Why shipping branded luxury goods to Indonesia difficult and expensive?

Shipping branded luxury goods to Indonesia presents a series of challenges that make the process both difficult and expensive. Understanding the dynamics at play requires a look into various aspects such as the market landscape, logistical reach, prevailing trends, and the broader impact on the world market and general customer base. By examining these elements, we can gain a comprehensive view of the complexities involved in this niche yet significant sector.

Indonesia, an archipelago of more than 17,000 islands, poses a unique logistical challenge for shipping any goods, let alone high-value luxury items. The country’s vast geography and varied infrastructure quality mean that transportation routes can be convoluted and unreliable. For luxury goods, which often require stringent handling and security measures, this can significantly drive up costs. According to a report by Bain & Company, the luxury market in Indonesia is growing at a compounded annual growth rate (CAGR) of 6-8%, indicating a robust demand. However, meeting this demand is fraught with logistical hurdles.

One major factor contributing to the high cost of shipping luxury goods to Indonesia is the country’s import regulations. Indonesia imposes high import duties on luxury items, which can reach up to 40%. This is coupled with value-added tax (VAT) and luxury goods sales tax, adding further financial burdens on importers. These taxes are designed to protect local industries and control the influx of high-end products, but they inevitably make imported luxury goods significantly more expensive for consumers. For example, a branded handbag that retails for $1,000 in Europe could end up costing nearly $1,500 in Indonesia after taxes and shipping costs.

The reach of luxury brands in Indonesia is also limited by the country’s uneven retail infrastructure. While Jakarta and Bali boast high-end shopping malls and boutiques, many other parts of the country lack such facilities. This means that luxury brands often need to invest in establishing a presence in these regions, which involves significant capital expenditure on retail spaces, marketing, and staffing. Additionally, e-commerce is not a fully viable alternative due to concerns over counterfeit products and a lack of trust in online transactions among Indonesian consumers. This makes physical stores an essential, yet costly, component of market penetration.

Trend-wise, Indonesian consumers are becoming increasingly brand-conscious and aspirational. There is a growing middle class with disposable income who are keen to invest in luxury goods as a status symbol. According to McKinsey, Indonesia’s consuming class is expected to double by 2030, reaching 141 million people. This demographic shift is fueling demand for luxury items, but the high costs and logistical challenges mentioned earlier can act as significant barriers to market entry and expansion for luxury brands.

The impact of these challenges on the world market is multifaceted. For one, the high costs and difficulties associated with shipping to Indonesia can dissuade global luxury brands from entering the market or expanding their operations. This limits the choices available to Indonesian consumers and can drive them to seek alternatives, including counterfeit goods, which undermine brand value and revenue. Moreover, the difficulties in penetrating the Indonesian market can lead to missed opportunities for luxury brands to capitalize on a rapidly growing economy. The Indonesian economy is projected to be the fourth largest in the world by 2050, and failing to establish a foothold now could mean losing out on a significant market in the future.

For the general world customer market, the challenges faced in Indonesia highlight broader issues related to global trade and logistics. High import duties and complex regulations are not unique to Indonesia; many emerging markets impose similar barriers. This can result in higher prices for luxury goods globally, as brands might increase their prices to offset the costs incurred in these markets. Additionally, the emphasis on stringent regulations and taxes in countries like Indonesia can prompt discussions on trade policies and the need for more streamlined processes to facilitate easier market access.

Recent events and trends in the luxury market further underscore these points. For instance, the COVID-19 pandemic disrupted global supply chains and highlighted the vulnerabilities in international shipping. Luxury brands that relied heavily on global logistics found themselves grappling with delays and increased costs. In Indonesia, the pandemic exacerbated existing logistical challenges, making it even more difficult and expensive to ship goods. Brands like Louis Vuitton and Gucci, which are highly sought after in Indonesia, had to navigate these complexities while trying to maintain their market presence and meet consumer demand.

Additionally, the rise of e-commerce giants such as Alibaba and Amazon has changed consumer expectations regarding shipping times and costs. However, the luxury segment often cannot meet these expectations due to the need for specialized handling and security, which are not easily provided by standard e-commerce logistics. This further complicates the process and adds to the cost.

