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. 

Why many sites registered overseas do not recognize Indonesia registered address to send the packages due to the high case of credit card fraud?

The global e-commerce market has grown exponentially over the past decade, reaching a valuation of $5.7 trillion in 2022, with expectations to reach $6.5 trillion by 2023. This explosion in online shopping has created an interconnected web of consumers and businesses spanning across borders, making it easier than ever for consumers to access goods from around the world. However, this rapid expansion has also exposed vulnerabilities in the system, particularly concerning payment security. One significant issue that has arisen is the reluctance of many overseas websites to recognize and ship to Indonesian addresses, often citing high instances of credit card fraud as the primary reason.

Indonesia is Southeast Asia’s largest economy, with a population of over 270 million people. The country’s burgeoning middle class and increasing internet penetration have made it a promising market for e-commerce. In 2023, the e-commerce market in Indonesia was valued at approximately $60 billion, with projections suggesting it could surpass $80 billion by 2025. Despite this potential, many international e-commerce platforms remain wary of engaging with Indonesian consumers due to concerns over fraudulent activities. This hesitancy is not unfounded, as Indonesia has historically ranked high on the list of countries with significant credit card fraud cases.

Credit card fraud is a global issue, with estimated losses worldwide reaching $32 billion in 2021. Indonesia, however, has been particularly affected, with fraud rates that far exceed the global average. According to data from the Indonesian Credit Card Association (AKKI), fraud cases in the country increased by 20% in 2022 alone. This surge can be attributed to several factors, including weak regulatory frameworks, a lack of consumer education on secure online practices, and sophisticated criminal networks that exploit these weaknesses. As a result, many international retailers and e-commerce platforms have chosen to err on the side of caution, either refusing to ship to Indonesian addresses altogether or requiring additional verification steps that are not imposed on customers from other regions.

This reluctance has significant implications for the global e-commerce market and for Indonesian consumers. For one, it limits the reach of international brands in a rapidly growing market. Companies like Amazon, eBay, and Alibaba have seen substantial growth in other parts of Southeast Asia, but their penetration in Indonesia has been stymied by these security concerns. This, in turn, affects the overall market size and potential revenue that these companies could generate. Furthermore, it also limits the choices available to Indonesian consumers, who may find themselves unable to purchase products that are readily available to consumers in other parts of the world.

The trend of excluding or heavily scrutinizing Indonesian transactions is not limited to small or niche websites but also extends to major global brands and platforms. For example, many fashion retailers, electronics stores, and even subscription services like Netflix and Spotify have encountered issues with processing payments from Indonesian credit cards. This trend is partly driven by the high costs associated with chargebacks, which can range from $15 to $100 per transaction for the retailer, depending on the industry. With such financial risks at play, it’s understandable why companies might prefer to avoid these transactions altogether.

In addition to the direct financial costs, there is also the potential damage to brand reputation to consider. High levels of fraud can lead to negative perceptions of a company’s security measures, potentially deterring other customers from using their services. For instance, if a large number of fraudulent transactions originating from Indonesia were to go unchecked, it could lead to a loss of consumer confidence not just in Indonesia but in other markets as well. This could have a ripple effect, impacting the overall trust in e-commerce platforms globally.

The broader impact of this trend extends beyond just Indonesia. As more countries in emerging markets experience similar issues, there is a risk that global e-commerce could become increasingly fragmented, with certain regions being excluded from the global market due to security concerns. This fragmentation could stifle the growth of e-commerce in these regions, limiting opportunities for both consumers and businesses. It also underscores the importance of improving global payment security standards to ensure that consumers in all markets can participate in the global economy without facing undue barriers.

There have been some efforts to address these issues, both at the national and international levels. In Indonesia, the government has introduced stricter regulations around online payments and has encouraged the adoption of secure payment technologies such as tokenization and two-factor authentication. These measures have shown some promise, with a slight decrease in fraud cases reported in the first half of 2023. However, more needs to be done to build trust among international retailers. This includes not only strengthening the legal framework but also investing in consumer education campaigns to raise awareness about the importance of secure online practices.

