Shipping to Indonesia offers up a world of opportunity for growth-minded eCommerce merchants. The country boasts a robust economy and Internet-savvy population, making it a great place to expand your business too.
Here’s a closer look at some market insights, popular online shopping marketplaces, couriers to use, tax and duty information and much more!
Internet Usage Growing Rapidly in Indonesia
Indonesia offers a strong economy and solid Internet usage, making it a prime opportunity for online merchants seeking cross-border opportunities. eCommerce accounts for eight percent of total retail sales in 2019 in Indonesia, a figure projected to rise to 18 percent by 2023, indicating robust growth in the years ahead.
Indonesia has a population of 271 million of 2019 with a GDP of $932 billion USD. While eCommerce revenue for the year 2019 stands at $18 million USD, it’s also estimated to increase sharply to $47 million USD by the year 2023.
Currently, Internet user penetration stands at 62 percent in Indonesia, though this is estimated to increase to 75 percent by 2023.
Social media usage is also among the highest in the world in Indonesia. Currently, the number of Internet users is approximately 147 million in the country, a number expected to increase rapidly and reach more than 241 million by the year 2023. Both desktop computer and mobile device usage in the country are growing at a steady clip too.
Indonesians Shop on Local, Global Online Marketplaces
Amazon is one of the most most popular international online stores for Indonesians to shop from, making Amazon international shipping to Indonesia a solid option for merchants. There are certain items that can’t be shipped to Indonesia on the eCommerce platform, but most items can be sold and shipped easily. As of now, Amazon Prime isn’t available for Indonesia.
eBay and AliExpress are also very popular in Indonesia. eBay has partnered with a local company and launched a website for Indonesia in 2013 called Blanja. Similarly, AliExpress partnered with Doku, a payment gateway in Indonesia, allowing online shoppers to have payments displayed in Indonesian Rupiah and sites translated into Indonesian.
Top Local Online Marketplaces in Indonesia:
In addition to major global players like Amazon and eBay, local online marketplaces in Indonesia also include:
- Shopee Indonesia
Bank Transfers Top Payment Method in Indonesia
All online payment methods are available in Indonesia, but the top three payment methods include:
- Bank transfers
- Cash on delivery
- Credit cards
Bank transfers amount to 73 percent of all payments made online, while cash on delivery is 25 percent and credit cards amount to two percent of payments.
Diverse Online Shopping Habits for Indonesians
Indonesians also have diverse online shopping habits, with the top five products for online selling in the country being:
- Clothes and accessories
- Personal care items
- Food and beverages
- Mobile phones and tablets
Shipping to Indonesia
Indonesia is one of the leading eCommerce hubs of Southeast Asia, and you’ll find many options for shipping to Indonesia from the U.S and elsewhere across the world. To that end, here’s a look at some couriers that offer shipping to Indonesia, shipping restrictions to the country and important tax and duty information!
Local Couriers in Indonesia:
Some local couriers in Indonesia to consider using, especially for last-mile delivery, include:
- ACI Express
- Toll Global Express
- Global Express International
- Royal Express Indonesia
- Anekatrans Persada Indonesia
International Couriers in Indonesia:
Most international couriers also provide services for shipping to Indonesia. A few of these include:
Easyship can help you with shipping to Indonesia!
We offer hybrid shipping solutions with different international and local couriers, making order fulfillment fast, reliable and affordable. You can use our shipping rates calculator to find the cheapest shipping to Indonesia as well as the fastest and best value options. Our tax and duties calculator can also help you calculate all the taxes and duties you'll have to pay when shipping to Indonesia from the U.S or elsewhere around the world.
Shipping Restrictions and Prohibitions in Indonesia
Indonesia, like any country, has its own set of import restrictions and prohibitions. Here’s a closer look at them!
Restricted items in Indonesia:
- Telecommunication devices
- Flora and fauna
- Ozone-depleting substances
Prohibited items in Indonesia:
- Fireworks of all types
- Animal products
- Precious stones
- Computer software
To see a more complete list of prohibited and restricted items, click here.
VAT and Import Duties in Indonesia
The CIF method is used for tax calculation in Indonesia, meaning that the tax is calculated based on the value of the products and their shipping cost.
Imports face a $100 USD tax and duty threshold in Indonesia, while the country also imposes a VAT of 25 percent.
Fashion, jewelry, toys and sports items face 15 percent customs duties while home items, health and beauty, and audio and video products face a 10 percent duty.
Indonesia: Southeast Asia’s eCommerce Powerhouse.
Indonesia is the center of eCommerce in Southeast Asia and offers a promising future for online merchants seeking lucrative opportunities abroad.
Easyship can be your partner when shipping to Indonesia. Be sure to sign up today to start shipping to Indonesia - and around the entire world!
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