Shipping branded luxury goods to Indonesia is a complex and costly endeavor influenced by a combination of logistical challenges, high import duties, limited retail infrastructure, and evolving consumer trends. The impact of these difficulties extends beyond Indonesia, affecting global market dynamics and consumer prices. As the Indonesian market continues to grow, luxury brands must navigate these obstacles to capitalize on the significant opportunities presented by an increasingly affluent and brand-conscious population. The future of luxury goods in Indonesia will likely depend on innovations in logistics, favorable trade policies, and the ability of brands to adapt to local market conditions while maintaining their global standards.

Why high import tax always become a problem to ship branded goods to Indonesia?

High import taxes in Indonesia have long been a significant barrier to shipping branded goods into the country, presenting numerous challenges for both consumers and businesses. These taxes, designed to protect local industries and generate revenue for the government, inadvertently create hurdles that affect market dynamics, product reach, consumer trends, and broader global market impacts. Understanding why high import taxes are such a persistent problem requires an in-depth examination of these various facets.

The Indonesian market, with its vast population of over 270 million people, presents immense potential for branded goods. There is a growing middle class with increasing disposable income, eager to spend on premium and branded products. However, the high import taxes, which can range from 10% to 40% depending on the product category, significantly inflate the prices of these goods. For example, a designer handbag that retails for $1,000 in Europe can cost upwards of $1,500 in Indonesia after accounting for import duties, VAT, and luxury goods taxes. This substantial price hike can deter consumers from purchasing these items, limiting the market reach of many international brands.

The high import taxes also complicate the logistics and distribution channels for branded goods. Companies need to navigate a complex regulatory environment that includes various permits, customs procedures, and compliance with local standards. These processes not only add to the cost but also delay the time it takes for products to reach the market. According to a study by the World Bank, the average time to import goods into Indonesia is significantly longer compared to other Southeast Asian countries, primarily due to the intricate customs procedures. This delay can be particularly detrimental for fashion and technology brands, where timely market entry is crucial to capitalizing on trends and consumer demand.

Trends in consumer behavior further highlight the problems posed by high import taxes. Indonesian consumers are increasingly brand-conscious and aspirational, seeking to purchase luxury and branded goods as a status symbol. A report by McKinsey indicates that the country’s consuming class is expected to double by 2030, reaching around 141 million people. This demographic shift is driving demand for branded goods, but the high costs resulting from import taxes can push consumers towards alternatives such as counterfeit products. The counterfeit market in Indonesia is thriving, with many consumers opting for fake versions of branded goods due to the lower prices. This not only harms the revenue of legitimate brands but also tarnishes their image and reduces the perceived value of their products.

The impact of Indonesia’s high import taxes extends beyond the local market, affecting global market dynamics and consumer behavior. For one, the inflated prices in Indonesia can set a precedent for other markets with similar tax structures, potentially leading to higher global prices for branded goods. This can affect the affordability and accessibility of these products for consumers worldwide. Moreover, the reluctance of brands to fully enter the Indonesian market due to high import taxes can lead to missed opportunities for growth in one of the world’s most populous countries. As a result, global brands might prioritize markets with lower entry barriers, thus impacting their overall market strategies and growth trajectories.

For the general world customer market, the high import taxes in Indonesia serve as a reminder of the broader challenges in global trade. Many emerging markets impose high import duties to protect local industries and generate revenue, but these measures can backfire by stifling competition, limiting consumer choice, and fostering a market for counterfeit goods. The global luxury market, valued at over $300 billion, relies heavily on emerging markets for growth, and restrictive import policies can hinder this potential. As brands navigate these challenges, they must adapt their strategies to balance regulatory compliance with market penetration and consumer engagement.

Recent events and trends in the global economy further underscore the problems posed by high import taxes. The COVID-19 pandemic disrupted global supply chains and highlighted the vulnerabilities in international trade. For brands relying on global logistics, these disruptions meant increased costs and delays, exacerbating the challenges posed by high import taxes. In Indonesia, the pandemic intensified the scrutiny on imported goods, leading to stricter customs procedures and longer processing times. Brands like Apple, which saw significant demand for their products in Indonesia, had to navigate these additional hurdles while maintaining their market presence and meeting consumer expectations.