On the global stage, there have been calls for greater cooperation between countries to combat cross-border fraud. Organizations like the Financial Action Task Force (FATF) have been instrumental in setting international standards for combating money laundering and fraud, but enforcement remains inconsistent. Greater collaboration between countries, particularly in the areas of information sharing and joint enforcement actions, could help to reduce the incidence of cross-border fraud and make it easier for consumers in countries like Indonesia to access global markets.

The reluctance of many overseas websites to recognize Indonesian addresses for shipping due to concerns over credit card fraud is a complex issue with far-reaching implications. While these concerns are not unfounded, they do have a significant impact on the global e-commerce market, particularly in terms of limiting the reach of international brands and reducing consumer choice in Indonesia. Addressing these challenges will require a multi-faceted approach, involving stronger regulatory frameworks, improved payment security technologies, and greater international cooperation. By taking these steps, it may be possible to reduce the incidence of fraud and ensure that consumers in all markets can fully participate in the global economy.

Why shipping expense to Indonesia is quite expensive if you do express shipping by the big 4; DHL, FedEx, TNT, and UPS?

Shipping expenses to Indonesia, particularly when using express services provided by the “Big Four” logistics companies—DHL, FedEx, TNT, and UPS—are often prohibitively expensive. This reality has puzzled many consumers and businesses, especially those unfamiliar with the intricate dynamics that influence shipping costs on a global scale. To understand why these costs are so high, one must consider various factors, including the market conditions, the geographic reach of these services, current trends in global shipping, and the broader impact on the world market and consumers.

First and foremost, Indonesia’s geographic location plays a significant role in driving up shipping costs. As an archipelago with over 17,000 islands, Indonesia presents a unique logistical challenge. Unlike countries with contiguous landmasses, shipping goods to Indonesia often involves multiple modes of transportation, such as air, sea, and inland shipping, which naturally increase the complexity and cost of logistics operations. The “Big Four” logistics companies, which pride themselves on their ability to deliver parcels globally within tight timeframes, must navigate these complexities while ensuring reliability and speed. This need for efficiency in a challenging environment inevitably leads to higher costs.

Furthermore, the market size and demand for express shipping to Indonesia influence pricing. Indonesia is the world’s fourth most populous country, with over 270 million people, and its e-commerce market has been booming. Statista reported that Indonesia’s e-commerce market size reached $43 billion in 2023, up from $30 billion in 2022. This growth has driven up demand for fast and reliable shipping, especially for international goods. However, the increasing demand also puts pressure on logistics companies to maintain high standards of service, which often means investing in infrastructure, technology, and human resources to handle the volume and complexity of shipments to and within Indonesia. These investments are passed on to consumers and businesses in the form of higher shipping costs.

The reach of the “Big Four” logistics companies is another critical factor. While DHL, FedEx, TNT, and UPS have established extensive networks globally, reaching every corner of the world, including Indonesia, maintaining these networks is costly. The infrastructure needed to support such wide-reaching operations, including warehouses, distribution centers, and transportation fleets, requires significant financial outlay. For example, DHL has more than 500,000 employees worldwide, and FedEx operates one of the largest air cargo fleets in the world, with over 650 aircraft. These companies must recoup these operational costs, and one way they do so is through premium pricing for their services, particularly in markets like Indonesia, where the logistics challenges are greater.

In terms of trends, the global supply chain has been under immense pressure in recent years, which has also contributed to the high cost of express shipping to Indonesia. The COVID-19 pandemic, which disrupted supply chains worldwide, highlighted the vulnerabilities in global logistics networks. Even as the world recovers, lingering effects such as labor shortages, increased fuel costs, and ongoing disruptions in manufacturing and shipping hubs continue to affect the logistics industry. According to the International Air Transport Association (IATA), air cargo rates increased by 40-50% during the pandemic, and although they have stabilized, they remain elevated compared to pre-pandemic levels. This sustained high cost of air freight directly impacts the pricing of express shipping services, as companies like DHL and FedEx rely heavily on air transportation for their express deliveries.

