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Get assistance from experts with a decade of experience in assisting international business owners expanding into Indonesia.
Avoid any bureaucratic complexity when closing your company by engaging with our experienced legal advisors.
What type of legal entities should you choose to register a company in Indonesia? We can assist you in choosing which is the best one to grow your business.
To help businesses survive during this unfortunate time, InCorp provides corporate recovery in Indonesia and insolvency services.
Granting an environmental permit in Indonesia needs an Environmental Impact Analysis (AMDAL) in advance.
Obtaining property & land ownership in Indonesia offers some challenges for foreigners. However, buying property in Indonesia is attainable with specific resources and documents.
Recent regulatory changes have a knock-on effect on Indonesia's Merger & Acquisition landscape. Check on how we can navigate you through your M&A in Indonesia.
InCorp provides Virtual Office services Indonesia in various locations: Jakarta, Bali, Semarang, Surabaya, and Batam.
Applying for a B3 waste permit in Indonesia is important to ensure your business aligns with government regulations.
Business process outsourcing in Indonesia is a viable option to streamline bureaucratic complexities that hurdle your business expansion objectives.
InCorp offers a complete range of accounting service Indonesia, from tax reporting to auditing.
With professional financial audit services from InCorp, you can ensure all accounting activities are accurately recorded and compliant with Indonesian regulations.
Using an Employer of Record service to set your roots in Indonesia opens the doors to new opportunities in the country.
Financial and Operational Resilience services from InCorp are developed to support businesses and help them survive during this difficult time.
Payroll services in Indonesia are a practical solution to avoid unnecessary complexities while you focus on growing your business.
Using a recruitment agency in Indonesia will help you hire the best candidates for your company, saving you time and money.
Tax consulting in Indonesia are the shortcuts to fulfill the administrative obligations with high accuracy and in a timely manner.
The Indonesian government promotes tax holidays as one of the fiscal incentives to attract major foreign direct investment in Indonesia.
Operating businesses in Indonesia, entrepreneurs must comply with the regulations accordingly, especially concerning taxes.
Our expert consultants on tax reporting services in Indonesia ensure prompt fulfillment of administrative obligations with utmost accuracy.
Streamline your global business operations with a Global Mobility Service as one complete solution from InCorp Indonesia.
Immigration in Indonesia is one of the strictest and most complex processes due to its ever-changing regulations. InCorp provides a seamless experience in obtaining your stay and work permits.
Avoid any hassles by engaging with an experienced visa agent in Indonesia.
A dependent visa Indonesia is a document that allows foreigners to bring their family while settling down in the country.
Investor KITAS Indonesia is a stay permit that offers many benefits to investors that invest in the country.
Overseas Visas are required for Indonesians who are planning to stay abroad for an extended period of time.
KITAP is a permanent stay visa for foreigners who have intentions to stay in Indonesia.
Foreign retirees often find their plans stuck due to the complex visa application process. InCorp helps expedite the process.
Obtaining a social visa is daunting if you are not familiar with the countrys complex bureaucratic processes. Consult with us for a seamless Indonesian visa application experience.
Foreigners married to an Indonesian citizen are eligible for a spouse-sponsored KITAS.
Learn how to obtain an Indonesian tourist visa seamlessly and securely, directly from a trusted visa and travel agent.
Get assistance from a trusted visa agent in Indonesia to make your traveling plan to Indonesia even more convenient.
Expedite your Indonesian work permit application process by engaging with a trusted visa agent.
If you’re a member of the Indonesian diaspora and have lost your citizenship, you can get a diaspora visa to return home more quickly. InCorp Indonesia can help you take full advantage of this benefit.
All imported goods must obtain permission granted by specific governing bodies prior to entering the local market.
Learn more about the cosmetic product registration services in Indonesia.
Learn more about exporting goods to Indonesia.
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Learn how to go through halal certification in Indonesia directly from experts successfully.
Learn more about the health supplement product registration services in Indonesia.
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Learn more about importing goods from Indonesia
An Importer of Record in Indonesia is a legal service that enables companies to import products into Indonesia, through an import partner.
Learn more about the medical device registration services in Indonesia.
Learn more about the SNI registration services in Indonesia.
Register a trademark is necessary to avoid legal issues in the future. InCorp can help you with Trademark Registration services in Indonesia.
Compliance is one of the most challenging parts of business overseas, especially in a country packed with complex bureaucratic processes such as Indonesia.
Updating business documents to align with your company’s growth can be a hassle.
Due Diligence services are needed to assess the credibility of the company or partner you wish to work with or acquire in Indonesia
From Company Regulations to Employment Agreement Drafting, Employment law services from InCorp will help you to compliance with employment policy in Indonesia.
InCorp’s legal consultation services in Indonesia are crafted to help your business settle and fully comply with the latest regulations.
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Transfer Pricing in Indonesia occurs when a company performs an internal transaction within the same business group or its subsidiaries
InCorp's transfer pricing advisory services in Indonesia are marked by the objective to support our clients' business needs.
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As the market-entry consulting firm in Indonesia, InCorp provides a wide range of customized solutions to ease the business incorporation process.
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InCorp can help you find a trusted Buying Agent Indonesia for product sourcing in Indonesia. Contact us now for a free consultation.
IMEI Registration in Indonesia is necessary to ensure telecommunication devices from abroad can function properly in Indonesia.
With offices in Jakarta, Bali, Semarang, SUrabaya, and Batam, InCorp is ready to assist you as a local partner and distributor in Indonesia.
