Indonesia's vibrant and rapidly expanding economy presents many opportunities for businesses seeking to introduce high-quality European goods to a receptive market. With a growing middle class responsible for 38.3% of the total amount that households spent in 2024 and increasing demand for diverse products, Indonesia is an attractive destination for European exporters looking to extend their reach.
However, navigating the intricacies of international trade, particularly when importing from Europe to Indonesia, requires meticulous planning, a thorough understanding of customs regulations, and a reliable logistics service partner to ensure a seamless flow of goods. This is where DHL Express can take over to serve as your trusted partner in simplifying the import process so you can focus on capitalizing on the immense potential of the Indonesian market.
Understanding Indonesia's import landscape
To effectively engage in trade with Indonesia, a foundational understanding of its import landscape is crucial. This covers the key industries driving demand and the regulatory framework governing the entry of foreign goods.
Key industries and demand
Indonesia's dynamic economy is fueled by several key industries with a strong appetite for European imports. The manufacturing sector, a significant contributor to Indonesia's Gross Domestic Product (GDP), continuously seeks advanced machinery and equipment to enhance production efficiency and technological capabilities. The burgeoning pharmaceutical industry relies on high-quality European chemicals and formulations to meet the growing healthcare needs of the population. Furthermore, the expanding middle class drives substantial demand for diverse consumer goods, ranging from apparel and cosmetics to food.
According to the EU Trade and Investment with Indonesia 2023, key product categories in EU trade with Indonesia include machinery and transport equipment, manufacturing goods, and chemicals. These imports already make up more than 80% of the total EU exports to Indonesia in 2022 and highlight the specific types of products that European businesses are successfully exporting to meet Indonesia's industrial and consumer demands.
Import regulations and procedures
Navigating Indonesia's customs regulations is a critical aspect of successful importing, which involves adherence to specific rules and procedures overseen by various governmental agencies.
- The Directorate General of Customs and Excise (Direktorat Jenderal Bea dan Cukai or DJBC): regulates the flow of goods, ensuring compliance with customs laws and collecting duties and taxes.
- National Agency of Drug and Food Control (Badan Pengawas Obat dan Makanan or BPOM): Ensuring quality, safety, and efficacy of all pharmaceutical products and food items entering Indonesia.
- Ministry of Trade (Kementerian Perdagangan): Manages trade within the country and with other nations, licenses for exporters and importers, consumer protection, futures markets, and special economic zones.
- Ministry of Industry (Kementerian Perindustrian): Establishes standards and regulations for imported commodities from Europe and other regions within the industrial sector. It also ensures that industrial goods meet the required quality, technical, and safety specifications for use in Indonesia's industries.
- Ministry of Agriculture (Kementerian Pertanian): Regulates the import of agricultural goods, focusing primarily on biosecurity to protect Indonesia's agricultural ecosystem.
Top imported commodities from Europe to Indonesia
The trade relationship between Europe and Indonesia is characterized by a significant flow of specific commodities that cater to Indonesia's growing industrial and consumer needs.
Machinery and equipment
A substantial portion of imports from Europe to Indonesia comprises sophisticated machinery and equipment, including industrial machinery, manufacturing equipment, power generation machinery, and specialized tools. These imports support Indonesia's industrial development across various sectors, including manufacturing, construction, and agriculture.
Pharmaceuticals and chemicals
The demand for European pharmaceuticals and chemicals in Indonesia is steadily increasing, driven by a growing population and a focus on improving healthcare standards. Common imports include prescription drugs, over-the-counter medications, active pharmaceutical ingredients, and specialty chemicals used in various industrial processes.
Top 3 European Union (EU) countries importing to Indonesia
Several EU countries have established strong trade ties with Indonesia, becoming key players in supplying the aforementioned commodities.
Germany
German exports to Indonesia are diverse in January 2025, with a strong emphasis on machinery, particularly for electricity production and distribution, mining and quarrying, and construction. Additionally, pharmaceutical products constitute significant portions of German exports, reflecting Germany's industrial prowess and technological leadership.