Moreover, recent geopolitical events, such as the Russia-Ukraine conflict, have further strained global supply chains. The conflict has led to increased fuel prices and has disrupted trade routes, particularly in Europe and Asia. This disruption has a ripple effect on global logistics, increasing the cost of shipping goods internationally, including to Indonesia. The “Big Four” logistics companies must navigate these geopolitical challenges while maintaining their commitment to speedy and reliable service, which again leads to higher costs being passed on to customers.

The impact of these high shipping costs is felt not just in Indonesia but across the global market. For businesses that rely on exporting goods to Indonesia, the high cost of express shipping can eat into profit margins, making it less attractive to enter or expand in the Indonesian market. For instance, small and medium-sized enterprises (SMEs) that operate on thin margins may find it challenging to compete with larger companies that can absorb these higher costs. This dynamic can stifle competition and innovation, particularly in sectors like fashion, electronics, and consumer goods, where Indonesian consumers have shown strong demand for international products.

For consumers, the high cost of express shipping limits access to a wide range of products and services. While the Indonesian e-commerce market is growing rapidly, with companies like Tokopedia, Bukalapak, and Shopee leading the charge, many international brands and products remain out of reach for the average consumer due to prohibitively expensive shipping costs. This situation creates a market where only the wealthiest consumers can afford to import high-demand items, while the broader population must settle for locally available alternatives. This disparity can limit consumer choice and slow the adoption of new technologies and products in the Indonesian market.

On a broader scale, the high cost of shipping to Indonesia reflects the challenges facing the global logistics industry. As the world becomes increasingly interconnected, the demand for fast, reliable, and affordable shipping services continues to grow. However, the logistics infrastructure, particularly in emerging markets like Indonesia, has struggled to keep pace with this demand. The “Big Four” logistics companies are at the forefront of addressing these challenges, but doing so requires significant investment and resources, which inevitably leads to higher costs for consumers and businesses alike.

The high cost of express shipping to Indonesia by the “Big Four” logistics companies can be attributed to a combination of factors, including the country’s challenging geography, the booming e-commerce market, the extensive reach of these companies’ operations, and the ongoing pressures on global supply chains. While these costs may seem prohibitive, they are a reflection of the complex and expensive nature of global logistics, particularly in markets like Indonesia. As the logistics industry continues to evolve, finding ways to reduce these costs while maintaining service quality will be crucial for businesses and consumers alike. In the meantime, the high cost of express shipping to Indonesia serves as a reminder of the challenges and opportunities that come with operating in a globalized world.

Why shipping to Indonesia is difficult and many problem when clearing the customs clearance in Indonesia with a lot of bureaucracy needed?

Shipping to Indonesia, despite its allure as a growing market with immense potential, presents significant challenges that can often frustrate businesses and consumers alike. The country’s complex customs procedures, extensive bureaucracy, and frequently changing regulations make the process of getting goods into the country both time-consuming and costly. To fully understand why shipping to Indonesia is fraught with difficulty, it’s essential to explore the market dynamics, the logistical and bureaucratic hurdles involved, and the broader impact these issues have on the global market.

Indonesia, with a population exceeding 275 million, is the largest economy in Southeast Asia and the fourth most populous country in the world. Its consumer market is expanding rapidly, with an increasingly affluent middle class that has driven significant growth in e-commerce. According to Statista, Indonesia’s e-commerce market was valued at approximately $53 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 16.2% from 2023 to 2028. This burgeoning market offers a lucrative opportunity for international businesses looking to tap into a vibrant consumer base. However, the complexities associated with shipping goods to Indonesia can be a significant deterrent.

One of the primary challenges is the country’s intricate customs clearance process. The Indonesian customs system is notorious for its opacity and the high level of bureaucracy involved. Importing goods into Indonesia requires navigating a maze of paperwork, regulations, and approvals, which can vary depending on the type of goods being shipped. The process often involves multiple government agencies, each with its own set of requirements and procedures. This complexity not only increases the time it takes for goods to clear customs but also raises the cost of importing products.

