How to Successfully Import Chemicals to Indonesia
Importing chemicals into Indonesia is quite lucrative with the rising Indonesian chemical market size. Indonesia is a fast-rising chemical market valued at $17.6 billion and is expected to rise to $35.1 billion by 2030. Before you start importing chemicals into Indonesia, some necessary procedures should be taken, and you should also have some documents.
This article would assist in providing everything that you need to know about importing chemicals into Indonesia. Keep reading to find out about the steps involved and the necessary documents.
Introduction to Indonesia Chemical Market
Indonesia has the world's largest archipelago, with about 17,000 islands and a diverse chemical market, including inorganic, organic petrochemicals, and oleo chemicals. Here are some of the basic chemicals in Indonesia's chemical market:
- By Type
One of the main chemicals used in Indonesia is Ethylene, a common hydrocarbon used as oxy-fuel in high-velocity mobile objects, metal-cutting, welding, rubber extraction, thermal spraying, refrigerant, and other purposes. Another basic chemical used is Polypropylene, with a high combustion performance.
- By Application
The basic applications of chemicals in Indonesia include the manufacturing of pulp and paper, detergents and soaps, disinfectants, and coatings. The rapid demand for more recyclable and sustainable packaging materials has made consumers more linear to paper use. The use of chemicals to manufacture paper has increased demands for chemicals in the paper and pulp sectors.
- By Sales Channel
Based on sales channels, the buyer-to-buyer segment has acquired the highest revenue share in Indonesia's basic chemical market. This is because most of the chemicals are used by industries to manufacture other chemicals. Additionally, several buyer-to-buyer marketplaces are set up for selling and buying several chemicals.
How Can I Import Chemicals To Indonesia From China?
Importing chemicals from China into Indonesia is quite a smart business move due to the advantages associated, such as cost and ease of shipping. However, certain procedures, regulations, and documentation have been in place by the Indonesian government and must be followed by whoever wants to start importing chemicals into Indonesia from China. These basic procedures, steps, and documentation include:
Pre-Shipment Inspection (PSI)
A pre-shipment inspection is a process whereby trade operators (suppliers, buyers, agencies) get their products inspected before they're imported or exported. This ensures the product in question is without defects, of the right quantity and quality, and meets safety requirements. The process involved in a Pre-Shipment Inspection is as follows:
- Inspection Visit
- Quantity and Quality Verification
- Random Selection
- Conformity Verification
- Safety and function test
- Workmanship and Cosmetic Check
- Inspection Report
For the pre-shipment inspection to be carried out, the following documents are required:
- Company’s Registration Number
- An industrial business license issued by the regulatory authority or other business licensing body
- Import plan
- Chemicals inventory list that the company owns
- List of quantity and quality of the equipment used during the production and the production process flow
- List of workers involved in the production
- The safety data sheet for the chemicals
- Types of products and the production capacity
- The production performance report for previous years
- Chemical utilization for previous years
- Production plan and chemical requirement for a year of production
SGS is the leading and the commonly used inspection company by Indonesian importers. As such, it is advisable you consider using the same company as well since it is well known by the Custom Authority of Indonesia.
Other Necessary Documents for Importing Chemicals into Indonesia
After the pre-shipment inspection has been carried out, you would need to apply for a recommendation through the SINas (State Industrial Information System). The necessary documents needed to apply for this recommendation include the following:
- The type, HS tariff, and CAS number of the chemicals to be imported
- Identification information of the company. This includes the name, address, business field, capacity and production type, and company’s business license.
- Intended use of the chemical to be imported
- The import quantity
- The pre-shipment verification report should also be provided
- Exporting country, country of loading, and the designated port
Some other necessary documents that might be required of you during the process of importation after your recommendation has been granted include;
- Bill of landing
- Packing list
- Insurance certificate
- Commercial invoice
How to Import Chemicals to Indonesia from China: Step by Step
Importing chemicals into Indonesia from China is a lucrative business that can also be complicated. You'd need to coordinate the shipments and also get the items through Indonesian and Chinese customs, while also ensuring you don't violate any of the regulations that have been put in place. It's important you know how importing chemicals into Indonesia from China works, so you can get through the importation process easier and faster. The following are the steps involved in importing chemicals into Indonesia from China:
- Check Trade Laws In China and Indonesia
Before you go any further with importing chemicals into Indonesia from China, ensure you're up-to-date about the restrictions and regulations regarding importing into Indonesia and exporting from China. Both Indonesia and China have different regulations, which might often change, so you must always be informed.
- Choose a Shipping Method
Before you start shipping your products, you must decide on a shipping method. The shipping method will depend on the type of chemical that you want to import. Shipping methods usually depend on the quantity and weight of the chemicals and the basic requirements for your shipping budgets and time.
- Find a Supplier
You can easily get a Chinese supplier willing to sell the chemicals you want to buy online. When you develop a beneficial relationship with the supplier, you can access quality chemicals while also making business benefits for both the supplier and you.
- Estimate your tax liability for importing chemicals
The Indonesian custom on their import adds a 10% VAT. Other fees and taxes might arise due to the chemical you’re shipping. It's important you know about the basic regulations, so you'd know what taxes and fees you're paying. This would help prevent unexpected expenses.
- Define your shipment's Incoterms
If you're new to importing, you probably never heard of Incoterm. It is internationally recognized terms and rules that distribute liabilities and responsibilities between sellers and buyers when importing and exporting goods or products. They address who's responsible for every shipping-related task.
- Customs clearance from China to Indonesia
Another necessary procedure in importing goods is the clearance of goods. This is when your goods are accessed, necessary permits obtained, payments made, and goods collected.
Chemical importation into Indonesia from China would aid in increasing profits for business while giving you access to a wider and diverse range of chemicals. Indonesia has a booming market for chemicals; however, due to the hazardous nature of most chemicals, it requires proper handling. The Indonesian government has put in place several procedures, steps, and documentation that would help ensure safety during the importation and collection process at any Indonesian port.
How Can Camachem Help Me Import Chemicals in Indonesia?
Camachem is a reliable company with a wealth of experience in shipping chemicals to different countries across the globe. The company has handled the exportation of chemicals from China to various countries, including Indonesia. All you have to do is visit the website, make an order for any chemical of your choice, acquire appropriate approvals as indicated above, and the rest will be handled by us.
Our company has exported various chemicals to Indonesia through Tanjung Priok port. They include:
- Caustic Soda Flakes
- Caustic Soda Pearls
- Sodium Bicarbonate
- Soda Ash (Dense and Light)
- Sodium Metabisulfite (SMBS)
- Sodium Sulfide
- SLES 70%
- Many others
Our company is reputable for production, packing, and shipping chemicals in large quantities to clients across different continents. Therefore, once your documents are in place, you can contact Camachem to import the best chemicals.
Camachem preparing Caustic Soda to Jakarta Port
Camachem preparing Mining Chemicals for Jakarta Port
Potassium Amyl Xanthate 90% (PAX 90%) in our warehouse