InCorp can help you to select the trusted local partners to import and distribute your products in Indonesia.
Improve your business by knowing the market conditions in Indonesia through market research services in Indonesia.
InCorp can help you gain information about your competitor's product through mystery shopping.
Global trade is a dynamic stage where countries play to their strengths and address their weaknesses, which holds for trade in Indonesia. Thanks to its valuable resources and strategic location, the government has achieved trade surpluses.
However, these successes come with their own set of challenges that require careful consideration. This article will explore the obstacles facing Indonesia’s trade surplus challenges. We’ll examine how domestic policies, global trends, and ongoing economic growth interact in this context.
Indonesia’s trade balance showcased a surplus of USD 3.45 billion in June 2023. The achievement extends a trend that has remained unbroken for 38 consecutive months since April 2020.
According to Statistics Indonesia (BPS), Indonesia’s exports from January to June 2023 reached USD 128.66 billion. However, it represents a decrease of 8.86% compared to the same period in 2022.
Meanwhile, non-oil and gas exports amounted to USD 120.82 billion, showing a decline of 9.32%. Economic experts argue that this surplus is not due to a surge in business transactions. The decline in export and import performance is expected to align with the global trade slowdown resulting from weakened global demand.
Read more: MSMEs Exports Are Expected to Push Indonesian Trade Forward
In June 2023, Indonesia’s exports reached USD 20.61 billion, marking a decline of 5.08% compared to May 2023 (month on month/MoM) and a decrease of 21.18% from June 2022 (year on year/YoY).
Both oil and non-oil exports experienced reductions, each by 3.64% (MoM) and 5.17% (MoM), respectively. Export performance weakened across all sectors in June 2023.
The mining sector encountered the most significant decline at 15.30% (MoM), followed by the agricultural sector at 7.89% (MoM) and the processing industry sector at 2.24% (MoM).
The decline in exports can be linked to the reduced prices of several crucial Indonesian commodities on the international market. These include a 6.78% decrease in coal prices, a 3.90% decrease in crude palm oil (CPO) costs, a 1.52% decrease in rubber prices, a 1.58% decrease in aluminum prices, and a 1.19% decrease in nickel prices.
Despite the export slowdown in June 2023, some non-oil export products still experienced significant increases on a MoM basis. These include the following:
The value of Indonesia’s imports in June 2023 was recorded at USD 17.15 billion, marking a 19.40% decline compared to May 2023 (MoM). This decrease in import value is attributed to a weakening in oil and gas imports by 29.12% MoM and non-oil and gas imports by 17.73% MoM.
The reduction in imports in June 2023 spans across all categories of goods. Consumer goods contributed the most to this decline, which decreased by 23.33% MoM, followed by raw materials/auxiliaries, down by 19.24% MoM, and capital goods, down by 17.97% MoM.
The Minister of Trade, Zulkifli Hasan, stated that the decrease in imports of consumer goods is in line with the weakening Consumer Confidence Index (CCI) of June 2023, which decreased to 127.1 from the previous 128.3 in May 2023.
During the first semester of 2023, Indonesia’s total imports reached USD 108.73 billion, experiencing a 6.42% decrease compared to the first semester of 2022, which was USD 116.18 billion YoY.
Indonesia’s exports mainly contribute to non-oil and gas shipments to China, the United States, and Japan. China has been Indonesia’s largest export destination for the last seven years. Indonesia predominantly exports significant commodities like mineral resources, metal ores, and steel to China.
Trade between Indonesia and China reached USD 133.6 billion in 2022. The Ministry of Trade reported that Indonesian exports to China were valued at USD 65.9 billion during the same year.
Luhut Binsar Pandjaitan, the Coordinating Minister for Maritime and Investment Affairs, highlighted that technology transfer is a significant factor in Indonesia’s collaboration with China.
According to Minister Luhut, China is keen to share its technologies, specifically for the downstream nickel industry, contributing to USD 34 billion in export value in 2022.
Moreover, from 2014 to 2022, Chinese investments in Indonesia amounted to USD 30.8 billion, encompassing 15,906 projects. This cumulative figure positioned China as the third-largest foreign investor in Indonesia during that period.
According to BPS data, the commodities with the most significant contribution to Indonesian non-oil and gas exports in June 2023 are as follows:
Despite some economic pressures, Indonesia’s exports are projected to remain robust, and therefore, Indonesia’s trade balance will still potentially achieve surpluses in the future.
Economic experts estimate that the trade balance will continue to achieve an average monthly surplus ranging from USD 2 billion to USD 3 billion shortly. However, this surplus is narrower than the previous year’s average of USD 4 billion to USD 6 billion.
The forthcoming export and import performance will be driven by various commodity types, including mineral commodities that are beginning to show signs of recovery.
Indonesia’s export performance will also be influenced by government efforts to promote the downstream of natural resources (SDA) and bare minerals, which are expected to yield positive outcomes for enhancing export value-added.
Despite the challenges, economic experts project that Indonesia’s export remains strong, influenced by government efforts to promote downstream natural resources (SDA) that can potentially result in positive outcomes for enhancing export value-added.
Businesses considering maximizing the potential of Indonesia’s export performance can engage InCorp Indonesia to ensure regulatory compliance before exporting their products to the Southeast Asian region and beyond.
Similarly, businesses that aim to penetrate their products into the Indonesian market can seek help from InCorp Indonesia for services related to product registration to obtain permission granted by specific governing bodies before entering the local market.
An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.
Disclaimer: The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.
We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.
We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.