Are you frustrated with the complicated systems and ways to ship your products to Indonesia? Or with high price per kg shipment by air, tedious and complicated custom in Indonesia? Or else, the system of “Red Light” and “Green Light” that your forwarder offers you as sometimes there isn’t any sure matter when or how long your goods will arrive in Indonesia?
Or have you been shipped some goods to Indonesia before and looking around whether any rules change? Well, look no more, on this page we will tell you exactly what is the best solution for your needs.
Shipping to Indonesia always been a hot topic, as competitive it can be, the international shipping service keeps offering services to cater for the no 16th largest economy in the world. International shipping service around the world currently is on demand and becoming the needs of customers due to the globalization era and the big 4 dominated parcel delivery service globally with almost 80 percent of the market share between them, they are the infamous DHL, FedEx, UPS, and TNT.
As in the e-commerce economy, Indonesia has around 150 million users of the internet and the transaction for e-commerce in a total of USD 24 billion, the largest in South East Asia as the overall growth of the digital economy in Southeast Asia reached US$72 billion for 2018.
Few challenges for customers on ordering goods to Indonesia are:
- Many sites registered overseas do not recognize Indonesia registered address to send the packages due to the high case of credit card fraud.
- The expense of shipping is quite expensive if you ship by the big 4; DHL, FedEx, TNT, and UPS.
- Difficulties in clearing the customs clearance in Indonesia with a lot of bureaucracy.
- Perception on high taxes as more than 1 tax you need to pay when you import the goods to Indonesia. Few are import tax, VAT tax, income tax, additional of luxury goods tax (if your goods under categorized of luxury goods).
In Indonesia, with the current leadership of government, Indonesia keeps increasing its development in logistics infrastructure. An efficient logistics infrastructure is able to help decrease the pre-sales cost and increasing the national economy with a better flow of goods.
With the expectation of increasing year to year growth of double-digit in every year in regards of logistic and delivery business in Indonesia, government are able to add more 27 ship ports across Indonesia, 11 new airports, and trans java road been almost completed, with current development, you only need 10 hours to travel between Jakarta to Surabaya compared to almost 2-3 days previously without the toll road. Which able to cut the logistic charges in Java island, the most populated island in Indonesia where the economy of Indonesia lies.
As Indonesia has thousands of islands, it is quite difficult to cater to the Indonesia market but as for now, the shipping market concentrated only around Jakarta and Greater Jakarta withheld around almost 50-60 percent of deliveries across Indonesia.
How the knowledge of express shipping industry able to help me?
Well, at least it might help you to understand the background of the import and export industry of express shipping services and you able to understand as well why shipping to Indonesia can be categorized as expensive, slow, and difficult.
Import express shipping business helps the overall economy direct and indirectly. Import express shipping even able to help companies across the industry to increase their effectivity with precise express shipping needs based on the requirement for each company.
Here are a few functions of the shipping company for the larger economy in the nations:
- Express shipping company are able to network and reach world economy globally
With the globalization, the express shipping company able to help individual or companies to ship the product globally and connect the countries in regards to indirect trade for the buying and selling process.
- Expertise to navigate for import and export custom regulation
The express shipping company has a competitive advantage in regards to the import and export custom regulation based on the company operate. Even so, the big 4; DHL, UPS, FedEx, and TNT dominate the market globally, each express shipping company should be able to give an explanation and understand better the customs regulation regionally.
That is why a customer needs to find a company that has better knowledge in regards to customs regulation.
- Overall cost savings for companies in the system of distribution
Nowadays, express shipping company able to help the industry which operates drop shipping services to the customer. The company does not need to have a lot of stock of goods standing by, the express shipping company able to help the company calculate the procurement and warehouse system for companies to deliver directly to the customer. (business to customer)
What actually the Indonesian government needs to improve for the development of the express shipping service industry that able to decrease the cost of shipping for the customer?
- The Indonesia government needs to improve border clearance procedures and make the industry thrive and increase the aviation industry as well to help express delivery service to thrive.
- The government needs to keep improving the infrastructure of logistics as well and ease of investment regulation in the industry of express shipping services in Indonesia.
- Indonesia government needs to have fair competitiveness and avoid monopoly of postal services in Indonesia by Pos Indonesia. As in the example of delivery of letter or importation by Express Mail Services worldwide.
- Indonesia needs to integrate more in regards of the customs clearance procedure with at least the South East Asia region to be able to increase the economy with the help of Free Trade Agreement between countries around South East Asia.
- Indonesia needs to decrease the regulations, barriers, and bureaucracy and simplify the process of importation to Indonesia.
What custom and duty department needs to improve to have a faster shipping service in import?
The main barrier, for now, to import goods to Indonesia is the customs clearance. It is difficult, slow, and expensive. That is why a lot of companies or customer does not want to have interaction with customs clearance officer. Average customs clearance times were 4 days at airports, and 8 days and 5 days respectively for LCL (Less than Container Load) and FCL (Full Container Load) shipments at seaports.
