International Shipping from Indonesia to Australia

Benedict Leong

International Shipping from Indonesia to Australia Key Visual with View of Sydney opera house. Click here to get a quote today!

This is the Indonesia origin version of this lane. We also have available Singapore and Malaysia origin versions of this lane and blogost. 

Australia saw an explosion of online shopping demand in 2020 and a lot of that momentum was maintained in 2021. December has traditionally been Australia’s biggest shopping month, but recent events are shifting the peak closer to November when Black Friday takes place. You can find out more details about this and other insights like what Australians are buying in our recently updated Australia eCommerce Snapshot.

If you’re an Indonesia-based business looking to ship cross-border to Australia, read on to find out how shipping from Indonesia to Australia works below.

Getting Your Products into Australia via International Air Freight

Cross-border or international shipping means that your inventory will be based in Indonesia and products will be sent overseas to Australia. As speed is key for cross-border eCommerce, sending your products to Australia via air freight is the best way to go.

Local distribution, on the other hand, sees your products warehoused in Australia for faster delivery to your target market. Stocks are shipped in bulk to the store and deliveries of individual parcels are fulfilled via the local warehouse or distribution centre.

However, there are some differences to note between shipping in bulk and shipping loose parcels via air freight.

Differences to note between air freight for parcels and bulk orders

B2C air freight shipments tend to face fewer hurdles as they are shipped to individual people compared to bulk shipping to businesses. These shipments tend to be below the customs’ de minimis rate of the destination country which means they need less customs documentation and pay less import duties and taxes.

The minimum documentation needed are usually commercial invoices and packing lists. Australia’s de minimis value as of the time of writing is AUD1000.

Bulk orders face more regulation. These orders are usually imported by enterprises and businesses who need to be registered with local authorities. Your importing party also needs to have import licenses as well as other permits with relevant authorities at hand to clear destination customs clearance. These orders are subject to duties and taxes depending on their customs valuation and the type of goods shipped.

While import licenses may not be necessary to import most goods into Australia, parties importing restricted or controlled items still require the importer to register for permits with relevant local authorities.

How does air freight from Indonesia to Australia work?

If you’re shipping to Australia from Indonesia with Janio, your shipments will be flown out from Soekarno-Hatta International Airport (CGK) in Indonesia to Sydney Airport (SYD) in Australia. Janio also offers transhipment services via Singapore into Australia.

But before you begin preparing your parcels for Australia, it helps to know which imports are restricted and prohibited in that country. You can check our recent article on Australia’s restricted and prohibited imports for more info.

Sydney is used as Janio’s primary gateway into Australia for its connectivity to various countries such as Singapore and the frequency of flights for this lane.

Infographic with map showing how parcels enter Sydney Airport, Australia from Indonesia along with required customs documentation

Need to Ship to Australia? Sea, Air or Land, we've got Freight that takes you forward

While the logistics supply chain from Indonesia to Australia can vary depending on your requirements, shipping via air freight usually follows these steps:

  1.  Collection – Depending on your arrangement with your shipping partner, your shipping partner collects the goods from the origin address or you drop off the shipment at a designated point. The origin address could be your supplier’s address or your own warehouse in Indonesia.
  2. Consolidation – loose parcels need to be palletized and packed together with other shipments so they don’t bounce around or take up too much space in the plane’s cargo hold. If you’re working with a shipping partner, this will take place at their warehouse.
  3. Terminal Handling at the Origin Airport – The shipment is sent to your shipping partner’s air cargo agent’s warehouse. Here, weighing and inspection of the cargo, tallying up the items with the commercial invoice and packing list and checking all the necessary shipping documents take place.
  4. Origin Customs –  Your goods and documents are then inspected by customs clearance officers in Indonesia and are cleared for export by Indonesia’s Directorate General of Customs and Excise.
  5. Uplift and Mid-mile – Your order is loaded onto the plane and it takes off for Australia
  6.  Destination Customs – Once the shipment reaches Sydney Airport, officers from the Australian Customs and Border Force will inspect and clear your shipments for import.
  7. Sorting and Distribution – Loose parcels are moved via vans or trucks to the transport logistics hub, where they are sorted and dispatched to their relevant destinations. Bulk shipments can be delivered straight from the airport.
  8. Last-mile delivery – After sorting, the shipments will be transported to your consignee’s address

This guide will cover how these steps apply to an air freight shipment being shipped from an address in Jakarta to Australia.

