International Shipping from Australia to Indonesia: an eCommerce Guide

Benedict Leong

With 175.4 million internet users in 2020, Indonesia stands out as the largest eCommerce market in Southeast Asia. With its eCommerce industry expected to grow to USD 50 billion by 2024 from its 2020 value of USD 26 billion1 this market should be on every cross-border eCommerce merchant’s list.

In Indonesia, most eCommerce purchases take place within the Greater Jakarta region, also known as Jabodetabek. Jabodetabek is a portmanteau of its territories, which include Jakarta, Bogor, Depak, Tangerang, and Bekasi. This metropolitan area is a 8-hour flight away from Sydney, and is the most populous area in Indonesia. Because of the developed infrastructures in place, the region is able to support eCommerce transactions and deliveries to its residents.

New clothes are particularly important during festive periods like Ramadan, and Indonesians shop online for the convenience it provides as well as the savings gained from purchasing bundles. To find out more insights like these about this market, check out our country guide to Indonesia.

If you’re looking to expand to Indonesia via cross-border eCommerce, it makes sense to test the market first through cross-border shipping before committing to heavier commitment supply chain strategies like local distribution.

But how exactly do B2C parcels from Australia reach Indonesia?

Shipping Your B2C Parcels from Australia to Indonesia in 4 Steps

While finer details can differ between shipping partners, B2C parcel shipments tend to follow similar steps. If you’re shipping with Janio Asia, here’s how your parcels will be delivered from the Land Down Under to Jabodetabek in Indonesia.

Infographic showing how parcels are shipped from Sydney, Australia to Jakarta, Indonesia - also showing the list of customs documentation required for Indonesian import clearance for direct to consumer parcels

 

First Mile Delivery

First mile delivery in international delivery refers to when your parcel or shipment leaves the origin address to head to the port, airport or origin warehouse. If you’re using Janio Asia’s international parcel deliveries for your eCommerce goods, the airports we currently uplift from include Sydney Airport (SYD).

During the first mile delivery stage, your parcels need to be consolidated and palletized together with other Indonesia-bound shipments to prevent them from bouncing around due to events like turbulence during flights. If you’re using a shipping partner, your shipment will be delivered to their warehouse for this process first. If you’re shipping with Janio, you can drop your parcels off at our designated warehouse Sydney.

If you’re using the transhipment arrangement via Singapore with us, you won’t need to make any adjustments or prepare any additional documents as our team will prepare what’s necessary for the Singapore leg of the delivery. Your shipping documents like the shipping label and commercial invoice should still have the address and details of your consignee in Indonesia.

To further minimise damage to your goods during transit, it’s recommended to have sufficient padding for your items, such as bubble wrap, packing peanuts or cardboard inserts. To get a more detailed packaging guide, check out our packaging 101 guide.

On top of that, your parcels need to be labelled clearly and associated customs documents must be accessible for customs inspection. Check out some of the best practices for labelling your shipments along with our other B2C shipping tips, too.

Terminal Handling, Origin Customs Clearance and Line-Haul

After your parcels have been consolidated at the warehouse, they’ll head to your shipping partner’s air cargo agent’s warehouse at their respective airports for terminal handling.

Terminal handling includes weighing and inspection of the cargo, tallying your shipment’s items with the commercial invoice and packing list along with checking that all required customs documents are in order. If your items weren’t palletized at the warehouse earlier, they’ll be palletized here before going through customs clearance.

To get your goods cleared for export, your shipment usually needs to have these documents:

  • Commercial invoice
  • Packing list
  • Airway bill
  • Export permit and Export Declaration (if needed)

Depending on what you’re shipping, you may need an export declaration and an export permit. Generally, goods intended to be exported from Australia need an export declaration if the goods:

  • Have a value of more than AUD 2000
  • Need an export permit (regardless of their value)

You can check out when goods are exempted from export declarations, and how to lodge export declarations on this Australian Border Force page.2 If you’re unsure about these processes, you can look out for a shipping partner who’s experienced in multiple countries’ customs procedures, like Janio Asia, to help guide you through the processes. To find out more, reach out to us via the banner below:

Need to Ship to Southeast Asia via Sea, Air or Cross border Trucking? Get a quote here!

You’ll need to ensure your shipment doesn’t contain prohibited items like cultural and heritage goods or wine and brandy. To be safe, you can check out the list of items that are prohibited from export and import in Australia on the Australia Border Force prohibited goods list.3

Once your shipment has been cleared for export, your parcels will be uplifted onto a plane headed to Indonesia.

Alternatively, if you’re using transhipment via Singapore with your partner, your plane will head to Changi Airport (SIN) in Singapore instead. In Singapore, our team will handle clearance and transfer your items to our Free Trade Zone warehouse to consolidate with other Indonesia-bound shipments. Later, your shipment will be uplifted to onto a plane headed for Soekarno-Hatta Airport (CGK).