For instance, the World Bank’s Ease of Doing Business Index, which ranks countries based on the ease of doing business, placed Indonesia 73rd out of 190 countries in 2020. While Indonesia has made some strides in improving its business environment, the country still lags behind many of its regional peers when it comes to trade logistics. The World Bank’s Logistics Performance Index (LPI) also reflects this, ranking Indonesia 46th out of 160 countries in 2018. One of the key components of the LPI, customs efficiency, is a particular area where Indonesia performs poorly, highlighting the challenges faced by businesses trying to import goods into the country.

The complexity of the customs process in Indonesia is further compounded by the frequent changes in regulations. The Indonesian government regularly updates its import regulations, often with little notice. These changes can include new tariffs, restrictions on certain products, and additional documentation requirements. For businesses, especially those not based in Indonesia, keeping up with these regulatory changes can be a daunting task. Failure to comply with the latest regulations can result in delays, fines, or even the seizure of goods.

Another significant challenge is the pervasive corruption within the Indonesian customs system. Despite efforts by the government to curb corruption, it remains a widespread issue. Businesses often report having to pay unofficial fees or bribes to expedite the customs clearance process. This adds another layer of complexity and cost to importing goods into Indonesia. According to Transparency International’s Corruption Perceptions Index, Indonesia ranked 102nd out of 180 countries in 2022, indicating that corruption remains a significant concern for businesses operating in the country.

The logistical challenges of shipping to Indonesia are not limited to customs clearance. Indonesia is an archipelago consisting of over 17,000 islands, which presents unique challenges in terms of transportation and distribution. While major cities like Jakarta, Surabaya, and Medan are well-connected, reaching customers in more remote areas can be difficult and expensive. This is particularly problematic for e-commerce businesses, which rely on efficient and cost-effective logistics to deliver products to customers. The lack of infrastructure in many parts of the country exacerbates these challenges, leading to longer delivery times and higher shipping costs.

The impact of these logistical and bureaucratic challenges is significant, not just for businesses looking to enter the Indonesian market, but for the global market as a whole. The high cost and complexity of shipping to Indonesia can discourage international businesses from entering the market, limiting the range of products available to Indonesian consumers. This, in turn, stifles competition and innovation in the market, leading to higher prices and fewer choices for consumers.

Moreover, the difficulties associated with shipping to Indonesia can have a ripple effect on global supply chains. Indonesia is a major producer of a wide range of products, including palm oil, rubber, and textiles, which are critical inputs for many industries around the world. Delays or disruptions in shipping these products can have a significant impact on global supply chains, leading to shortages and price increases in other parts of the world.

The challenges of shipping to Indonesia also have broader implications for the global e-commerce market. As cross-border e-commerce continues to grow, the ability to efficiently and cost-effectively ship products to customers around the world is becoming increasingly important. However, the difficulties associated with shipping to Indonesia highlight the limitations of the current global trade infrastructure. If the challenges of shipping to Indonesia are not addressed, it could limit the growth of cross-border e-commerce, particularly in emerging markets.

Despite these challenges, there are opportunities for improvement. The Indonesian government has recognized the need to streamline its customs procedures and improve its logistics infrastructure. In recent years, the government has introduced several initiatives aimed at reducing the complexity of the customs clearance process and improving the efficiency of the logistics sector. For example, the Indonesia National Single Window (INSW) was introduced to provide a single platform for businesses to submit and process customs documentation. While these initiatives are a step in the right direction, much more needs to be done to address the underlying issues that make shipping to Indonesia so challenging.

Shipping to Indonesia is fraught with challenges, from the complexity of the customs clearance process to the logistical difficulties of reaching customers in a vast archipelago. These challenges not only increase the cost and time it takes to import goods into Indonesia but also limit the range of products available to Indonesian consumers and impact global supply chains. While the Indonesian government has taken steps to address some of these issues, significant challenges remain. For international businesses looking to tap into the growing Indonesian market, navigating these challenges will require careful planning, local expertise, and a willingness to adapt to a complex and rapidly changing regulatory environment. As the global e-commerce market continues to evolve, addressing the challenges of shipping to Indonesia will be critical to unlocking the full potential of this dynamic and rapidly growing market.

