The Embassy of The Republic of Indonesia in Berlin > Trade with Indonesia

Trade with Indonesia

Elaborate information regarding trade-related issues will be provided separately by the Trade Attache’s office.

INDONESIA NATIONAL SINGLE WINDOW (INSW)

INSW is an integrated public service system, which provides facilities for filing and processing standard information electronically, in order to complete all activity processes in handling the export, import and transit of goods traffic, to improve national competitiveness. The objectives of applying the NSW System in Indonesia, in general, can be grouped into 4 quantities, namely efficiency (improve service efficiency by increasing the speed of export-import services and create a certainty of service time), effectiveness (increase the effectiveness of supervision by integrating and reconciling data between all relevant agencies), optimization (implementing system automation in all agencies and integrated data), and accuracy (ensure data validity and accuracy).

Benefits for the Business World

  • Provide certainty about the costs and time needed in services related to import-export
  • Improve the competitiveness of domestic products
  • Expand market access and sources of production factors
  • Increasing effectiveness and efficiency in the use and allocation of resources
  • Encourage the growth and development of entrepreneurship
  • Support the implementation of Good Corporate Governance in the completion of exports and imports

Benefits for the Government

  • Facilitate increased speed in the process of customs release and clearance of cargoes
  • Providing a service system that is easy, inexpensive, convenient, safe, & provides business certainty
  • Creating better risk management
  • Improve data validity and accuracy & eliminate data redundancy and duplication
  • Facilitate law enforcement in relation to import-export activities
  • Increasing protection of national interests because of the traffic of exported-imported goods
  • Optimizing state revenues
  • Support the application of the principles of Good Public Governance in the service of export-import

More information on INSW could obtained at https://www.insw.go.id/.

Economic Stimulus Packages of the Indonesian Government

In order to navigate through uncertain global environment and to stimulate domestic economic growth, Indonesia has periodically launched a series of economic policy package. The packages are an integrated part of Indonesia’s economic reform with a key objective to boost productivity, expedite the process of doing business in various sectors to stimulate medium-term investments, as well as nurture new sources of growth. From the period of 2015-2018, the Indonesian Government has released 16 economic stimulus packages as listed below:

Package

Unveiled

Main Points

1st

9 Sept 2015

• Boost industrial competitiveness through deregulation
• Curtail red tape
• Enhance law enforcement & business certainty

2nd

30 Sept 2015

• Interest rate tax cuts for exporters
• Speed up investment licensing for investment in industrial estates
• Relaxation import taxes on capital goods in industrial estates & aviation

3rd

7 Oct 2015

• Cut energy tariffs for labor-intensive industries

4th

15 Oct 2015

• Fixed formula to determine increases in labor wages
• Soft micro loans for >30 small & medium, export-oriented, labor-intensive businesses

5th

22 Oct 2015

• Tax incentive for asset revaluation
• Scrap double taxation on real estate investment trusts
• Deregulation in Islamic banking

6th

5 Nov 2015

• Tax incentives for investment in special economic zones

7th

4 Dec 2015

• Waive income tax for workers in the nation’s labor-intensive industries
• Free leasehold certificates for street vendors operating in 34 state-owned designated areas

8th

21 Dec 2015

• Scrap income tax for 21 categories of airplane spare parts
• Incentives for the development of oil refineries by the private sector
• One-map policy to harmonize the utilization of land

9th

27 Jan 2016

• Single billing system for port services conducted by SOEs
• Integrate National Single Window system with ‘inaportnet’ system
• Mandatory use of Indonesian rupiah for payments related to transportation activities
• Remove price difference between private commercial and state postal services

10th

11 Feb 2016

• Removing foreign ownership cap on 35 businesses
• Protecting small & medium enterprises as well as cooperatives

11th

29 Mar 2016

• Lower tax rate on property acquired by local real estate investment trusts
• Harmonization of customs checks at ports (to curtail dwell time)
• Government subsidizes loans for export-oriented small & medium enterprises
• Roadmap for the pharmaceutical industry

12th

28 Apr 2016

• Enhancing the ease of doing business in Indonesia by cutting procedures, permits and costs

13th

24 Aug 2016

• Deregulation for residential property projects for low-income families

14th

10 Nov 2016

• Creating a roadmap for the nation’s e-commerce industry:
– easing and widening access to funding
– offer tax incentives
– harmonize regulations and gradually develop a national payment gateway
– promote e-commerce awareness campaigns and improve e-commerce education
– accelerate the development of high-speed broadband network
– improve the e-commerce logistics system

15th

15 Jun 2017

• Improving Indonesia’s logistics:
– enhance the role of transportation insurance
– reduce costs for logistic service providers
– strengthen the Indonesia National Single Window (INSW) authority
– reduce the number of prohibited and restricted goods

16th

16 November 2018

• Improving Indonesia’s investment climate:
– a revision of the country’s Negative Investment List
– an expansion of Indonesia’s tax holiday program
– the provision of tax incentives for the newly mandated conversion of export earnings to rupiah

 

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