Furthermore, the rise of e-commerce has transformed consumer expectations regarding shipping times and costs. However, high import taxes and the associated logistical challenges mean that many e-commerce platforms struggle to provide the same level of service for branded goods in Indonesia as they do in other markets. This disparity can frustrate consumers and deter them from making online purchases, further limiting the market reach of international brands.

High import taxes in Indonesia present a persistent problem for shipping branded goods into the country. These taxes inflate prices, complicate logistics, and push consumers towards counterfeit products, limiting the market reach and potential for growth of international brands. The impact of these challenges extends beyond Indonesia, affecting global market dynamics and consumer behavior. As the Indonesian market continues to grow, it is crucial for policymakers to strike a balance between protecting local industries and fostering an open and competitive market environment. For global brands, navigating these challenges requires a nuanced understanding of local market conditions and a strategic approach to market entry and expansion.

Why in Indonesia, de minimis of import is USD 3 for goods or products that shipped via parcel service?

In Indonesia, the de minimis value for imports via parcel service is set at a remarkably low threshold of USD 3. This regulation, which subjects parcels above this value to import duties and taxes, has significant implications for the market, the reach of international goods, consumer trends, and the broader global market. Understanding the rationale behind this low de minimis value and its impact requires an examination of several key factors.

The Indonesian market is characterized by a burgeoning middle class and a young, tech-savvy population that is increasingly engaging in online shopping. E-commerce in Indonesia has seen exponential growth, with sales projected to exceed USD 50 billion by 2025, according to a report by Google, Temasek, and Bain & Company. Despite this growth, the low de minimis value of USD 3 poses a significant barrier for both consumers and international sellers. For context, many other countries have much higher de minimis thresholds—Australia’s is AUD 1,000, while the United States has a de minimis value of USD 800. The stark contrast highlights the restrictive nature of Indonesia’s import policies.

The rationale behind setting such a low de minimis value is multifaceted. Primarily, it serves to protect local industries from being overshadowed by a flood of cheap imported goods. By imposing taxes and duties on parcels valued over USD 3, the government aims to encourage consumers to buy domestically produced products, thereby supporting local businesses and manufacturers. This protectionist measure is intended to foster the growth of the Indonesian economy, which is heavily reliant on small and medium-sized enterprises (SMEs). SMEs contribute approximately 60% to Indonesia’s GDP and employ around 97% of the workforce, making their protection a critical economic strategy.

However, the low de minimis value also significantly impacts the reach of international goods in Indonesia. For international brands and small businesses looking to tap into the Indonesian market, this regulation poses a substantial obstacle. Products that would otherwise be affordable become prohibitively expensive once import duties and taxes are applied. For example, a small electronic gadget priced at USD 10 could end up costing the consumer significantly more after import duties, VAT, and handling fees are added. This not only discourages consumers from purchasing international goods but also limits the competitive landscape, as international sellers might find it unfeasible to cater to the Indonesian market.

Consumer trends in Indonesia are notably influenced by the low de minimis threshold. The country’s young population is highly connected and keen on global brands and products, yet the additional costs imposed by import duties can deter online shopping from international platforms. This has led to a rise in the popularity of local e-commerce sites that focus on domestic products. While this shift benefits local sellers, it restricts consumer choice and access to a wider range of products available in the global market. According to a survey by JakPat, a local market research firm, around 75% of Indonesian online shoppers have expressed frustration with the high costs associated with importing goods, highlighting the consumer dissatisfaction stemming from these regulations.

The impact of Indonesia’s low de minimis value extends to the global market as well. For international sellers, the additional costs and bureaucratic hurdles can make Indonesia a less attractive market to enter. This can result in missed opportunities for growth in one of the world’s most populous countries, which is projected to become the fourth-largest economy by 2050. Brands like H&M, Zara, and Uniqlo, which have a significant following in Indonesia, often have to adjust their pricing strategies to account for the high import duties, which can reduce their competitiveness against local brands. Moreover, the complex import procedures and additional costs can lead to delays and reduced profit margins for international businesses.