Need to Ship to Australia? Sea, Air or Land, we've got Freight that takes you forward

First mile delivery in Indonesia

The first mile stage is where the shipment leaves the origin address to your logistics service provider’s warehouse, be it a distribution centre or sorting hub. The origin address is where your inventory is initially stored, such as your office, warehouse, or your supplier’s address. Depending on your arrangement with your logistics service provider, your shipment will be picked up by your shipping partner or dropped off at your partner’s designated location.

Packaging and labelling are key to a successful delivery. Packages may sometimes go through bumpy rides like turbulence. Having extra padding for fragile items like bubble wrap and packing peanuts is recommended to prevent your products from getting damaged during shipping. To learn more about the best practices in packaging your goods, we’ve covered this topic in our packaging guide.

Labels should be visible, legible and easily accessible by your shipping partner and customs officials after being transported to the destination airport. You can check out our guide on labelling your shipments which you can also find in our resources for B2C shipping to Southeast Asia.

If your shipment is a loose parcel, it has to be consolidated on a pallet at your shipping partner’s warehouse together with other packages heading to the same destination country before it can be sent for terminal handling and customs clearance at Soekarno-Hatta International Airport. As B2B shipments are already consolidated, the shipment can be transported directly to the airport for customs clearance.

Terminal handling and origin customs clearance in Indonesia

After collection and consolidation your shipment will be sent to an air cargo agent’s warehouse for terminal handling at Soekarno-Hatta International Airport.

Terminal handling includes weighing and inspection of the cargo, tallying up the items with the commercial invoice and packing list and checking that all required customs documents are in order. If your items haven’t been palletized yet, it’ll be palletized at the air cargo agent’s warehouse before being sent for customs clearance.

Once this is done, your goods will be cleared for export by officers from the Indonesian Directorate General of Customs and Excise. The kinds of documents that you’ll need to prepare for export customs clearance depends on the size of the shipments

To get your goods cleared for export, your shipment usually needs the following documents ready:

  • Commercial invoice
  • Packing list
  • Airway bill
  • Insurance certificate (if applicable)
  • Certificate of origin (if applicable)

If you’re exporting in bulk (B2B amounts) then you may need the following additional documents:

  • Export Permit
  • Export Declaration of Goods (PEB)
  • Nomor Pokok Wajib Pajak (NPWP, a taxpayer number)
  • The exporter of record (usually your company) is a Legal Entity in Indonesia, in the form of either:
    • CV (Commanditaire Vennotschap)
    • Firm
    • PT (Limited Liability Company)
    • Persero (Limited Liability Company)
    • Perum (Public Corporation)
    • Perjan (Departmental Company))
    • Cooperative
  • Having licenses applicable to the export issued by the government, such as:
    • Trading Business License (SIUP) from the Department of Commerce
    • Industrial License from Department of Industry
    • Domestic Investment Business License (PMDN) or Foreign Investment (PMA) issued by the Investment Coordinating Board (BKPM)
    • Export Identity Number (APE)

If you’re unsure about the kinds of documents you need to prepare for either B2B or B2C export clearance for air freight, our experienced customs clearance teams can give you a hand.

Uplift and Mid-mile

After getting cleared for export, your order is uplifted onto a plane and leaves Indonesia, bound for Sydney Airport for direct injection into Australia.

Need to Ship to Australia? Sea, Air or Land, we've got Freight that takes you forward

Customs Clearance in Australia

After landing in Sydney Airport, your items will be inspected by officers from the Australian Border Force (ABF) before it can be cleared for import into Australia.

In Australia, customs clearance of your parcels will normally require 1 to 2 days.

