Indonesia - Selling and buying
Reaching the consumers
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 access procedures
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).
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).
Permits are required for animals and animal products. These documents are issued by the Directorate General of Livestock and Animal Health Services. At present, the importation of all chicken products is banned. There is a specific quota system for spirits and wines.
Foreign companies are allowed to import or to manufacture products but not both.
The most favoured countries have a tariff of 7.6%, in average. Recently Indonesia has started to ask a zero tariff for some pharmaceutical raw materials and some equipment for the print industry.
In average the bound tariff is 37% but most tariffs are bound at 40%. Some products such as automobiles, steel, some agricultural products and some chemical products pay more than 40%. Spirits have a tariff of 150%.
In addition to import documentation, some certificates are required. This is the case for food, seeds, pharmaceutical and chemical products. A notification to the Customs Office and electronic document submission must be done prior to the arrival of merchandise.