For the general world customer market, Indonesia’s stringent import policies serve as a cautionary tale about the balance between protectionism and open market access. While protecting local industries is essential, excessively low de minimis values can stifle competition, limit consumer choice, and hinder economic growth. The global trend towards lowering trade barriers and simplifying import procedures stands in contrast to Indonesia’s approach, which could isolate it from broader economic integration and the benefits that come with it.

Recent events and evolving market dynamics further underscore the challenges posed by the low de minimis value in Indonesia. The COVID-19 pandemic accelerated the shift towards e-commerce, with consumers increasingly relying on online shopping for their needs. In this context, the additional costs imposed by Indonesia’s import regulations became even more pronounced. Consumers, already facing economic uncertainties, found it more challenging to justify the extra expenses for imported goods. This situation was exacerbated by global supply chain disruptions, which further increased the cost and time required to ship goods internationally.

Additionally, the rise of digital marketplaces such as Amazon and Alibaba has heightened consumer expectations regarding the accessibility and affordability of international products. However, Indonesia’s import policies make it difficult for these platforms to offer the same level of service and pricing in the Indonesian market as they do elsewhere. This disparity can lead to consumer frustration and a preference for local alternatives, which may not always meet the same quality and variety standards as international products.

Indonesia’s de minimis value of USD 3 for goods shipped via parcel service is a complex issue with far-reaching implications. While it aims to protect local industries and generate government revenue, it also restricts the reach of international goods, influences consumer trends, and impacts the broader global market. The low threshold increases costs for consumers, complicates logistics for international sellers, and limits competition, which can ultimately hinder economic growth and consumer satisfaction. As Indonesia continues to grow as a significant player in the global economy, finding a balance between protectionism and open market access will be crucial for fostering a more competitive and consumer-friendly environment.

Why Indonesia are restricting import regulations of importing consumer goods from China in recent time and the effect for other imported product such as luxury branded goods?

Indonesia’s recent move to restrict the import of consumer goods from China reflects a complex interplay of economic, political, and social factors. This policy shift aims to protect local industries, manage trade imbalances, and address national security concerns, among other reasons. Understanding the motivations and impacts of these restrictions requires a comprehensive look at the market dynamics, consumer trends, and the broader implications for both the Indonesian and global economies.

Indonesia, with its population of over 270 million people, represents a significant market for consumer goods. The country has experienced rapid economic growth, with its GDP expanding by an average of 5% annually over the past decade. This growth has been accompanied by rising consumer demand, particularly for affordable goods, much of which has been met by imports from China. Chinese products, known for their competitive pricing, have flooded the Indonesian market, ranging from electronics to apparel and household items. According to data from Indonesia’s Central Statistics Agency, imports from China accounted for approximately 28% of the country’s total imports in 2021, highlighting the strong trade ties between the two nations.

However, this influx of Chinese goods has posed significant challenges for local manufacturers. Many Indonesian businesses, particularly small and medium-sized enterprises (SMEs), have struggled to compete with the low prices of Chinese imports. This competition has led to a decline in market share for local producers, threatening their viability and the jobs they provide. In response, the Indonesian government has implemented measures to restrict imports, including increased tariffs, stricter quality controls, and import quotas. These measures aim to level the playing field for domestic industries and promote local production.

The reach of these import restrictions extends beyond economic protectionism. There is also a political dimension to Indonesia’s trade policies. The government has emphasized the importance of self-sufficiency and reducing dependency on foreign goods, particularly in strategic sectors. By restricting imports from China, Indonesia aims to bolster its own manufacturing capabilities and reduce its reliance on a single trading partner. This strategy aligns with President Joko Widodo’s broader economic agenda, which includes infrastructure development and industrial diversification to support sustainable economic growth.

