Indonesia is home to more than 270 million people, making it the most populous country in Southeast Asia. But spread over 17,000 islands, it’s also one of the hardest to navigate in terms of logistics and communication. If you don’t understand the local customs rules and import duties, you could make some costly mistakes. Here is everything you need to know before you start shipping parcels to Indonesia, from finding the best international shipping rates, to offering fast shipping, to ensuring your packaging meets requirements.
Snapshot of Indonesia’s eCommerce market
Growing 12 times in the past four years, Indonesia’s eCommerce market is the biggest in Southeast Asia. Gross merchandise volume was around 32 billion USD last year and is projected to reach 83 billion USD by 2025, representing a CAGR of 37.4%. The main driver of this growth is the increase in eCommerce users: 221 million people are expected to be shopping online in Indonesia by 2025.
Fashion is the biggest product category, representing 30% of all eCommerce revenue in Indonesia. This is followed by electronics and media with 24%, food and personal care with 16%, toys, hobby and DIY with 15% and furniture and appliances with the remaining 14%.
The most popular online shopping sites are Lazada, Tokopedia, Bukalapak, Blibli, Shoppee, and JD.com, which offer a wide range of products as well as multiple payment and delivery options. The average revenue per eCommerce user in Indonesia is 219.50 USD.
Things to consider before shipping from Singapore to Indonesia
Before you start shipping internationally to Jakarta and other parts of Indonesia, there are a few things you should be aware of.
Cash on delivery is still the preferred payment method for 70% of people in Indonesia, although digital and mobile payments are becoming more common, accounting for 30% of eCommerce payments last year.
Saturday and Sunday are considered non-working days, so if your shipments are scheduled on these days, you could experience delays. The same goes for public holidays, such as Pancasila Day on June 1 and Independence Day on August 1.
Make sure you’re aware of local behaviour and events to avoid disappointing customers.
What you need to know about shipping internationally from Singapore to Indonesia
Customs rules
To clear customs in Indonesia, international shipments should include the following information:
- Full address and other identifying details of the recipient
- Receipt of payment of import duty and import-related taxes
- Other relevant permits, licenses, and certificates for the contents
Depending on the recipient, you should provide the following identifying details in the field labeled Consignee Tax ID/VAT/EIN on the airway bill:
If you are sending to a business:
- Receiver’s tax ID number
If you are sending to an individual:
- National ID
- or family card number
- or passport number (for foreigners)
In addition, your parcel should be properly packed and sealed. Check out Shippit’s packing tips here before sending any post to Indonesia.
Import duties and taxes
Shipments with a declared value of 3 USD or more are subject to Indonesian import duties and taxes. Import duties range from 0-450% depending on the HS code of the items being sent.
On top of this, there is a value-added tax (VAT) of 10%. Luxury goods are also subject to a luxury tax. This is between 5-20% for alcoholic beverages, 40% for branded shoes, and even higher for luxury cars.
Restricted and prohibited items
In addition to import duties and taxes, some shipments require additional permits, licences, or certificates, depending on the contents. Fresh food, for instance, must be halal certified. The list of restricted items changes frequently, but may include: clothing, electronics, folk handicrafts, fresh food, and hazardous materials.
Some items can’t be shipped to Indonesia at all. The list of prohibited items includes: drugs, explosives, firearms, objectionable publications, and politically sensitive materials.
How to access discounted international shipping with Shippit
If you’re looking for cheap international shipping from Singapore to Indonesia, then Shippit has got you covered. We ship internationally via Aramex Janio and DHL with rates starting at just 5.84 SGD for parcel delivery to Jakarta and the rest of the country in 4-7 days.
Instead of trying to negotiate the lowest DHL shipping rates, Aramex shipping rates, or Janio shipping rates on your own, you can save time with Shippit. As a multi-carrier platform, we negotiate the cheapest shipping to Indonesia on your behalf, so you can focus on what you do best – looking for new opportunities to grow your business.