Pan Asian e-Commerce Alliance

PAA – Indonesia Country Data

Indonesia is a Democratic country which is Governed by a presidential system. Declaration of Independence was officially proclaimed on August 17, 1945.

Geographically, Indonesia is the largest archipelago country, and recognized as the greatest maritime country in the world, comprising 17,508 big and small islands, stretching along 5,120  kilometers from east to west, between the Indian ocean and the pacific ocean, and 1,760 kilometers from north to south.  Thera are about 400 mounts, most of which are volcanoes. Large part of the territorial (81%) is sea, while the rest  (19%) is terrestrial land. Only about 6,000 islands are inhabited, of which 5 main islands and 30 smaller island groups are home to the majority of the population. The main islands are Sumatera, Kalimantan (The third biggest island in the world), Sulawesi, Irian Jaya and Java which is home to about 70% of the country’s population. The national population from the 2000 national census is 206 million, and the Indonesian Central Statistics Bureau estimate a population of 222 million for 2006.

The main cities are Jakarta, Surabaya, Medan, and other important cities are Bandung, Denpasar, Semarang, Yogyakarta, Padang, Palembang, Makassar, Manado, Banjarmasin, Balikpapan, and Jayapura.

Trade Statistics and Macro-economic information

Indonesia is a member of WTO and ASEAN. Share of foreign trade in country’s GDP was more than 70% in 2006. Main of Indonesia’s export-import partners are: China, Japan, USA, Thailand, Malaysia, Singapore, Australia, South Korea, Germany, Taiwan, England,  and India. The trade statistics can be shown at the table below:

The commodities mainly exported are crude oil, natural gas, coal, prawn, cacao, rubber, nickel, oil palm, fishing fish, garment & textile, coconuts, and coffee. The commodities mainly imported are fuels & oils, automotive, computers, iron & steel, electric & electronic equipment, and organic chemicals.
The official currency is Indonesian Rupiah (IDR).
Macro economic can be shown as follow:

Tax and Customs Clearance Information

• Taxation

  Income tax in Indonesia is progressive and applied to both individuals and enterprises. Tax rate for individuals is depend on the annual income, for example, 5% tax rate for annual income up to Rp. 25 million, and 35% tax rate for annual income over Rp. 200 million. A self-assessment method is used to calculate the tax. Land and building tax is payable annually on land, building and permanent structures. The  effective rates are nominal, typically not more than one tenth of one percent per-annum (0.1%) of the value of property. The others categories of issues regarding taxation related to investment process and in doing business in, ie  losses, depreciation and amortization rates, value added tax and sales tax luxury goods, withholding tax,  stamp duty, avoidance of double taxation agreements, and incentives.

Import/Export Regulatory Requirements

• Import
  Inward manifest cargo must be reported electronically to customs not later than 24 hours after arrival time.
  Indonesian Customs start to implement Electronic Data Interchange (EDI) system for import services to trade community since 1997.  Import of certain goods requires license or permit. Base on the Indonesian Customs Tariff Book (BTBMI), importer  may calculate the import duty using self-assessment method, then submit their customs declaration electronically. Duty and tax payment related to the import activity must be fulfilled to the Bank that already online using EDI system.

  Export
  Indonesian Customs start to implement EDI system for electronic customs declaration for export on 2004. Goods can be loaded to the ship or aircraft after customs has given approval. A few commodities require export permit, and certain goods are controlled to prohibit. For more details, visit Directorate General of Customs & Excise at www.beacukai.go.id

  Information on Starting a Business

  All investment projects which are approved by the Investment Coordinating Board or by the Office of Investment in the respective districts, including existing PMA and PMDN companies expanding their projects to produce similar product in excess of 30% of installed capacities or diversifying their products, will be granted some facilities and incentives, such as import duty, tax (value added tax and sales tax on luxury goods), restitution/drawback (for export manufacturing), excise, allow to sell scrap or waste to Indonesian customs area (for the industrial companies located in the bonded areas), etc. Visit www.bkpm.go.id for more details.

Related Government Agencies

• Central Bureau of Statistics
• Bank Indonesia (Central Bank)
• Indonesia National Single Window

Trade and Logistics Activities

• Ministry of Trade

Chambers and Associations

• Indonesian Chamber of Commerce and Industry,