Navigating the import process to Indonesia for B2C purposes can be daunting. It requires understanding the items permitted for import into the country (link goes to Bahasa document) and acquiring knowledge of the importing laws (link goes to Bahasa document).

This guide will walk you through the intricate importing process for E-Commerce shipments to Indonesia and how to better prepare with time-saving practices.

You will learn the following:

Importing goods for E-Commerce shipments to Indonesia necessitates careful consideration of applicable laws, licensing requirements, restricted items, and requisite documentation.

Importing goods for E-Commerce shipment into Indonesia is subject to a complex set of import duties. Indonesia imposes import duties and taxes (link goes to Bahasa webpage) on goods valued from US$3 to US$1500 with tariff rates of 7.5% and 10% or more, depending on the HS code.

It is essential to mention that these regulations do not affect bags, shoes, and clothing and are subject to higher tax rates ranging from 15%-30%, with an 11% VAT and 7.5%-10% PPh of the import value if you do not have an NPWP, PPh subjects to 100% higher (2 times) (link goes to Bahasa webpage).

Certain products are subject to import regulations (link goes to Bahasa document) outlined in the Restricted and Banned Goods List, also known as the "LARTAS list"(link goes to Bahasa webpage). The Ministry of Industry, Ministry of Trade, National Agency of Food and Drug Control (BPOM), and Ministry of Communication and Informatics oversee products that fall under the LARTAS list.

Indonesia's customs require a local tax ID or alternative identification number for cross-border eCommerce shipments. However, customs authorities may request supporting documents, especially for first-time clients.

The supporting documents include Tax ID, identification document, proof of purchase, website link, and Personal Use form for medicine and supplements. Non-local tax IDs may use KTP (ID Card), Passport, or other identification numbers.

Here are the steps that we have simplified from DHL's comprehensive best practices for importing goods to Indonesia:

Identifying your goods categorisation is vital in importing goods to Indonesia. You must identify and verify the HS codes of the imported goods to correctly classify them and determine applicable taxes and duties.

An Importer of Record (IOR) is necessary for cross-border trade between parties in the service parts supply chain. Knowing your consignee (link goes to Bahasa document) or IOR and conducting due diligence is essential to ensure they are trustworthy and compliant with regulations.

Having visibility of the transport schedule is necessary to streamline the cargo manifest submission process and ensure the legal transportation of goods.

To establish the buyer and seller's responsibilities and calculate the applicable taxes and duties for cross-border trade, importers must understand the Incoterms, as varying laws and regulations across different countries can complicate international trade and logistics.

Importing goods to Indonesia is complicated, but you can manage the problem with a reliable logistic partner. By selecting a logistics partner compliant with all relevant regulations, you can ensure the import process runs to cost and is time-saving.

Luwjistik provides logistics companies with valuable tools and services to seamlessly and efficiently navigate local import rules and regulations across Southeast Asia.

If you encounter any issues during shipment, contact our support team at [email protected] for further information and assistance.