Destination Customs Clearance in Indonesia

Once the plane carrying your goods lands in Soekarno-Hatta Airport (CGK), your shipment will be transferred to a customs warehouse.

To clear Indonesian Customs, you or your shipping partner will generally need to provide the following documents:

  • Commercial Invoice
  • Packing List
  • Airway Bill
  • Insurance Policy (if any)
  • Other relevant permits, licenses, and certificates
  • Documents and Input needed by the Consignee:
    • PUF (Personal Use Form)
    • Copy of ID Card (e.g. Driving License/ Passport/ Temporary ID for Expats)
    • Tax ID (NPWP, if any)
    • Website link
    • POP (Proof of Purchase and Proof of Payment)

In Indonesia, the consignee needs to provide some extra documentation for tax purposes, in particular their Tax ID, known as their Nomor Pokok Wajib Pajak (NPWP). Other documents are used for verifying their identity as well as the eCommerce transaction.

The Directorate General of Customs and Excise of Indonesia uses the Cost, Insurance and Freight (CIF) method to determine the customs valuation of your shipment. This includes the cost of the goods themselves, and the cost of freight and insurance for the shipment.

If your item is below Indonesia’s de minimis rate of USD 3, then there would be no need to pay additional import duties and taxes to the customs office. The de minimis rate refers to a value threshold where fewer or no duties and taxes are charged if the shipment’s CIF value, which includes your good’s price, shipping fee, and insurance costs if any, is below that point.

However, this only applies to goods that are delivered via air freight. Earlier in 2020, the Indonesian government revised their de minimis rates down from USD 75. To find more information about this regulatory change, you can read our article here. Items below the de minimis of the current USD 3 just require a VAT payment of 10% of the order valuation.

On the other hand, if your goods exceed the de minimis threshold or are imported by means other than air freight, higher import duties and taxes will be levied on your shipment. You would have to pay a value-added tax (VAT) at 10%, and the import duties and income tax depend on the product category as declared by the harmonised systems code (HS code). You may find out the percentage of your import duties paid through Indonesia’s Directorate General of Customs and Excise website.4

In 2020, the Indonesian government has provided temporary duties and tax exemptions on products meant to combat the virus, such as hand sanitisers and personal protective equipment to respond to the challenges faced this year. You can find out more information in our article on this temporary regulation.

If you’re shipping a B2C parcel, you can choose to either pay for the import duties and taxes yourself or let your customers pay for the import duties and taxes — also known as Delivered Duties Unpaid (DDU) and Delivered Duties Paid (DDP). While it is encouraged to opt for DDP (i.e. account for the duties and taxes yourself) to keep your shipping experience smooth for your B2C customer, it would still be good for you to understand what these arrangements mean.

When shipping a B2C parcel internationally, you can choose to either pay for the import duties and taxes yourself or let your customers pay for the import duties and taxes. This is determined by the Incoterms Delivered Duties Unpaid (DDU) and Delivered Duties Paid (DDP). While we strongly encourage you to opt for DDP to keep your shipping experience smooth for your B2C customer, it helps to familiarise with what these arrangements mean.

After customs clearance is done, your shipment will be sent to your logistics service provider’s local warehouse where it will undergo sorting and distribution.

Distribution and Last Mile in Indonesia

After going through Indonesian customs, your delivery enters the distribution stage. If your shipment’s address is not quickly reachable via land transport, it will go through another domestic line-haul flight first.

International B2C deliveries will have to be first sorted at your shipping partner’s warehouse prior to last mile delivery. Your parcels in the last mile delivery stage will be sent from your partner’s warehouse in Indonesia to your consignee’s address usually via vans. During the last mile delivery stage, your logistics service provider will ensure that your shipment is received by your consignee with multiple delivery attempts if the first one fails.

The general steps for international B2C deliveries are similar, but Southeast Asia is home to many countries each with their own customs regulations and local subtleties when it comes to deliveries. Now that you’re armed with knowing how to ship from Australia to Indonesia, you’re in a better position to choose the right shipping partner.

 

Whether you’re looking for an air freight solution, a sea freight solution or even both to Indonesia, Janio’s flexible, end-to-end delivery solutions have you covered from the first mile to the last. To find out more about our services and customs clearance expertise, contact us via the banner below:

Need to Ship to Southeast Asia via Sea, Air or Cross border Trucking? Get a quote here!

References:

  1. Statista: eCommerce in Indonesia 
  2. Australian Border Force – Export declaration 
  3. Australian Border Force – List of prohibited items 
  4. https://www.beacukai.go.id/btki.html 

 

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