Why shipping to Indonesia is difficult with perception on high taxes as more than 1 tax you need to pay when you import the goods to Indonesia?

Shipping to Indonesia, a sprawling archipelago nation with more than 17,000 islands, presents unique challenges that can be daunting for international businesses. Indonesia, with its population exceeding 275 million, is a promising market with vast potential. However, the complex import regulations, perceived high taxes, and logistical hurdles can make entering this market a formidable task. The perception of high taxes, in particular, is a significant deterrent, as businesses often face more than one tax when importing goods into Indonesia. This issue, coupled with the country’s vast geography and infrastructure challenges, can complicate shipping operations, leading to increased costs and delayed entry into the market.

Indonesia’s market is tantalizing for global companies, with a burgeoning middle class, a youthful population, and a growing appetite for consumer goods. The country’s GDP was approximately $1.19 trillion in 2023, with a steady annual growth rate of 5% over the past decade. Despite these promising indicators, the complexities of navigating Indonesia’s import system cannot be understated. The perception of high taxes is rooted in the reality of the country’s multifaceted tax structure. When importing goods, companies typically encounter several layers of taxes, including import duty, value-added tax (VAT), and sometimes luxury tax, depending on the product category. For instance, the import duty on electronics can range from 0% to 10%, while VAT stands at 11%. Additionally, luxury goods might be subject to an additional tax ranging from 10% to 75%. These cumulative taxes can significantly inflate the cost of goods, making them less competitive in the local market.

This intricate tax system is not just a barrier for large corporations but also for small and medium enterprises (SMEs) looking to tap into the Indonesian market. SMEs often lack the resources to navigate the complex regulatory environment, leading to increased reliance on third-party logistics providers, which further escalates costs. For example, a recent survey indicated that 60% of SMEs cited high import taxes and complex customs procedures as significant barriers to entering the Indonesian market. This has a direct impact on the prices of goods in Indonesia, making imported products more expensive than locally produced alternatives, which can hinder the competitiveness of foreign brands.

The logistical challenges of shipping to Indonesia cannot be overlooked. The country’s geography, with its vast distances between islands and varying levels of infrastructure development, adds another layer of complexity to shipping operations. While the main islands of Java, Sumatra, and Bali are relatively well-connected, the more remote islands face significant logistical challenges. Shipping goods to these areas can be time-consuming and costly, with limited options for reliable transportation. For instance, a shipment from Jakarta to a remote island in eastern Indonesia can take weeks, and the costs can be prohibitive, particularly for perishable goods. This not only affects the availability of products in these regions but also discourages companies from expanding their reach beyond the main population centers.

Despite these challenges, Indonesia remains an attractive market for many global companies, particularly in the technology, automotive, and consumer goods sectors. Brands like Apple, Samsung, and Toyota have established a strong presence in the country, leveraging Indonesia’s large and growing consumer base. However, these companies often have to navigate the complexities of the local market, including the high tax burden and logistical challenges. For example, Apple’s products are subject to high import duties and luxury taxes, making them significantly more expensive in Indonesia compared to other markets. Despite this, Apple has maintained its position as a leading brand in the country, thanks to its strong brand loyalty and the growing demand for premium products among Indonesia’s middle class.

The impact of Indonesia’s import taxes and logistical challenges extends beyond the country’s borders. For the global market, Indonesia’s barriers to entry mean that companies must carefully consider their pricing strategies and supply chain management when entering the market. The high taxes and additional costs associated with shipping to Indonesia can erode profit margins, leading companies to either absorb the costs or pass them on to consumers. This can make products less competitive in the global market, particularly when compared to countries with more straightforward import procedures and lower tax burdens. For instance, a study found that the cost of importing goods to Indonesia was 25% higher than to neighboring Malaysia, primarily due to the additional taxes and logistical challenges.

Moreover, the perception of high taxes and complicated import procedures can deter foreign investment, particularly in industries that rely heavily on imports, such as manufacturing and technology. Companies may opt to invest in other Southeast Asian countries with more favorable tax regimes and better logistics infrastructure. This can have a ripple effect on Indonesia’s economy, as it limits the country’s ability to attract foreign direct investment (FDI) and hampers the development of key industries. In 2023, Indonesia’s FDI inflows were $28 billion, a respectable figure but lower than neighboring countries like Vietnam, which attracted $38 billion. The difference can be attributed, in part, to the perception of Indonesia’s challenging business environment, including its tax and import regulations.