Consumer trends in Indonesia have also played a role in shaping import regulations. The Indonesian middle class is expanding, with increasing disposable income and a growing appetite for quality products. However, there is a strong sentiment among consumers to support local businesses, driven by national pride and concerns over the quality and safety of imported goods. Reports of substandard and counterfeit products from China have fueled these concerns, prompting the government to tighten import regulations to protect consumers. By enforcing stricter quality controls and certification requirements, Indonesia aims to ensure that imported goods meet national standards and do not undermine consumer trust.

The impact of Indonesia’s import restrictions on the global market is significant. China, as the world’s largest exporter, relies heavily on markets like Indonesia to sustain its economic growth. The restrictions could lead to a decline in Chinese exports to Indonesia, affecting industries and supply chains dependent on this trade. For instance, Chinese electronics and textile manufacturers, which have a substantial market share in Indonesia, may face reduced demand, potentially leading to production cutbacks and job losses in China. This could also have a ripple effect on global supply chains, as companies may need to adjust their sourcing and production strategies in response to changing trade dynamics.

For the general world customer market, Indonesia’s import restrictions highlight broader trends in global trade. Protectionist policies are becoming more prevalent as countries seek to safeguard their industries and reduce trade imbalances. These measures can lead to shifts in trade patterns, affecting the availability and prices of goods in different markets. Consumers worldwide may experience changes in product offerings and costs as businesses adapt to new regulatory environments. Additionally, the emphasis on local production and self-sufficiency could inspire similar policies in other countries, potentially leading to a more fragmented and less integrated global market.

Recent events and geopolitical developments have further influenced Indonesia’s import regulations. The COVID-19 pandemic exposed vulnerabilities in global supply chains, prompting countries to reassess their dependency on foreign goods. In Indonesia, disruptions in the supply of essential items during the pandemic underscored the need for greater self-reliance. This experience has strengthened the government’s resolve to promote domestic production and reduce import dependency. Additionally, rising geopolitical tensions, particularly between the United States and China, have added a layer of complexity to Indonesia’s trade policies. Aligning too closely with one major power could have strategic implications, prompting Indonesia to diversify its trade relationships and reduce over-reliance on any single partner.

The restrictions on imports from China also reflect broader concerns about economic sovereignty and national security. There is growing awareness of the strategic risks associated with heavy reliance on foreign suppliers, particularly in critical sectors such as technology and infrastructure. By limiting imports and encouraging local production, Indonesia aims to mitigate these risks and enhance its economic resilience. This approach aligns with global trends towards reshoring and nearshoring of supply chains, as countries seek to reduce their exposure to geopolitical risks and ensure the stability of their economies.

Indonesia’s decision to restrict the import of consumer goods from China is driven by a combination of economic, political, and social factors. The policy aims to protect local industries, manage trade imbalances, and address national security concerns, while also responding to consumer preferences and global trends. The impact of these restrictions extends beyond Indonesia, affecting global trade patterns, supply chains, and consumer markets. As Indonesia continues to navigate its economic and geopolitical landscape, the balance between protectionism and open trade will remain a critical issue. The country’s approach to import regulations will likely evolve in response to changing circumstances, with implications for both domestic and international stakeholders.

Why there are a high import tax on certain products compared to other in Indonesia especially luxury branded goods?

Indonesia imposes high import taxes on certain products, particularly luxury branded goods, as part of its economic strategy to protect local industries, generate revenue, and manage consumer behavior. Understanding why these taxes are higher compared to others requires examining various aspects such as the market, reach, trends, and the broader impact on both the Indonesian and global economies.

The Indonesian market, with its expanding middle class and growing appetite for luxury goods, presents a significant opportunity for high-end brands. According to Bain & Company, the luxury market in Indonesia has been growing at an annual rate of 6-8%, driven by rising disposable incomes and increasing consumer sophistication. However, to capitalize on this market, foreign brands must navigate the high import taxes that the Indonesian government imposes on luxury goods. These taxes, which can exceed 40%, significantly inflate the cost of imported luxury items, making them more expensive for consumers.

