The exporting sector of Indonesia is an integral part of the country’s economy and is a major contributor to its Gross Domestic Product (GDP). Exports from Indonesia have been on the rise over the past few years, with the country’s total exports reaching US$200 billion in 2018. This is a significant increase from the US$175 billion recorded in 2017.
The exporting sector of Indonesia is a major driver of economic growth and development. It has been instrumental in providing employment opportunities for millions of Indonesians and has helped to boost the country’s foreign exchange reserves. The sector has also been a major contributor to the country’s balance of payments, as it has helped to reduce the trade deficit.
The state has proposed a few laws and regulations governing export from the nation to successfully control this industry. If one wants to start an export business in their country, one must abide by these regulations and follow the procedures. You may learn everything you need to know about exporting from Indonesia from this page.
Exporting goods from Indonesia
Generally, the processes below must be followed to export products from Indonesia:
- Signing contracts
To begin with, the exporter contact with foreign importers to make offers and bargain for the products he wants to sell. The type of goods, quality, cost, specifications, and other information must be included in the proposal to the importer. The importer and exporter sign and execute a deal if the importer accepts the exporter’s offer. The terms of the parties’ agreement are spelled forth in the sales agreement.
- Letter of Credit issuing
The buyer receives the letter of credit via a financial institution in his nation after finalizing the accord. To notify the exporter that the credit letter has been obtained, they then send it to the authorized Foreign Exchange Bank.
- Getting export products ready
The exporter gets the goods ready for the importer to order after they receive the letter of credit. The prepared items must be in a condition that complies with the terms of the business agreement and the letter of credit. After preparing the goods, the shipper must register with PEB.
- Reservation of ship space
The exporter orders ship berths from Ocean Freight Forwarders or aircraft. Shippers should also take into account which transport firm has the cheapest freight delivery costs and provides the best assurance of on-time delivery.
- The order’s handling
Don’t forget to ask your supplier about a delivery schedule after getting a shipment order. A delivery contract is a paper outlining the ordered products that the buyer and the supplier have agreed upon. This letter is intended for the company’s warehouse division.
- Customs examination
Customs will eventually examine the export documentation. The items will also be checked by customs if required. Customs will stamp the loading permission on the PEB once they have verified that the goods and related paperwork are in order.
Documents required for Exportation
To export goods from Indonesia, you often require much documentation, including:
NPWP (Nomor Pokok Wajib Pajak)
You must first and foremost have NPWP. The term refers to the taxpayer id number. This number is specifically given to a taxpayer as a way of administering taxes so that the taxpayer may identify himself when exercising his entitlements and duties.
Business permit
This is an operating permit for a business or individual engaged in the trade of purchasing and selling products and services.
Custom registration number
Customs Registration Numbers are identification numbers given to people and businesses by the Director General of Customs (DJBC). This serves as authorization to access anything relating to customs, as well.
Invoice
This includes details about the shipped goods. This will be made for the consignee by the consignor or exporter.
Document of Lading
A bill of lading serves as a mediator between the exporter and the receiver and serves as a receipt for the transshipment. Also, it serves as proof of the delivery agreement. This document also acts as a contract for the arrival of the product to the carrier and their transit, as well as a guarantee of the items while they are being shipped.