Recent trends, however, indicate that Indonesia is taking steps to address some of these challenges. The government has introduced several initiatives aimed at simplifying the import process and reducing the tax burden on certain goods. For example, in 2022, the Indonesian government launched the National Logistic Ecosystem (NLE) to streamline logistics and reduce costs. The NLE aims to integrate various logistics services, from transportation to warehousing, into a single platform, thereby improving efficiency and reducing the time and cost of shipping goods across the country. Additionally, the government has introduced tax incentives for certain industries, such as technology and renewable energy, to attract foreign investment and encourage the growth of these sectors.

However, these initiatives are still in the early stages, and their impact on the market remains to be seen. For companies looking to enter the Indonesian market, it is crucial to stay informed about these developments and to work closely with local partners who understand the intricacies of the market. Despite the challenges, the rewards of entering the Indonesian market can be substantial, particularly for companies that can successfully navigate the complexities of the tax system and logistics.

While shipping to Indonesia is fraught with challenges, particularly the perception of high taxes and the reality of multiple taxes on imports, the market’s potential is undeniable. With a large and growing consumer base, Indonesia offers significant opportunities for companies willing to invest the time and resources needed to overcome these barriers. The key to success lies in understanding the local market, navigating the complex regulatory environment, and leveraging local partnerships to streamline logistics and reduce costs. As Indonesia continues to develop its infrastructure and simplify its import processes, the country is likely to become an even more attractive destination for global companies looking to expand their presence in Southeast Asia.

Why shipping to Indonesia is difficult with perception on clogged system of importation system compared to the neighboring countries?

Shipping to Indonesia presents a myriad of challenges that distinguish it from neighboring countries in Southeast Asia, often being perceived as having a clogged importation system. This perception is not unfounded and is backed by a combination of logistical hurdles, regulatory complexities, and infrastructural limitations that collectively complicate the flow of goods into the country. The Indonesian market is undeniably large, with a population of over 270 million, making it the fourth most populous country in the world. However, the very scale that makes Indonesia an attractive market also contributes to its logistical difficulties. The archipelagic nature of the country, comprising more than 17,000 islands, significantly complicates the transportation and distribution of goods, a challenge that is less pronounced in more geographically consolidated neighboring countries like Thailand, Malaysia, and Singapore.

The Indonesian market, while large, is geographically fragmented. This fragmentation not only affects domestic logistics but also poses challenges for international shipping. Unlike Singapore, a city-state with a highly centralized and efficient port system, or Malaysia, with its well-connected road and rail networks, Indonesia’s vast archipelago requires a more complex and costly distribution strategy. The primary ports, such as Tanjung Priok in Jakarta, are often overwhelmed with traffic, leading to delays and increased costs for importers. These delays are exacerbated by the underdeveloped infrastructure in many parts of the country, where roads, bridges, and local ports may not be adequately equipped to handle large volumes of goods. As a result, shipping companies must navigate not only the physical distance but also the inefficiencies of the transportation network, which can lead to significant delays and additional costs.

The regulatory environment in Indonesia further complicates the importation process. The country’s customs procedures are notoriously slow and cumbersome, often requiring extensive documentation and numerous approvals. This bureaucratic complexity is partly due to the government’s efforts to protect domestic industries by imposing stringent import controls, which include high tariffs and various non-tariff barriers such as import licensing and quota restrictions. For example, the importation of certain products like electronics, textiles, and automobiles is subject to rigorous scrutiny, with importers required to obtain special permits and comply with specific labeling and packaging regulations. These requirements not only add to the cost and time of shipping but also create uncertainty for businesses, as the regulatory landscape can change with little notice, further deterring companies from entering the market.