One primary reason for the high import taxes on luxury goods is to protect local industries. By imposing steep tariffs on imported luxury items, the Indonesian government aims to encourage consumers to purchase domestically produced goods instead. This strategy supports local manufacturers and artisans, who might otherwise be unable to compete with the allure of international luxury brands. The protectionist policy is crucial for the growth of Indonesia’s local fashion and accessory industry, which has the potential to create jobs and stimulate economic activity. For example, local brands like Biyan and Peggy Hartanto have gained recognition for their quality and design, partly due to the competitive advantage provided by high import taxes on foreign luxury goods.

The high import taxes also serve as a significant revenue stream for the government. In a country with a vast population and numerous developmental needs, import duties on luxury goods contribute substantially to the national budget. According to the Indonesian Ministry of Finance, import duties and taxes constitute a significant portion of the government’s revenue. By targeting luxury goods, which are non-essential and typically purchased by wealthier individuals, the government ensures that those with higher spending power contribute more to the state coffers. This revenue can then be redistributed to fund public services and infrastructure projects, benefiting the broader population.

Another critical aspect of the high import taxes is their role in managing consumer behavior and addressing socio-economic disparities. Luxury goods are often seen as symbols of wealth and status, and their conspicuous consumption can exacerbate social inequality. By making luxury items more expensive through high import taxes, the government aims to reduce the gap between the affluent and the less affluent. This approach also aligns with the cultural and social norms in Indonesia, where there is a strong emphasis on modesty and community well-being.

The impact of these high import taxes extends beyond Indonesia, affecting the global luxury market and consumer behavior worldwide. For luxury brands, Indonesia’s high import taxes represent a significant barrier to market entry and expansion. Brands like Louis Vuitton, Gucci, and Rolex, which are highly sought after in Indonesia, must adjust their pricing strategies to account for the additional costs. This often means higher retail prices, which can limit their customer base and overall sales in the country. Consequently, luxury brands may be more cautious about investing in the Indonesian market, potentially leading to missed opportunities for growth.

For the general world customer market, Indonesia’s high import taxes on luxury goods highlight broader issues related to international trade and market accessibility. Many countries impose higher tariffs on luxury items to protect local industries and manage economic inequality, creating a complex landscape for global trade. This can lead to price disparities across different markets, affecting consumer choices and purchasing power. For instance, a luxury handbag that costs $2,000 in Europe might be priced at $3,000 or more in Indonesia, due to the added import taxes. Such price differences can influence global shopping patterns, with affluent consumers in high-tax countries opting to purchase luxury goods abroad to avoid the additional costs.

Trends in consumer behavior also reflect the impact of high import taxes on luxury goods. In Indonesia, there is a growing preference for local and regional luxury brands that offer quality and craftsmanship comparable to international names but without the hefty price tags. This shift is driven by both the financial burden of high import taxes and a burgeoning sense of national pride and identity. Consumers are increasingly valuing products that reflect their cultural heritage and support local economies. This trend is not unique to Indonesia but is observed in other emerging markets with similar import tax structures.

Recent events and global economic trends further underscore the implications of high import taxes on luxury goods. The COVID-19 pandemic, for example, disrupted global supply chains and highlighted the vulnerabilities of relying on international imports. In Indonesia, this led to increased scrutiny of import policies and reinforced the government’s focus on promoting local industries. As the global economy gradually recovers, the emphasis on self-sufficiency and local production is likely to persist, potentially leading to more stringent import regulations and higher taxes on luxury goods.

Additionally, geopolitical tensions and trade wars can influence import tax policies. As countries navigate complex international relationships, trade policies become tools for economic leverage and negotiation. Indonesia’s import taxes on luxury goods can be seen within this broader context, where trade policies are used to protect national interests and manage international dependencies.

The high import taxes on certain products, especially luxury branded goods, in Indonesia are driven by a combination of economic protectionism, revenue generation, and social equity considerations. These taxes aim to support local industries, contribute to the national budget, and manage consumer behavior. While they present challenges for international luxury brands and influence global trade dynamics, they also reflect broader trends in economic policy and consumer preferences. As Indonesia continues to grow and evolve, its import tax policies will play a crucial role in shaping the market landscape and economic opportunities for both local and international stakeholders.

Is that really troublesome to ship the luxury goods to Indonesia? and what might be the tax need to pay?

