provide business incentives and advantages relating to trade barriers, tariffs, quotas and bureaucratic requirements. It is important to note that companies manufacturing in the Batam free trade zone are exempt from import duties, luxury tax and value added tax.
Manufacturing companies are restricted in importing finished products for direct sale. The limited finished products permitted to be imported include those that are free samples or complementary products and those used for market testing.
Source: Manufacturing in Indonesia
Indonesian statistical Data for Export & Import can be found from the following site: https://www.bps.go.id/
Shipping via Ocean Freight to Indonesia
The majority of freight forwarding companies in Indonesia primarily specialize in ocean freight. Ocean freight tends to be the shipping mode of choice for exporters, mainly because it is less costly than sending goods as air cargo from Indonesia. In fact, for larger shipments, ocean freight is often the only practical solution. Keeping in mind that Indonesia is a growing economy and the volume of shipments continues to increase year over year – before the pandemic – understanding the trade lanes is vital.
Top Ocean Freight Lanes for Shipping from Indonesia
The following routes are some of the most frequently used by freight forwarding companies in Indonesia to ship clients’ goods consignments out of the country:
- Jakarta to Singapore
- Jakarta to Shanghai (China)
- Surabaya to Shanghai (China)
- Jakarta to Tanjung Pelepas (Malaysia)
- Jakarta to Busan (South Korea)
- Jakarta to Fremantle (Australia)
- Surabaya to Singapore
- Semarang to Singapore
- Medan to Singapore
- Medan to Port Kelang (Malaysia)
The Longest and Shortest routes for International Shipping from Indonesia
The longest ocean freight routes from Indonesia direct exports to countries in Northern Europe. For instance, the route from Jakarta to Klaipeda in Lithuania involves a transit time of 50 days, with similar transit times attached to the routes from Jakarta to Oslo in Norway and Helsinki in Finland.
The shortest routes are those connecting Indonesia with Singapore and Malaysia. In fact, the shortest route of all, from Belawan to Malaysia’s Penang port, has a transit time of just one day.
E-Commerce in Indonesia
With a population of more than 260 million, Indonesia is the most populated country in Southeast Asia. The country consists of more 17 thousand islands, further complicating communication between the different regions. The internet therefore plays an important role in promoting economic and social interests. Overall, internet penetration has been on the rise for a decade now and is not expected to slow down. Smartphones are the main device to access the internet as a result of difficulties in building a fixed-line network in an archipelago, as well as a massive enhancement of the mobile network. The nationwide trend towards online communication offers opportunities in many digital areas, including e-commerce.
Indonesia’s e-commerce market is expected to reach over 50 billion U.S. dollars
E-commerce could be key to not only giving citizens in remote areas the opportunity to benefit from a wider range of consumer goods and services, but also to increase the pool of potential customers for businesses. Providing platforms to improve online trading is therefore one of the most sought-after business opportunities in the country. Many global e-commerce leaders are currently fighting for the largest market share. In fact, even though the signs of a successful online market have been positive for a long time, the industry is still at an early stage of development. In 2019, the gross merchandise volume of the e-commerce market amounted to approximately $20.9 billion and was forecasted to reach about $82 billion by 2025. The main reason for this development would be the increase in e-commerce users. Indonesia is expected to have almost 190 million people using some form of e-commerce by 2024.
Shopee is currently the most popular online marketplace in Indonesia
Lazada, Tokopedia, Bukalapak, Blibli, Shoppee and JD are currently the most popular online distributors in Indonesia . These distributors offer a wide range of products and are poised to take the market leader position in the near future. So far, they are more visibly seen in urban centers and mostly used by people between the ages of 20 and 39 years old. Their success will not only be based on the ease of accessing the internet and their individual marketing strategies but also the creativity in coming up with new transport and payment opportunities. Indonesia is still lacking a government organized delivery system and up until now not every potential e-commerce customer uses online banking. While it can be assumed that the use of online banking will just be a matter of time, it will not be irrelevant which company can provide the best, fastest and most reliable methods of delivery. However, the general success of the e-commerce industry is not at risk at all.
Source: E-Commerce in Indonesia
Ship For Success – Indonesia
The emerging market is poised for greater success as SMEs in Indonesia are hungry for global growth. From technology to prioritizing international markets over their home market, shippers responded to questions about why they do business in Indonesia and the supply chain landscape in the country. The following graphic offers cogent data to explain the situation in Indonesia.
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