The information below needs to be provided with your customs documentation:

  • Shipper’s & consignee’s phone number and address
  • Certificate of Origin match with house invoice or commercial invoice
  • Incoterm used – e.g. FOB, CIF
  • Retail price of good (transaction value/ FOB value) plus cost of freight
  • Correct Currency and Photos of the goods
  • If needed provide Purchase Order number and reference number (if needed for larger eCommerce marketplaces or enablers that are already registered with Australian Customs and Border Force)
  • These will then be pre-audited by Janio customs partners

To get import clearance into Australia, your shipment will need to have the following documents prepared:

 

  • Air waybill
  • Packing list
  • Commercial invoice
  • Certificate of origin (if applicable)
  • Insurance policy (if applicable)
  • Other relevant permits, licenses, and certificates for certain product types
  • Import Declaration (N10) – Post (B374 Form) – for goods above AUD1000 or controlled items, including those that arrive via courier or post
  • Self-assessed Clearance form – for goods under AUD 1000 but arrive via air or sea cargo

Australia’s de minimis and customs duties

Starting from 2018, people in Australia need to pay 10% GST on overseas eCommerce purchases. According to the Australian border force, these taxes should be collected by the eCommerce merchants outside Australia at the point of sale.

To check if you need to collect GST at the point of sale, you need to earn AUD 75,000 in revenue in the last 12 months from selling to Australia. If you’ve crossed this threshold, you need to register for GST in Australia and begin collecting the amount. You can check more details on this from the Treasury of Australia and Australia Border Force 1 & 2.

The GST is calculated using the customs value of the goods added with the cost of overseas freight and insurance. The customs value itself is calculated using the ‘transaction value’ which is the price of the goods itself together with costs incurred after importation such as inland freight and inland insurance costs. For official examples for these, you can check out our article on Australia’s de minimis and prohibited imports.

The above is intended to serve as a guide and not legal or financial advice. For a full breakdown of these definitions, please refer to Australia’s Customs Act 1901 Section 159 for customs value and 161 for transaction value.

When import declarations are required

Importing into Australia doesn’t usually require an import license unless you are importing certain goods like tobacco or alcohol. These products also incur customs duties and taxes at the border as well.

If you’re sending an item below AUD1000 into Australia by courier or post, your purchasers do not need to fill in the Self-Assessed Clearance form (SAC).

The SAC is needed if your goods are valued at or under AUD1000 but arrive via air or sea cargo. You can find out about the different SAC’s on the Australian Border Force’s page on import declarations.

On the other hand, if an import is above AUD1000, the order will incur an import processing charge. Orders above AUD1000 will require the purchaser or importer to fill in a full Import Declaration (N10) form. They will also be notified by the Australian Border Force that they need to pay any import processing charges or customs duties and taxes. You can find the full list of duties and taxes for your type of goods or HS Codes on this Australian Border Force page.

After the order has been cleared for import into Australia, the order will be ready for distribution and last mile delivery.

Distribution and Last Mile in Australia

The last mile delivery stage of the journey is where your delivery goes from the destination warehouse to its final address. During the last mile delivery stage, your logistics service provider will ensure that your shipment is received by your consignee.

Janio’s extensive partner network can help you deliver anywhere in Australia. If your order’s destination address is reachable by vans or motorcycles, your order will be taken to your logistics service provider’s warehouse first to be deconsolidated from its pallet if required, then sorted to the vehicle that will take the order to your customer.

If your destination within Australia is fairly far from the destination airport, it may need a domestic flight or a boat ride to get there. After this trip, the order will head to your shipping partner’s warehouse to prepare for the last mile trip via vans, or motorcycles as highlighted above.

Now that you know how you can use air freight to deliver your eCommerce products from Indonesia to Australia, you’ll need a flexible shipping partner who’s got your eCommerce logistics and international shipping needs covered from first mile to the last. Contact us below to find out more about how we can help you or if you’d like a shipping quotation to Australia, Southeast Asia or beyond.

Need to Ship to Australia? Sea, Air or Land, we've got Freight that takes you forward

References:

  1. Imports Into Australia – GST Changes | Tax Alert – March 2018 | Deloitte New Zealand
  2. The Treasury of Australia – Applying GST to low value goods imported by consumers – Q&A
  3. Australia Customs and Border Service – GST and other taxes when importing
  4. Australia Customs and Border Service – Valuation of Imported Goods
  5. Australia Customs Act 1901
  6. Australia Border Force – Import declarations
  7. DEPARTMENT OF IMMIGRATION AND BORDER PROTECTION NOTICE No. 2015/44 3
  8. Australia Border Force – Current tariff classification
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