How to Rent a Warehouse in Indonesia as a Foreign Company
Table of contents
When renting a warehouse in Indonesia, there are several factors to consider to ensure your company’s ability to effectively serve your customers in an efficient, effective, and profitable manner.
Preferring one warehouse location to another is a decision that can have far-reaching impacts on a business and its operations. Finding a balance between a location that is convenient, suitable and available at an acceptable cost is challenging no matter the region you are doing business in. When you are operating in a foreign country, this difficulty is magnified.
Historical data indicates warehouse pricing in Jakarta sits almost in direct correlation with overall property prices. If this trend continues and housing market prices rise, warehousing costs would also increase.
Popular areas in North Jakarta
- Tanjung Priok
To clarify, these areas are located close to Tanjung Priok Jakarta International Seaport.
Popular areas in East Jakarta
- Pulo Gadung
- Jalan Raya Bekasi Barat
- Near Jagorawi toll road
These locations are container-friendly and close to industrial areas as well as only a short distance from the business centers of South and Central Jakarta.
While West Jakarta is the closest district to Soekarno-Hatta International Airport and South and Central Jakarta, warehousing in that area is not as appealing for most businesses as the North and East Jakarta areas. In addition, West Jakarta has a high population density, and access is not container friendly.
Other areas representing good value
- Bekasi Bogor
These areas may also require greater road transport solutions, but offer greater cost savings for warehouse renters.
Emerhub’s service can take into account your warehousing needs, providing quotes on a range of locations so you can decide on a location. Comprehensive quotations allow you to weigh up the cost to benefit ratio of selecting a strategic location (near a harbor, airport or your customer base) versus a more remote warehouse which comes at a cheaper cost.
The type and quantity of materials and stock or inventory requiring storage will be forefront when evaluating a warehousing solution.
A summary of your requirements should include:
- Detail of product you will store in Indonesia
- The volume per year
- The target market (point of product distribution)
- How imports will arrive (sea or air freight)
The efficient management of inventory is critical to ensure space is not necessary to house dead inventory. This is where professional warehouse planning assistance can be invaluable; particularly for businesses that may not have analytics to support aged inventory reporting or excess stock on hand.
Government Regulations & Costs
Warehouses inspections and audits take place when obtaining appropriate permits or registering any products. There are other regulations and requirements, depending on the specific product you plan on warehousing.
Costs may include rent, manpower, electricity, security, loading in and out, internet and telephone, handling fees, storage racks, room and humidity controls, refrigerators and more. The requirements depend on the renter’s needs and the stock you plan on warehousing. Consider that the Value-Added Tax (PPN) also applies at 10% to most costs.
Emerhub offers a Warehouse Management Service tailored to our clients’ needs, from detailing your requirements, negotiating with warehouse providers, hiring manpower including security and product handlers; performing quality control and routine checks.
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