INDONESIA

Logistic and forwarding services in Indonesia

Indonesia

Capital City
Jakarta

Population
244 Mio.

National languages
Indonesian (Bahasa Indonesia)

Currency
Indonesian Rupee (IDR)

Gross national product (GNP)
USD 868 Mrd.

GNP per person
USD 3’468

Financial exports to Switzerland
CHF 619 Mio.

Financial imports from Switzerland
CHF 318 Mio.

Bilateral relations Switzerland–Indonesia

From 1952, when a Swiss opened its first official representation in Jakarta, until 1997 Switzerland carried out a wide range of development cooperation activities in Indonesia. Today Indonesia is the fourth most important destination for direct Swiss investments in Asia after Japan, Singapore and China.

Economic cooperation

As part of Switzerland’s economic policy strategy for Indonesia, a joint economic and trade commission was established in late November 2009. Since 2008 Indonesia has been one of the seven priority countries for economic development cooperation carried out under the lead management of the State Secretariat for Economic Affairs (SECO).  With its economic development programme for 2013–2016, SECO is supporting Indonesia’s efforts to undertake public sector, economic and environmental reforms.
About 150 Swiss companies are currently investing in Indonesia. According to the Swiss National Bank (SNB), at the end of 2012 Swiss direct investments amounted to CHF 6.941 billion, leading to the creation of over 53,000 jobs. Indonesia is the fourth most important destination for direct Swiss investments in Asia after Japan, Singapore and China.
According to Indonesian statistics, Swiss companies invested USD 255 million in 37 projects in 2012. Switzerland was thus the 12th biggest foreign investor in Indonesia.
Negotiations on an EFTA-Indonesia free-trade agreement are under way

 

Business language

English, Bahasa Indonesia.

Dimensions and weights

Metric system.

Currency

National currency Rupiah (Rp.) = 100 Sen (S).
ISO code: IDR

Customs tariff

Harmonised system. Customs clearance based on the transaction value.

Import control

Importers must be registered with the Ministry of Commerce and hold a commercial licence. In addition to this, registration with the customs administration (DGCE) is also required. The Ministry of Commerce differentiates between two types of licence (APIU = import for goods to be sold on the Indonesian market and APIP = import for production purposes).
There are authorisation obligations for certain goods (including pesticides, pharmaceutical raw materials, hazardous chemicals) which are the responsibility of various different authorities. Other goods (foods, cosmetics, medications) are subject to registration obligations with the Ministry of Health.
There are bans on the import of goods such as certain crude oil products, pesticides, used tyres, vending machines with heating and cooling devices). Pre-shipment inspections are required for various groups of goods. In addition to this, there are norms and standard provisions (labelling obligations) which are checked during the pre-shipment inspection.
Standard VAT rate: 10%.

Pre-shipment inspection

Certain goods (including ceramics, food and drinks, shoes, multifunctional copying devices, iron and steel products and high quality beef (prime cuts) – please discuss this with the inspection company – are subject to a pre-shipment inspection (goods and document inspection). These goods are also only able to be imported via certain Indonesian customs ports and airports. The Indonesian imports must apply for an “Inspection Order” (I. O.) which will subsequently be conveyed to the relevant inspection company in the country of export. The certificate is generally issued in Indonesia and is used for customs clearance.
Free Sales Certificates may be requested.

Terms of payment and tenders

Irrevocable letters of credit to your own bank on confirmation of the order recommended. The letter of credit number must be indicated on the shipping papers. Payments based on collection are only to be made when the Indonesian foreign trade bank has the documents about the shipping of the goods (see shipping and accompanying papers). Tenders in English CIF Jakarta or other authorised sea ports. Pro forma invoices are recommended.

Designations of origin

Designation of origin on commercial invoices. In the case of a misleading impression in terms of the origin of the goods the labelling “ Made in …” is advisable.

Marking/labelling

Usual markings. Sign boxes with the country of origin of the goods, number of the letter of credit application or import indication no. (PI) must be indicated. Exporters should ask the importers about the marking they require before shipping the goods. Seaworthy packaging. Various goods such as ready-to-eat foods, drinks, ceramics and porcelain, glass goods, household goods, textiles and soap may only be imported in the original packaging of the manufacturer. The type of goods, quantity, weight and trademark type must be precisely indicated on the packaging.
Different product types, goods classes and trademarks must be packaged separately. There is a ban on misleading information about the origin.

Packaging

Agree packaging and markings with the importer. Robust, weatherproof packaging. Use of the IPPC standard ISPM no. 15.

Product samples

Samples with no retail value can be imported free of charge, as can exhibition and trade fair goods, provided a customs security totalling the import duties is left during temporary import. This amount will be paid back on re-export.

Shipping and accompanying documents

Standard and for

a) Number of commercial invoices varies (depending on the importer), precise, standard information + signature. The invoice must show the number of the letter of credit application when importing via export bonus with no coverage, along with the name of the bank engaged (where this is permitted and the import evidence number (P.J.). If this information is missing from the accompanying documents, the import cannot be processed as an export bonus import. It is then treated as “shipped goods” and the importer will have to pay using expensive free foreign currencies.

b) Certificates of origin – no general rules; the authorities reserve the right to request a Chamber of Commerce certificate of origin in individual cases; if required use the following as the origin for Swiss goods: “Swiss”.

c) Uncertified bills of lading, commercial invoices, order bills of lading permitted. The following are to be indicated for deliveries for Indonesian government projects financed using “foreign currency credits” number of L/C application, number of the letter of credit and name of the bank.

d) 20 kg: 1 international dispatch note, 2 customs declarations in English/French/Indonesian, 2 commercial invoices, 1 of which should be placed in the package.

 

 

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