France
France also contributes to the European export landscape to Indonesia in the 4th quarter of 2024, with a significant volume of leather and leather goods, food industry products, and electrical equipment. Then, in 2023, there was a surge in imports in different sections, such as aircraft parts, including gliders, balloons, and powered aircraft, and perfumes. Both imports reached US$165 million and US$64.6 million, respectively.
United Kingdom
The United Kingdom's (UK) trade relationship with Indonesia is evolving, with an increasing focus on high-value sectors. Key UK exports to Indonesia include delivery trucks and cars, reaching US$75.5 million and US$70 million in 2023, respectively. Moreover, packaged medicaments represent a growing area of trade between the UK and Indonesia, which was worth US$67.5 million the same year.
Step-by-step guide to importing from Europe to Indonesia
Successfully importing into Indonesia from Europe involves a systematic approach that includes documentation, logistics, and customs procedures.
Documentation and compliance
The foundation of a smooth import process lies in accurate and complete documentation. For companies in Indonesia engaging in import or export, the Indonesian Tax ID Number (NPWP - Nomor Pokok Wajib Pajak) and the Single Business Number (NIB) are required. Private individuals also primarily use the Indonesian Tax ID Number for these activities. However, Indonesian nationals have the alternative of using their Indonesian ID Number (NIK - Nomor Induk Kependudukan), while foreign individuals can use their passport number.
Aside from the identification cards, other essential documents typically include:
- Commercial invoice: A detailed bill from the European seller to the Indonesian buyer, outlining the goods, quantities, prices, and terms of sale.
- Packing list: A comprehensive list detailing the contents of each package, including weights and dimensions.
- Certificate of origin: A document certifying the country where the goods were produced, which may be required for preferential tariff treatment.
- Bill of Lading (for sea freight) or Air Waybill (for air freight): The transport document serves as a shipment receipt.
- Import license: Depending on the specific imported goods, an import license issued by the relevant Indonesian authorities, such as the Ministry of Trade may be required.
Shipping and logistics
Choosing the right shipping method from Europe is a critical decision based on factors such as the type of goods, urgency, and cost considerations. Common options include:
- Air Freight: Ideal for high-value, time-sensitive shipments, offering faster transit times but typically higher costs.
- Sea Freight: Suitable for large, less time-sensitive shipments, offering cost-effective transportation for bulk goods.
- Express Delivery: A convenient option for smaller, urgent shipments, providing door-to-door service with efficient transit times.
Partnering with a reliable logistics partner is essential to manage the complexities of international transportation, including coordinating pickup, handling documentation, and ensuring timely and efficient delivery to Indonesia.
Customs clearance and delivery
The customs clearance process involves presenting the required documentation to the Indonesian customs authorities to inspect and assess duties and taxes. Presenting everything needed is crucial to avoid delays, penalties, and potential seizure of goods. Importers should thoroughly research the specific requirements for their commodities and ensure all documentation is accurate and submitted correctly.
To minimize delays and avoid penalties, importers should:
- Ensure all documentation is complete and accurate.
- Understand the applicable tariffs, duties, and taxes.
- Comply with all inspection requirements.
- Work with a knowledgeable customs broker if needed.
Simplifying your imports from Europe
The Indonesian market presents significant opportunities for businesses looking to import high-quality goods from Europe. However, navigating the complexities of importing from Europe requires a thorough understanding of Indonesian customs regulations, efficient logistics, and a reliable partner.
DHL Express possesses unparalleled expertise in navigating the intricate landscape of international logistics services, making us the ideal partner for importing goods from Europe to Indonesia. Our expertise in customs regulations and procedures ensures a smooth and compliant import clearance process, minimizing the risk of delays and complications. By partnering with us, you also gain access to our international shipping rate calculator, competitive shipping rates, and advanced global shipping tracking systems, providing you with real-time visibility and complete control over your shipments every step of the way.
Take the first step towards expanding your business horizons. Open a DHL Express Business Account today to explore DHL Express's tailored import and export solutions and unlock a world of seamless international trade.
