Procurement and sourcing and import from Indonesia

Purchasing products or services seems easy, but this is not always the case. How do you know that you have the best deal, especially if you haven’t done much business before in Indonesia?

It already helps if you have a structured approach for your procurement and to keep your options open. Working with a local consultant or agency may help to identify more potential suppliers and to get the products that you just bought accross the border to their destination.

Find the right suppliers in Indonesia

Indonesia, located in Southeast Asia, exports a diverse range of products that reflect its natural resources and industrial capabilities. The country is known for exporting commodities such as palm oil, rubber, and coal, which are significant contributors to its economy. Indonesia also exports natural gas and minerals like tin and nickel, leveraging its rich reserves in these resources.

Wages in Indonesia vary widely across different sectors and regions. Generally, wages are lower compared to many developed countries, which contributes to competitive production costs. The cost of living in major cities like Jakarta and Surabaya can be moderate, depending on location and lifestyle choices.

Indonesia is also known for its manufacturing sector, particularly in textiles, footwear, and electronics. The country has a strong agricultural base, exporting products like coffee, tea, cocoa, and spices such as cloves and nutmeg. Additionally, Indonesia is a significant exporter of seafood products, benefiting from its extensive coastline and marine resources.

Shipping your products

If you purchase tangible products, you have to ship them out of the country. Depending on the country where you want these goods, this may have implications.

First of all you may have to pay import duties or settle VAT. There are certain thresholds for both of these charges, e.g. while importing in the EU you don’t have to pay import duties on any shipment worth less than € 150.

There may also be non-financial barriers, like certifications or approvals to be obtained. Especially for food, cosmetics or medicine this may be the case. Check this in advance, even before you invest in your marketing.

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Almost every country or trade block in the world has its own detailing on the international HS-code list. With our report you strongly reduce the risk on misclassifications, delays and higher custom duties than expected.

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A structured sourcing approach in Indonesia

Step 1

Supplier search

Try to identify in total 6 to 10 possible suppliers and check their websites. Approach them with a general request to see whether they have the products or services you need.

Step 2

Supplier selection

Submit your requirements to a group of three to five selected suppliers and ensure you get the right comparable quotations to make a choice. Negotiate with one or two of them to get the best result.

Step 3

Supplier management

Now start collaborating, making sure you have an efficient ordering process and limited risks where it comes to quality control and shipping the products.