Trade Guide: Indonesia

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Indonesia(officially the Republic of Indonesia) is a sovereign country in Asia and Oceania. It is the largest island country in the world by the number of islands, with more than fourteen thousand islands. Indonesia has an estimated population of over 255 million people and is the world's fourth most populous country and the most populous Muslim-majority country.

Customs, technical standards, trade regulations

Indonesia’s import customs can get quite complicated. However, as long as you have the correct documents for import, and a clear understanding of Indonesian Customs rules, you can make significant savings for your business.

Traders should also note that alcohols are subjected to an import tariff of 150%.

Indonesia is well-known for its transparent approach on setting technical regulations. With the Government agencies being relatively open regarding why regulations have been administered or altered. For example, as part of an ongoing effort to combat the spread of fruit fly based diseases, Indonesia limited the port of entry into Indonesia for all citizens of countries without a recognised food safety system.

If goods are imported and re-exported within a year, traders need not to pay any import duty. As long as they obtained a guarantee of the same value as the amount of duty and taxes that would otherwise be owed upon the importation of the goods.

Trade Policy and Free Trade Agreements

The National Standardization Agency Badan Standardisasi Nasional (BSN) is responsible for the formulation of the Indonesian National Standards (SNIs). The SNIs stipulate the standards by which products, both local and external, are judged. For example, the importation of most second-hand goods is prohibited. It is important to note that linen clothing and natural silk goods are not admitted in commercial parcels.

Indonesia is currently signatory to the following Free Trade Agreements: ASEAN Free Trade Area, ASEAN-Korea Free Trade Area, ASEAN-China Free Trade Area and Indonesia-Japan Economic Partnership Agreement.

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