Have you considered shipping to Indonesia? As Southeast Asia’s largest e-commerce market, it could be a lucrative opportunity for your business.
With the right local insights, customs knowledge, and – of course – an international shipping partner, your business can cash in. Read on for an in-depth guide to help your business export to Indonesia.
ONLINE SHOPPING IN INDONESIA: MARKET OVERVIEW
Southeast Asia’s e-commerce leader
In 2023, Indonesia’s e-commerce market was valued at 62 billion dollars – far ahead of other countries in the region(1). This figure is expected to rise to 160 billion dollars by 2030.
Huge internet adoption
Thanks to the country’s improved digital infrastructure, it’s forecast to have a whopping 274.2 million internet users in 2024(2).
A mobile-first nation
Indonesia’s mobile commerce market is booming – it now takes a 64% share of the country’s total e-commerce transactions(3).
Where does Indonesia import from the most?
Top import countries4
(By share of total Indonesia imports, 2022)
Where do consumers in Indonesia shop online?
Most visited marketplace websites in Indonesia, 20245
- Shopee
- Tokopedia
- Lazada
To sell on one of these marketplaces, foreign SMEs will need to register as an “official store.” This is an exclusive service provided by marketplaces to show that the seller is the rightful owner of the brand and has the legal rights to sell products.
What are they buying?
Most popular Indonesia online shopping categories6
(By estimated value, in billion US dollars, 2022)
How do Indonesian consumers like to pay for their online purchases?
After all, e-commerce shoppers are more likely to abandon their carts if they cannot pay using their preferred payment method.
Distribution of e-commerce payment methods in Indonesia7
(By share of total e-commerce transactions, 2022)
Online shopping in Indonesia: what do consumers care about?
These insights will help you position your business to appeal to local buyers.
Mobile commerce is big business
Ensure you optimize your e-commerce website for the small screen to give customers a user-friendly experience. Offer ‘Guest Checkout’, an address autocomplete feature, and payment via digital wallet so customers don’t have to fill in lots of details.
Social commerce is booming
Indonesians spend an average of three hours and 14 minutes a day on social media(8). Livestreaming on TikTok Shop is gaining momentum there. It’s a great way to showcase your products in more detail – just make sure your stream is fun and creative if you want to keep viewers’ attention!
Fast shipping is the biggest incentive
“Delayed/slow delivery” was cited by Indonesian consumers as the number one deterrent to shopping online(9). With DHL Express, you can guarantee your customers fast and reliable shipping – wherever in the world they may be!
Online shopping in Indonesia: leading events
Be sure to add these dates to your marketing and sales calendar so your business can prepare and cash in!
Double digit sales days, throughout the year
1.1 (1st Jan), 2.2 (2nd Feb), 3.3 (3rd March) … each month, many Indonesian retailers use the “double digit” day to lay on deals and discounts. Ensure you schedule your sales promotions for these dates if you want to cash in!
Idulfitri (Eid al-Fitr), March/April
As a Muslim country, Indonesia celebrates Idulfitri, which marks the end of the fasting of Ramadan. The national holiday is only two days long, but during the two weeks beforehand, people are busy shopping for food and new clothes for the event.
Black Friday/Cyber Monday weekend, November
Like many other countries, Indonesia participates in this sales bonanza. Competition is fierce, so be ready to offer significant deals to attract bargain hunters.
Christmas Day/New Year, December/January
Indonesians who shop with cross-border brands are well versed with seeking out Christmas and end-of-year sales, giving businesses like yours the opportunity to make some extra sales.
SHIPPING TO INDONESIA: CUSTOMS INSIGHTS
Required documentation
One of the essential licences needed to import into Indonesia is the Indonesian Tax ID Number (NPWP - Nomor Pokok Wajib Pajak) and the Single Business Number (NIB).
It’s important to be aware that new customs regulations were introduced by the Indonesian government in 2021. Cross-border businesses shipping to Indonesia will now need to contact the consignee to obtain their national Tax ID Number. This must be shared with the shipment carrier service and included on the shipment’s Air Waybill and Commercial Invoice.
In the absence of a Tax ID Number, private individuals (i.e. the consignee) can instead provide:
- Indonesian ID Number (NIK - Nomor Induk Kependudukan; for Indonesian nationals)
- Indonesian driver’s licence (for Indonesian nationals or foreigners)
- Passport number (only for foreigners)
To facilitate the customs clearance and declaration process in Indonesia, shippers must provide several documents, including:
- Commercial Invoice
- Air Waybill
- Bill of Lading
- Purchase order
- Packing list
- Certificate of Origin
- Receipt of payment of import duty and import-related taxes
- Other relevant permits that may be needed depending on the respective Harmonised System (HS) Codes. For example, for HS Code 9503.00.10 (tricycles, scooters, pedal cars and similar wheeled toys; dolls’ carriages), a survey report and SNI (Indonesian National Standard) certificate is required from the Ministry of Trade.
There’s a lot to remember, but DHL’s MyGTS (My Global Trade Services) can help. This free, user-friendly platform will guide you through all aspects of international shipping, including obtaining the necessary customs and trade documents.
Prohibited and restricted commodities
When importing goods into Indonesia, it is crucial to be aware of the restrictions and prohibitions on certain goods and commodities such as:
- Live animals, fish, or birds
- Blank, cancelled, or cashier cheques
- Electronic cigarettes
Furthermore, the Ministry of Trade has implemented Regulation 18, which prohibits the import of sugar, rice, and hand tools. By complying with all regulations, you can avoid your shipment being delayed or seized at customs. You can check import and export regulations of the destination country before you ship via MyGTS.
Several commodities are not permitted for shipment by DHL under any circumstances, following full consideration by the operational, legal and risk management teams. They include animals, hazardous or combustible materials, and illegal narcotics. Further information can be found here.
Indonesia import tax & shipping costs
Unless exempt, all imported commercial goods are subject to customs duties and taxes based on their Harmonized System (HS) Code tariff classification. Generally speaking, it is the Importer of Record (i.e. either your business or your chosen logistics carrier) who will pay the import duties and taxes. You can find the correct HS Code for your shipment easily via MyGTS.
Shipping to Indonesia: DHL’s expert tips
- Be sure to include the correct HS Code on your shipment paperwork to ensure a smooth customs experience. DHL’s MyGTS tool will help you find the right code easily, using keywords or the code directory.
- Consider shipping your goods as Duties & Taxes Paid (DTP). Whilst the payment of duties and taxes on international shipments is typically the responsibility of the receiver – i.e., your customer – DHL does offer a DTP service to account holders. This means DHL will invoice the shipper (your business) to cover the costs. The benefit of this is the end customer will not receive an unexpected tax bill when their package arrives at customs – which may damage their opinion of your brand.
Thinking of exporting to Indonesia?
You’re in the right place! We know that the above guidelines may seem a little overwhelming, but that’s where partnering with DHL will pay off. As international shipping experts, we’ll support you through all customs procedures so that your shipment avoids delays. Sell to the world with DHL!
Start your journey here1 – Statista, 2023
2 – Statista, 2024
3, 8 – J.P. Morgan, 2021
5 – SimilarWeb, 2024
6 – Statista, 2023
7 – Statista, 2023
9 – Statista, 2023