Shipping cargo
from Indonesia

The economy of Indonesia is the largest in Southeast Asia and is one of the emerging market economies. As a middle-income country and member of the G20, Indonesia is classified as a newly industrialized country. It is the 17th largest economy in the world by nominal GDP and the 7th largest in terms of GDP (PPP).

Huge and sprawling, Indonesia has the world’s fourth-largest population, currently standing at 281 million. Indonesia is the world’s largest exporter of thermal coal, palm oil, refined tin and a major seller of nickel-based steel, copper, rubber, electrical machinery, and other products. Fake hair from Indonesia is extremely popular, Indonesia holds the second place in exports for this product (after China).

The country is spread across more than 17,500 islands, the only possible ways of shipping worldwide are via air and ocean freight.

International freight forwarder Agora Freight offers multimodal freight forwarding services necessary for your cargo to be safely delivered to practically every part of the world. Use the Agora Freight platform to find the best options to ship your freight from Indonesia by various transport modes. You will be able to compare freight rates, transit times, routings, all these are online with no need to sign in.

Information for Indonesian exporters and importers.

Businesses now only require a Business Identification Number (NIB) to begin their import or export activities. Obtaining a NIB can be done through the Online Single Submission (OSS) system. Previously, businesses had to apply for one of three types of import licences: API-U (General Import Licence); API-P (Producer Import Licence); and a Limited Import Licence, also known as API Terbatas (API-T). The NIB now doubles up as an API-U, API-P, and an API-T. Further, exporters also only require a NIB.

However, businesses importing certain types of goods will require an additional import licence from the MoT. Depending on the company’s circumstances, this could be for:

• An importer registration licence;
• An import approval licence for producer importers (companies that import materials used in the manufacture of their own products); or
• A general import approval licence.

Similarly, businesses exporting certain types of goods will require an additional export licence from the MoT, which could be:

• An export registration licence; or
• An export approval licence;
• Importing to Indonesia.

Before importing or exporting goods, businesses should check with the Indonesian Harmonization System (HS) Code, which is used to classify every category of products. This is because specific products may require additional licenses or registration.

Furthermore, the HS code is one of the factors that determine the rate of taxes and customs duties, as well as any specific import/export requirements for that product.

Businesses importing into Indonesia must provide the following documents:

• Commercial invoice, signed by the manufacturer or supplier as true and correct.
• Bill of lading, in three endorsed originals and four non-negotiable copies.
• Certificate of insurance
• Packing list.
• NIB/import permit; and
• Customs import declaration.

Import tariff and taxes

Customs duties in Indonesia vary from 0 to 17 percent, with most imported items attracting duties in the range of 0 to 15 percent. The amount of duty depends on the type of goods imported, based on the product’s HS code. It is required to pre-pay customs duties and import taxes and provide notification of the incoming freight to customs. An import sales tax is imposed on imports at the point of entry (except for those goods considered essential by the government) at rates within the range of five and 30 percent.

Further, Indonesia is committed to the ASEAN Free Trade Agreement within which duties on imports from the member countries generally range from zero to five percent, except for products specified on exclusion lists.

Exporting goods from Indonesia

The export process usually begins with a sales contract process between the exporters and importers, through which the payment can be made via the letter of credit (L/C) or non-L/C methods. Legal entity required. Only Indonesian incorporated legal entities can export goods from Indonesia. These can be limited liability companies, public company, or a cooperative.

Businesses exporting out of Indonesia must provide the following documents:

• Bill of Lading, Airway bill or other transport documents such as a postal receipt, cargo receipt.
• Commercial Invoice.
• Customs Export Declaration.
• Packing List.
• Export declaration of goods (PEB).
• Insurance Certificate.
• Export Permit.
• Certificate of Origin.

Export tariff and taxes

Exporters are exempted from export duties, VAT, and tax on luxury products for materials and intermediate products used in manufacturing goods produced from export. However, exports of certain items such as untreated skin, tanned leather, and coal attract export duties of 25 percent, 15 percent, and five percent, respectively.