Indonesia Market Overview 2025

Indonesia Market Overview 2025

In 2024, Vietnam–Indonesia bilateral trade reached approximately USD 16.7 billion, with Vietnam’s exports valued at USD 6.19 billion, a 22% year-on-year increase.
From 2025 onward, both countries have upgraded their relationship to a Comprehensive Strategic Partnership, creating stronger opportunities for trade, investment, and logistics cooperation within ASEAN.

Indonesia — the largest economy in Southeast Asia with a population exceeding 280 million — continues to see rising demand for industrial goods, plastics, chemicals, and metals. However, the government has tightened import controls to protect domestic production — a factor that Vietnamese exporters should pay close attention to when entering this market.

Vietnam’s Major Export Categories to Indonesia

Additionally, textiles, footwear, and coffee have shown strong growth, particularly within the consumer goods segment.

Rice Exports and Indonesia’s Import Suspension Policy

Rice Exports and Indonesia’s Import Suspension Policy

Reasons for the Import Suspension Until End-2025

• Surplus Domestic Supply:
  Indonesia’s 2025 rice output is projected at 34–35 million tons, while national reserves exceed 4 million tons, double the 2024 level.
• Food Self-Sufficiency Policy:
  The Indonesian government aims to become fully self-sufficient in rice, corn, sugar, and salt between 2025 and 2027, temporarily halting imports to support local farmers.
• Price Stabilization Measures:
  The state-owned food agency Bulog has been tasked with purchasing at least 3 million tons of locally produced rice to maintain price stability and reduce reliance on imports.

Impact on Vietnamese Exporters

– Sharp Decline in Orders:
In the first half of 2025, Vietnam’s rice exports to Indonesia fell by more than 95% compared to the same period in 2024.

– Price & Competition Pressure:
Indonesia’s import suspension has lowered global rice prices while increasing domestic stockpiles in Vietnam.

– Adaptation Strategies:

• Focus on premium, fragrant, and organic rice for alternative markets such as the Philippines, the Middle East, and Africa.
• Closely monitor Indonesia’s trade policy — the ban may be lifted earlier if weather patterns or local yields fluctuate.
• Review logistics contracts and inventory management to minimize costs while the market remains restricted.

Indonesia’s Import Regulations (Updated September 2025)

Key Legal Framework

MOT Regulation No. 16/2025 – effective August 29, 2025, replacing MOTR 36/2023.

• Defines three import categories: Freely Importable, Restricted, and Prohibited Goods.
• Simplifies the licensing process for API-U (General Importers) and API-P (Producer Importers).

Required Documents

• Commercial Invoice
• Packing List
• Bill of Lading / Air Waybill
• Certificate of Origin
• Specific permits: quarantine, Halal certificates, or import licenses for “restricted” goods

Customs Declaration & Duties

• Electronic declaration via INSW (Indonesia National Single Window) is mandatory.
• Import duties range from 0–40%, depending on HS code, and all imported goods are subject to 10% VAT.
• Customs authorities may conduct physical inspections or x-ray scans before clearance.

Prohibited & Restricted Imports

• Prohibited: weapons, narcotics, politically sensitive or obscene materials.
• Restricted: food, pharmaceuticals, electronics, and telecommunications equipment — requiring permits from BPOM or the Ministry of Communication and Information Technology.

>> Read More: What is CO Form D? A Complete Guide for Export-Import Businesses

Export Procedures from Vietnam to Indonesia

Export Procedures from Vietnam to Indonesia

Document Preparation
Commercial Invoice, Packing List, Bill of Lading / Air Waybill, Certificate of Origin, and quarantine certificates if required.

Export Declaration in Vietnam
Submit through the VNACCS/VCIS system ensuring document consistency.

Import Declaration in Indonesia
The importer or logistics partner files via INSW, classifying goods under MOTR 16/2025.

Tax Payment & Customs Clearance
Pay import duty and VAT; complete any customs inspection processes.

Post-Clearance Management
Keep all records and shipping documents for audit and future shipments.

>> Read More: Phytosanitary Certificate — A Complete Guide for Import and Export Businesses

Recommendations for Vietnamese Exporters

Indonesia remains a large and dynamic ASEAN market, with ongoing potential for machinery, plastics, chemicals, and steel.
However, for rice exports, Vietnamese businesses should adjust strategies in light of Indonesia’s import suspension through the end of 2025.

Exporters are advised to:

• Diversify export markets to reduce over-reliance on a single destination.
• Stay updated on import regulations, particularly MOT Regulation 16/2025.
• Partner with experienced logistics providers to optimize operations, costs, and compliance.

Export Logistics Solutions to Indonesia with KFLV

Export Logistics Solutions to Indonesia

Indonesia’s market is expanding rapidly, yet its import and customs processes are becoming increasingly complex — especially for industrial, chemical, and agricultural goods.

King Freight Logistics Vietnam (KFLV) partners with exporters to ensure reliable shipping schedules, smooth customs clearance, and optimized logistics costs across ASEAN.

KFLV Supports You With:

• International shipping Vietnam – Indonesia – ASEAN (FCL & LCL) — safe and on schedule.
• Customs and documentation support for industrial, plastic, and agricultural products.
• Cost-effective logistics solutions that minimize storage delays and handling fees at Indonesian ports.

Hotline: +84 (0) 938 188 796
Email: cs1@hcm.kfkingfreight.com

Contact KFLV today for a complete, secure, and efficient logistics solution — fully compliant with Indonesia’s latest 2025 import regulations.