Exhibition time: September 25-27, 2024
Exhibition venue: Jakarta International Expo Center.
Exhibition time: September 25-27, 2024
Exhibition venue: Jakarta International Expo Center.
Knowledge points that must be seen when sailing to Indonesia
CICC foreign exchange research, Focus on Business, Zhe Yi Finance
April 21, 2024
Now, China's enterprises export to Indonesia has a lot of market space and advantages. Many domestic products are very suitable for Indonesia's market demand, foreign trade export enterprises can focus on the development of the country. Of course, know yourself and know the enemy can be a hundred battles. Want to do business with Indonesian customers, then we have to fully understand the local customs, customer characteristics and national foreign exchange policy and so on.
 
Indonesian customer characteristics:
 
1, Indonesian businessmen are slow to make decisions, and business negotiations are usually very long, but creditworthiness is OK. When dealing with them, be prepared for a long-lasting war and be patient.
 
2、Indonesians attach great importance to friendship and talk a lot about old friendship. Therefore, if you want to do business with them, you must pay attention to the cultivation of relationship. To focus on the future, fully demonstrate your sincerity in order to gain their trust.
 
3、Don't talk about local politics, socialism and foreign aid when you talk to Indonesians.
 
4、Most of the Indonesian buyers are modest and polite, like to laugh, laugh is their other language, so and they face to face communication, must not be sad face.
 
5、Indonesia's customs clearance is relatively difficult, to confirm with the customer whether he can handle himself; if not, you can contact a company specializing in this.
 
6、Most Indonesians believe in Islam, so you can not use your left hand to take things to them. Avoid eating pork food, avoid drinking strong alcohol, do not love to eat sea cucumbers, and do not eat dishes with bones and juice and fish maw.
 
7、Indonesians attach great importance to the transmission of business cards, and when they meet, must take the initiative to offer your business card.
 
8、The best time to go to Indonesia to discuss business is from September to June every year, because most Indonesian businessmen go out for summer vacation in July and August.
 
9、the characteristics of Indonesian businessmen is that they like to have someone to visit them at home, and home visit is an effective means to talk business with Indonesian businessmen can be carried out smoothly.
 
10、Indonesians like to bargain. In order to avoid unnecessary losses, when you make a bid to leave a special margin!
 
Indonesian Consumer :
 
1、Due to Indonesia's large population, which contains hundreds of different races and cultures, Indonesian consumers also prefer to shop on familiar language websites;
 
2、Most Indonesian consumers get information about promotions from social media and TV ads;
 
3、YouTube, with a penetration rate of approximately 94%, is the most used social platform in Indonesia;
 
Indonesia Payment Environment:
 
Credit card market has only 2% penetration in Indonesia, bank transfer, e-wallet, internet banking, and cash payment are the most popular local payment methods in Indonesia. Among them, OVO, DANA, DOKU, LinkAja, and Shopeepay are the top five popular e-wallet payments in Indonesia.
 
In addition to the top five popular e-wallet payments, 94% of Indonesians are also using bank transfers as the main payment method for online shopping, followed by convenience store cash payments and carrier payments.
 
Foreign exchange policy:
 
1、Indonesian rupee IDR, foreign exchange without control, but need to be filed with the central bank
 
2、Imports pay foreign exchange free settlement, the export part of the license required, minerals and other energy must be settled with a letter of credit
 
3、Service trade and other income, no restrictions
 
4、Foreign investors can not invest in ports and other infrastructure, agriculture, communications, finance and other industries have shareholding restrictions, non-residents are not allowed to buy or sell real estate
 
5、Entry and exit with more than the equivalent of 100 million rupees (about 50,000 yuan) in cash must be declared and approved.
 
Tariff System:
 
The average import tariff level in Indonesia is low, and tariffs on imported goods are levied in the following four categories:
 
Category A goods: imported goods that are necessary for domestic purposes' including rice, flour, certain iron and steel products, certain chemical fiber products, cotton, medicinal herbs, agricultural machinery and equipment. Import tariff rates for most of these commodities range from 5% to 10%.
 
Category B commodities: for some industrial products necessary parts and materials 'import tariff rate of about 10%.
 
Category C commodities: commodities that are not in great demand in the domestic market or for which the domestic enterprises concerned need import protection.
 
Category D commodities: for luxury goods, certain consumer goods, and goods that can be produced domestically but should be imported for protection.
 
Customs clearance requirements:
 
1、The basic principle of Indonesia's import customs clearance is that shipments with a value of less than 100 U.S. dollars are duty-free.
 
2、 Shipments with a customs value higher than US$100 and lower than or equal to US$1500 can be eligible for any of the following customs clearance processes: customs clearance using consignment receipts (single tariff of 7.5%) or customs clearance through the filing of a PIBK/PIB import declaration.
 
3、In Indonesia, customs are categorized into red light customs and green light customs. Generally speaking, from December to March every year is the red light period for import clearance in Indonesia. Indonesian Customs will combine with other law enforcement agencies to carry out strict checks on import clearance, and the clearance procedure requires more procedures and longer time than before.
 
Suggestion:
 
1、Strictly in accordance with the requirements of Indonesia Customs, fill in the certificate of origin columns. As detailed as possible, in the invoice amount and other columns can not blindly follow the customer requirements, especially involving third-country intermediaries easy to fill in the truth.
 
2、Choose strong and reputable Indonesian customers, strengthen the communication with customers, and obtain the relevant policy requirements of Indonesian Customs.
 
3、export products to Indonesia as far as possible with the FOB price of the contract, in order to avoid the risk of Indonesia Customs clearance.
 
4、In accordance with the requirements of the establishment of the certificate of origin related documents file, and save 3 years, so as not to encounter the query can not provide the evidence required by the Indonesian Customs.
 
With the implementation of the RCEP agreement and the Belt and Road Initiative, there will be more foreign trade opportunities in the Indonesian market, so let's work together.