Shipping goods from abroad to Indonesia is not a difficult thing but also some things to note, especially the issue of incoming taxes or terms that are often heard is customs. The latest regulation from the Government through Customs has established the latest import provisions related to consigned goods stipulated in the Regulation of the Minister of Finance number PMK 199/PMK.10/2019 and will come into force on January 30, 2020. In this rule Customs adjusts the value of exemption of customs duties on consigned goods from the previous USD 75 to USD 3 per shipment. While the tax levy in the framework of imports (PDRI) is imposed normally. However, the government also rationalized the tariff from the beginning ranging from ± 27.5% – 37.5% (import duty 7.5%, VAT 11%, PPh 10% with NPWP, and PPh 20% without NPWP) to ± 18.5% (import duty 7.5%, VAT 11%, PPh 0%).

“Director of International and Interagency Customs, Syarif Hidayat revealed that although import duties on consigned goods are subject to a single tariff, the government pays special attention to the inputs submitted by craftsmen and producers of much-loved goods and floods from abroad.” This resulted in bags, shoes, and garment products in the country not selling. As some craftsmen know bags and shoes are many who roll out and only sell Chinese products,” he said.

Considering the impact caused by the proliferation of these products, the government has set normal import duty rates for bags, shoes, and garment commodities of 15%-20% for bags, 25%-30% for shoes, and 15%-25% for textile products with VAT of 11%, and PPh of 7.5% to 10%. “The determination of this normal tariff in order to create fair treatment in taxation or level playing field between domestic products that are mostly from IKM and taxed with imported products through freight and distributor imports through general cargo,” said Syarif.”

The desire to buy branded bags is getting higher whether for business or social life makes the delivery of branded goods increased. Then how do I send it? Is it subject to high customs clearance if buying branded bags from abroad? And for the delivery of branded goods why through Sindoshipping?

One-by-one we will discuss in detail and the reasons for using SindoShipping services

1. Because Sindo shipping overseas delivery services to Indonesia through transit Singapore via air freight and all our shipments are all in including customs. So shipping will be safer and easier without the need for goods to be held back because of taxes.

2. Apart from Singapore we can send from outside Singapore such as Malaysia, America, etc. For the cost we provide the best for you, such as, branded category goods such as shoes and clothes shipping costs Rp 250.000/kg with term &condition.

If sending branded goods with high value how?

If branded goods are categorized as bags worth less than 40,000,000 will be charged 300,000/pcs and more than 40,000,000 will be charged 1,000,000/pcs. Outside shipping costs according to the intended place.

Then if you send goods from outside Singapore will be taxed?

Yes, because every item that enters Singapore if the value is more than 400SGD will be charged 8% GST. But we provide a solution if the value of goods more than 3500SGD we will charge handling fee 250SGD where the delivery through the tax-free line.

That way your delivery remains smooth and safe for tax entry into Indonesia. For those of you who want to buy or send various kinds of branded bag imported from abroad and need a reliable shipping service, Sindo shipping is a trusted solution. Don’t forget to send your goods using Sindo Shipping, which is ready to deliver your order safely. Come on guys!! What are you waiting for? Immediately use the delivery service to buy at Sindo Shipping right now! And don’t forget if you want to send the item from or abroad, you can use Sindo Shipping services to save on shipping costs. Get a variety of other useful information about shipping goods, and you can apply it in your daily life, via our website or our Instagram or you can contact whatsapp at number 081296055142 . Don’t forget we have a special discount 20% available for our new users!

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 personal shipping and e-commerce shipping of 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

Stay connected with us for the latest information, find out more details you can checking another article informations:

• Price list information: PRICE LIST OF SHIPPING TO INDONESIA 
• Shipping Procedure: HOW TO START SHIPPING TO INDONESIA WITH SINDOSHIPPING
• SOP: SIMAK STANDARD OPERATING PROCEDURE (SOP) MENGENAI KETENTUAN PENGIRIMAN BARANG DAN ASURANSI DI SINDO SHIPPING
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(Writer by: Lidya Team Sales Sindo shipping)