Few setups that actually custom and duty agency needs to improve to thrive the market are:
- Establishment of the minimum tax levy that needs to be increased. For now, it is only USD 75 but in the future, customs need to consider increasing the minimum tax levy at least USD 250 (same as Singapore) to increase the shipping order to Indonesia directly. As with higher tax levy, more influx of goods will be increased.
- Risk Management. Custom and duty agencies need to keep improving the technology of importation across the border as to ease the burden to check the parcel of goods one by one which makes the time of delivery delayed. Further technology advancement needed and to be improved on a timely basis to avoid any illegal goods bypassing the custom.
- Custom and duty department in Indonesia need to synergize with other ASEAN countries around the region in terms of regulations, barriers to entry, technology, and cooperation between custom and duty agency. With the synergize cooperation, the flow of the goods between countries around the region can be increased as fewer checks and more shipment movements are at ease.
- The issuance of import permit needs to speed up based on the industry standard to smoother the process of goods imported to Indonesia. With the quick response and easy of import permit issuance, the flow of goods can be improved as well.
Well, as some things need to improve to create a shipping economy that can be cheaper, faster, and simpler, there is some time needed for the Indonesian government to able to fulfill the recommendation for the better future of the shipping ecosystem.
Meanwhile, no more shipping problems for you if you ship with us, SindoShipping, best freight forwarding service to Indonesia. We offer you the best guarantee service to ship your valuable products to Indonesia and we understand how time is important beside pricing for you, our customers.
For companies, few benefits in using our service are:
- No large inventories needed as with express delivery service, you always can send the goods right on time while you needed and expand your finance for your inventories.
- Less spending on warehousing for your products or stocks as with express delivery service, you will have fewer inventories and stocks and saving on your finances to rent a warehouse for storage.
- Less cost involved in total producing cost. With less spending on warehousing and inventory, the cost of production becomes less and able to make the price of goods more competitive in the market.
- Less production interruption due to a shortage of stock. Shortage of stock means a lot of problems for the company as no goods to sell and no income produced. Stock and inventory management needs to be arranged and we can help you with express delivery services.
- Become more effective and productive as with our service, your company able to cater to research and department need as well in the
Few services we provide for health-related companies are:
- Help arrange delivery for clinical trials and samples. The service that we provided is valued based on the promised time we quote to the customer as the deliveries can be time critical for the companies.
- Deliver highly classified and proprietary legal documents and patent applications. As we understand how important the document or packages be delivered in a time crucial basis, we also valued how important your content of delivery for your company.
- To ship urgently needed drugs to hospitals or individuals. It is important to understand how the express delivery shipping able to affect someone’s life in need and the effect of the precious time deliveries for such an important cargo.
- Maintain stock-management practices for laboratories and research development. We understand how important it is for the laboratories as the stock of the sample or chemical needs to keep replenished in time to avoid any interruption on research that been conducted.
Our team in SindoShipping is committed to providing the best service for you and your company and our professional team has been trained in providing the best solution for with the request from the customer.
What is the benefit of using the SindoShipping service as your import shipping company?
- We provide one of the affordable airfreight services from Singapore (as our shipping hub and port) to Indonesia without any hassle with our customs clearance brokerage shipping service.
- Our service is a door to door (no hassle) service from any part of the world to Indonesia so you can have ease in shipping your shipment to Indonesia. From any other countries, you also can send to our registered Singapore address to be forwarded to Indonesia.
- Free to use Singapore address for shipping purposes and order products worldwide. As with the shipping hub status and where the big 4 express shipping company worldwide (DHL, FedEx, UPS, and TNT) have the regional office, Singapore address is well known for all over the world.
- Track and trace technology. Our customer does not need to worry in regards to lost tracking of the goods as our service provided with tracking technology in real time.
- Our speed of delivery and reliability is proven since 2001 as we have learned a lot from the experience. Always look for the express shipping company with experience to make sure your goods will be taken care of and you will have ease of mind that your goods are in the good hand.
- We help you with our brokerage customs clearance services. Our service includes the brokerage service with customs in Indonesia to help you clear the customs with proper documents and legal tax need to be paid.
- We have the lowest minimum kilogram for shipping in the market with only 1 kg only (when you ship to our warehouse in 12 Jalan Arnap, Singapore) compared to other shipping agencies in Singapore with usual of 10 kg minimum.
- Furthermore, we provide one of the fastest shipping periods in the market (4-5 days guarantee shipping service to Jakarta from Singapore including customs clearance in Indonesia)
SindoShipping, surely the simplest way to ship your products to Indonesia. WhatsApp to start shipping with us or inquiry to +6281296055142 (Andrew / Heru).
Read in Bahasa: Bagaimana cara melakukan pengiriman barang dari luar negeri ke Indonesia yang murah dan cepat?