In contrast, neighboring countries have made significant strides in streamlining their importation processes. Singapore, for instance, is renowned for its efficiency, ranking as one of the top logistics hubs globally. The city-state has implemented advanced customs procedures that allow for the swift clearance of goods, often within a matter of hours. Malaysia, too, has simplified its importation system, reducing the time and cost associated with bringing goods into the country. These improvements have made neighboring markets more attractive to international businesses, who may prefer to ship to these countries rather than deal with the complexities of the Indonesian system.

Recent trends highlight the impact of these logistical and regulatory challenges on Indonesia’s position in the global market. For instance, during the COVID-19 pandemic, the demand for e-commerce surged globally, leading to an increased volume of goods being shipped internationally. However, Indonesia struggled to keep up with this demand due to its clogged importation system. E-commerce giants like Amazon and Alibaba faced significant delays in delivering products to Indonesian consumers, with some shipments taking weeks or even months to arrive. This contrasts sharply with the experience in other Southeast Asian markets, where goods could be delivered within days. The slow delivery times not only frustrated customers but also led to a loss of trust in online shopping, thereby dampening the growth of the e-commerce sector in Indonesia.

The clogged importation system also has broader implications for the global market. Indonesia is a significant importer of raw materials and intermediate goods, which are used in the production of various products worldwide. Delays in importing these goods can disrupt global supply chains, leading to shortages and increased prices in other parts of the world. For example, Indonesia is a major importer of crude palm oil, which is used in the production of a wide range of consumer goods, from food products to cosmetics. Delays in the importation of palm oil can have ripple effects across the global market, leading to supply shortages and price increases in countries that rely on this commodity.

The perception of Indonesia as a difficult market to ship to also affects its attractiveness to foreign investors. Companies looking to establish a presence in Southeast Asia may opt to set up operations in neighboring countries with more efficient importation systems. This not only deprives Indonesia of potential investment but also limits the country’s ability to integrate into global supply chains. For instance, many multinational corporations have chosen to base their regional headquarters in Singapore or Malaysia rather than Indonesia, despite the latter’s larger domestic market. This decision is often driven by the ease of doing business in these countries, where goods can be imported and exported with minimal hassle.

One of the most telling comparisons is with Vietnam, a country that has emerged as a manufacturing powerhouse in recent years. Vietnam has invested heavily in its infrastructure and has implemented reforms to simplify its customs procedures, making it an attractive destination for companies looking to relocate their supply chains. As a result, Vietnam has seen a surge in foreign direct investment, particularly in the electronics and textile industries. In contrast, Indonesia’s complex importation system has deterred some companies from setting up manufacturing operations in the country, limiting its ability to compete with Vietnam in these sectors.

Shipping to Indonesia is fraught with difficulties due to a combination of logistical, regulatory, and infrastructural challenges. These issues have created a perception of a clogged importation system, which stands in stark contrast to the more efficient systems in neighboring countries. The impact of these challenges is far-reaching, affecting not only the Indonesian market but also the global supply chain and the broader world market. As global trade continues to evolve, Indonesia will need to address these challenges if it is to remain competitive and attract foreign investment. Failure to do so could see the country fall further behind its neighbors, limiting its potential as a key player in the global economy.

How the knowledge of express shipping industry able to help you?

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).

Why should you ship with SindoShipping and how is our company able to help you and your business to ship your goods and products to Indonesia?

Our company vision is to help companies around the world to be able to export their products to Indonesia with ease and expand their market worldwide especially in South East Asia as Indonesia is the leading internet market and largest economy around the region and to help ease the process of importation to the country and we want to help millions of Indonesian to access products worldwide with effective shipping system.

With the proper documentation and brokerage, we are able to help our customers ship a few categories of goods which have limited restrictions to Indonesia without any hassle to the customers address directly as we understand the process and the regulation of the imports including the taxation process of imports.

SindoShipping specialized in electronics, high tech products, cosmetics, luxury branded, toys, supplement and vitamins, fashion, bags and shoes, and traditional medicine shipping to Indonesia since 2014 with the top accuracy of shipment service and the live tracking available during the cross border shipment so the customer can feel safe and secure about their shipping. Contact us now for further details at 6282144690546 and visit out site sindoshipping.com