Have you considered shipping to Indonesia? As Southeast Asia’s largest e-commerce market, it could be a lucrative opportunity for your business.
With the right local insights, customs knowledge, and – of course – an international shipping partner, your business can cash in. Read on for an in-depth guide to help your business export to Indonesia.
ONLINE SHOPPING IN INDONESIA: MARKET OVERVIEW
Southeast Asia’s e-commerce leader
In 2023, Indonesia’s e-commerce market was valued at 62 billion dollars – far ahead of other countries in the region(1). This figure is expected to rise to 160 billion dollars by 2030.
Huge internet adoption
Thanks to the country’s improved digital infrastructure, it’s forecast to have a whopping 274.2 million internet users in 2024(2).
A mobile-first nation
Indonesia’s mobile commerce market is booming – it now takes a 64% share of the country’s total e-commerce transactions(3).
Where does Indonesia import from the most?
Top import countries4
(By share of total Indonesia imports, 2022)
Where do consumers in Indonesia shop online?
Most visited marketplace websites in Indonesia, 20245
- Shopee
- Tokopedia
- Lazada
To sell on one of these marketplaces, foreign SMEs will need to register as an “official store.” This is an exclusive service provided by marketplaces to show that the seller is the rightful owner of the brand and has the legal rights to sell products.
What are they buying?
Most popular Indonesia online shopping categories6
(By estimated value, in billion US dollars, 2022)
How do Indonesian consumers like to pay for their online purchases?
After all, e-commerce shoppers are more likely to abandon their carts if they cannot pay using their preferred payment method.
Distribution of e-commerce payment methods in Indonesia7
(By share of total e-commerce transactions, 2022)
GoPay, OVO and DANA are popular digital wallets in Indonesia. Offering these trusted services at your checkout will reassure local buyers to shop with your business.
Online shopping in Indonesia: what do consumers care about?
These insights will help you position your business to appeal to local buyers.
Mobile commerce is big business
Ensure you optimize your e-commerce website for the small screen to give customers a user-friendly experience. Offer ‘Guest Checkout’, an address autocomplete feature, and payment via digital wallet so customers don’t have to fill in lots of details.
Social commerce is booming
Indonesians spend an average of three hours and 14 minutes a day on social media(8). Livestreaming on TikTok Shop is gaining momentum there. It’s a great way to showcase your products in more detail – just make sure your stream is fun and creative if you want to keep viewers’ attention!
Fast shipping is the biggest incentive
“Delayed/slow delivery” was cited by Indonesian consumers as the number one deterrent to shopping online(9). With DHL Express, you can guarantee your customers fast and reliable shipping – wherever in the world they may be!
Online shopping in Indonesia: leading events
Be sure to add these dates to your marketing and sales calendar so your business can prepare and cash in!
Double digit sales days, throughout the year
1.1 (1st Jan), 2.2 (2nd Feb), 3.3 (3rd March) … each month, many Indonesian retailers use the “double digit” day to lay on deals and discounts. Ensure you schedule your sales promotions for these dates if you want to cash in!
Idulfitri (Eid al-Fitr), March/April
As a Muslim country, Indonesia celebrates Idulfitri, which marks the end of the fasting of Ramadan. The national holiday is only two days long, but during the two weeks beforehand, people are busy shopping for food and new clothes for the event.
Black Friday/Cyber Monday weekend, November
Like many other countries, Indonesia participates in this sales bonanza. Competition is fierce, so be ready to offer significant deals to attract bargain hunters.
Christmas Day/New Year, December/January
Indonesians who shop with cross-border brands are well versed with seeking out Christmas and end-of-year sales, giving businesses like yours the opportunity to make some extra sales.
SHIPPING TO INDONESIA: CUSTOMS INSIGHTS
Required documentation
One of the essential licences needed to import into Indonesia is the Indonesian Tax ID Number (NPWP - Nomor Pokok Wajib Pajak) and the Single Business Number (NIB).
It’s important to be aware that new customs regulations were introduced by the Indonesian government in 2021. Cross-border businesses shipping to Indonesia will now need to contact the consignee to obtain their national Tax ID Number. This must be shared with the shipment carrier service and included on the shipment’s Air Waybill and Commercial Invoice.
In the absence of a Tax ID Number, private individuals (i.e. the consignee) can instead provide:
- Indonesian ID Number (NIK - Nomor Induk Kependudukan; for Indonesian nationals)
- Indonesian driver’s licence (for Indonesian nationals or foreigners)
- Passport number (only for foreigners)
To facilitate the customs clearance and declaration process in Indonesia, shippers must provide several documents, including:
- Commercial Invoice
- Air Waybill
- Bill of Lading
- Purchase order
- Packing list
- Certificate of Origin
- Receipt of payment of import duty and import-related taxes
- Other relevant permits that may be needed depending on the respective Harmonised System (HS) Codes. For example, for HS Code 9503.00.10 (tricycles, scooters, pedal cars and similar wheeled toys; dolls’ carriages), a survey report and SNI (Indonesian National Standard) certificate is required from the Ministry of Trade.
There’s a lot to remember, but DHL’s MyGTS (My Global Trade Services) can help. This free, user-friendly platform will guide you through all aspects of international shipping, including obtaining the necessary customs and trade documents.
