Distributing a product

Evolution of the sector

Consumer goods were originally sold on traditional markets which could be categorized in different sectors like wholesalers and retailers. With modern markets, most manufacturing companies do not distribute their products themselves as this is too expensive; they call on companies specialized in distribution, which, in turn, use traditional channels.

Doing business in Indonesia means going through a wide spectrum of agents, distributors or economic intermediaries. It may be difficult to find a distributor for storage, as expenses linked to warehousing are rather crippling.

Market shares

Although traditional markets are still dominant in Indonesia, modern retail shops, such as hypermarkets, are rapidly becoming more popular, especially in urban areas. Hypermarkets enjoyed the fastest growth rate in 2005: their number rose by 55% and their area by 51%. In spite of the rapid growth of modern retail shops, the "other" retailers of grocery products (small traditional stalls, itinerant merchants and other small retailers) represent 95% of all retailers and almost 56% of sales.

Organizations in the retail sector

Indonesian shopkeeper's association on Multiply (APIM)

We can identify professional tradeshows on your sector.

Market access procedures

International Conventions

Member of World Trade Organisation
Party to the Kyoto protocol
Party to the Washington convention on International trade in endangered species of wild fauna and flora
Party to the Basel convention on the Control of Transboundary Movements of Hazardous Wastes and their disposal
Party to the Montreal protocol on Substances that deplete the Ozone Layer
Party of the International coffee agreement 2001

International economic cooperation

The country is a member of the APEC, ASEAN, AFTA and the ASEAN - China Free Trade Area.
The country have signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).

Non tariff barriers

It is strictly prohibited to import certain products: books, magazines, brochures and newspapers written in Chinese, in Indonesian or in a local language (except for scientific reasons) as well as cassettes, video cassettes and films for personal use.
Import licenses are required for medicines, psychotropic substances, explosives, arms, fireworks, films and videos, telecommunications equipment, color photocopiers, unregistered foods and drinks, some pesticides (DDT, EDB, Pentachlorophenols). These licenses are issued after consultation with the competent Ministry (Agriculture, Health, Commerce and Industry).

Customs duties and taxes on imports

 9.5% (2006)

Customs classification

To classify imports and exports, Indonesia uses the Harmonized System of nomenclature and codification of goods. To honor its commitments to the WTO and respond to the imperatives of domestic politics, the government has implemented two types of policy over the last few years which have had a considerable effect on the level and the structure of duties. These policies are linked to a program of duty reduction between 1996 and 2003, and to a program of tariff harmonization between 2004 and 2010.

Import procedures

Documents required for import are: a waybill which must show the transport costs; a commercial invoice containing information, amongst others, about the buyer and the seller, the date of dispatch, the nature and the price of the goods, their origin, transport and insurance costs; an insurance certificate, which must usually be produced when the goods are insured outside Indonesia or if they must be put in a bonded warehouse; and a certificate of origin, in the case of drugs or medicines.

Importing samples

Commercial samples must be sent directly to the importer.

For further information

General Customs Office
Ministry of Commerce
Indonesian Chamber of Commerce and Industry

We can indicate you which are the customs duties applied to your product.

Find out the local taxes that apply to your product.

Organizing goods transport

Main useful means of transport

Concerning goods transport, the sea route is used most. 69% of imports pass through the two main ports which are Tanjung Priok (Jakarta) and Tanjung Perak (Surabaya)

Ports

Guide of Indonesian ports
Tanjung Priok
Tanjung Perak
Pontianak
Banjarmasin
Palembang
Jayapura

Airports

Jakarta International Airport, Soekarno-Hatta (CGK) 
Denpasar-Bali Ngurah Rai (DPS) 
Medan Airport (MES)
Juanda Airport (SUB)
Hasanuddin Airport (UPG)
Adisucipto Airport (JOG)

Sea transport organizations

Ministry of Communications, Department of maritime communication

Air transport organizations

Ministry of Communications, Department of air communication

Road transport organizations

Ministry of Communications, Department of land communication

Rail transport organizations

Ministry of Communications, Department of railway communication

Get a ballpark figure for transportation costs for your product in this country through a shipping estimate.

Identifying a supplier

Type of production

The mining industry, energy production (oil, gas and electricity), the textile industry, automobile industry, forestry (plywood, rubber, palm oil).

Business directories

Yellow pages
Kompass
Indonesia business directory
Trade with Indonesia

Manufacturers associations of the main industries

National association of Indonesian construction companies (GAPEKSINDO)
Association of Indonesian IT companies (APKOMINDO)
Indonesian mining association
Union of steel manufacturers (GAPBESI)
Association of rubber producers (GAPKINDO)
Association of pharmaceutical companies

Trade Agencies and their representations abroad

Indonesian Chamber of Commerce and Industry

Enterprises federation

A list of Indonesian associations is available on the website of the Bureau for coordination of investments (BKPM).

Standards

National standards organizations

National Standardization Agency (BSN)
National Accreditation Committee (KAN)

Integration in the international standards network

At the international level:

- International Electrotechnical Commission (IEC)
- International Organisation for Standardization (ISO)
- Codex Alimentarius Commission (CAC)
- International Laboratory Accreditation Cooperation (ILAC).

At the regional level:

- ASEAN Consultative Commitee for Standards and Quality (ACCSQ),
- APEC Standards and Conformance Sub Committee,
- Pacific Area Standard Congress (PASC)
- Asia Paciific Metrology Programme (APMP)
- Asia Pacific Laboratory Accreditation Cooperation (APLAC)
- Pacific Accreditation Cooperation (PAC)

Classification of standards

"SNI" is the national certification mark.

Online consultation of standards

The list of Indonesian standards is available on the BSN website.

 

Certification organizations

National Standardization Body (BSN)

Find out the standards and labelling requirements that apply to your products.

Intellectual Property

National organizations

The organization responsible for the protection of trademarks and patents in Indonesia is the Indonesian Patent Office (IPTEC).

Directorate General of Intellectual Property Rights, Ministry of Law and Human Rights

Regional organizations

There are harmonization procedures within ASEAN and APEC.

International membership

Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention for the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)