Market Information

Indonesia

Country cheat sheets that covers customs clearance and import duties for your e-commerce international shipping needs, eCommerce insights, and more

Indonesia's B2C Customs Clearance Info and eCommerce Insights

ID ID
Capital Jakarta
Official Language Indonesia
Currency Rupiah (IDR)
Population Size 267 millions

Indonesia’s E-commerce Market

Indonesia’s e-commerce market value is US$8 billion in 2017 and expected to grow tremendously to a range of US$55-65 billion by 2022 – nearly an eight-fold increase between 2017 and 2022, as reported by McKinsey.

This rapid growth of Indonesia’s e-commerce sector is supported by the increase of smartphone and Internet usage, a big population of 267 million individuals with increasing purchasing power, and a growing population of the young and tech-savvy.

Customs & regulations

Import Duty and Taxes

Indonesia maintains a de minimis value threshold of US$75 on inbound shipments. This means that shipments valued below this amount will not be subjected to taxes. An average import duty and tax will be imposed on products above US$75 which includes VAT, income tax and import duties.

Shipment value below US$75
Tax 0%
Shipment value above US$75
Value-Added Tax (VAT) 10%
Income Tax 7.5%
Import Duties 10-20%
Restricted and Forbidden Goods

Restricted items that must meet certain conditions before going through customs clearance:

  • Health & Beauty products that are applied directly to skin and for consumption

Prohibited items that cannot be imported into the country:

  • Narcotics and drugs
  • Pornographic materials
  • Politically sensitive materials such as printed papers and pictures
  • Firearms, explosives, ammunition (requires a special license)
  • Guns, sports weapons, hunting guns (requires a special license)

This list may change depending on government regulations. Visit official customs page for the latest version.

Documentation

Documents required by Indonesia’s customs clearance include:

1. Packing List

This gives product details, shipment volume in kilogram or cubic meter, and serves as a checklist to ensure shipment has been packed correctly or not.

2. Commercial Invoice

This gives total shipment value usually in US dollar. Helps to determine the import duties and taxes, and eligibility of shipment.

If you are shipping without a logistics partner that can clear customs on your behalf, you may need to include the following shipping documentation as well:

  • Certificate of origin
  • Bill of lading or airway bill
  • Insurance policy
  • Receipt of payment of import duty and import-related taxes (SSPCP)
  • Other relevant permits, licenses, and certificates

Additional information

Payment preferences: Cash On Delivery (COD)

Indonesia’s non-cash payment infrastructure is still in an early stage of development and consumers lack trust in online transactions. This contributes to cash-on-delivery being a common form of payment in the country. E-commerce sellers who wish to enter this market may want to consider offering this form of payment to attract more customers.

Non-working days in 2019

Saturday, Sunday and public holidays are non-working days. Please expect shipment delays on these days.

List of public holidays:

Date Holiday
Jan 1 New Year’s Day
Feb 5 Chinese New Year
Mar 7 Hari Raya Nyepi
Apr 3 Isra Miraj
Apr 19 Good friday
Feb 5 Chinese New Year
May 1 Labour Day
May 19 Waisak Day
May 30 Ascension Day
Jun 1 Pancasila Day
Jun 3-4 Cuti Bersama
Jun 5 Hari Raya Puasa
Jun 6 Hari Raya Puasa Holiday
Jun 7 Cuti Bersama
Aug 11 Idul Adha
Aug 17 Independence Day
Sep 1 Muharram
Nov 9 Maulidur Rasul
Dec 24 Cuti Bersama
Dec 25 Christmas Day

Market Opportunities

Popular E-commerce Item Categories

 

  1. Electronics & Media
  2. Fashion​​ such as lifestyle brands
  3. Health & Beauty such as supplements and cosmetics
  4. Mom & Babies
  5. Lifestyle Footwear
Popular Shopping Seasons

 

Event Name Event Period
Lunar New Year Usually in Jan or Feb
Lazarda Birthday Festival Apr 25-27
Tokopedia Anniversary Aug 17
Shopee Oct 10
Singles’ Day & Harbolnas Nov 11, Dec 12
Mother’s Day Dec 22
Ramadan Changes every year as it follows the Islamic calendar

Learn more about these events here.

Popular Shipping Destinations

 

EXPORTS
Rank Country
1 China
2 Japan
3 Singapore
4 United States
5 South Korea
IMPORTS
Rank Country
1 China
2 Singapore
3 Japan
4 South Korea
5 Malaysia
Sources:

McKinsey (2018) | Worldometers (2018) | Kontan.co.id (2018) | The Straits Times (2018) | Pos Indonesia (2018) | Emerhub Indonesia (2017) | Office Holidays (2019) | Statista (2018) | Frost & Sullivan “South East Asia Transportation and Logistics Market Forecast to 2018” (2017)

Updated as of 8 Dec 2018.

                               
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