How to Import Furniture to Indonesia

Did you know that Indonesia has strict regulations on furniture imports? The goal is to protect the local industry and not overly disadvantage domestic manufacturers against imports. Furthermore, these regulations aim to ensure that sustainability standards are met, especially for forestry products to ensure that imported furniture complies with environmental requirements in Indonesia. 

In this article, we will outline key regulations and considerations for importing furniture to Indonesia.

Key Regulations and Requirements for Importing Furniture to Indonesia

In Indonesia, only licensed local companies can import furniture. Foreign companies cannot directly import furniture into Indonesia. Instead, they must appoint a local consignee with the necessary licenses to handle the import process. The consignee must also meet the following requirements to import furniture to Indonesia: 

• General Import License (API-U) – issued exclusively to Indonesian companies by the Ministry of Trade (MoT) to legally import finished goods for distribution or commerce in Indonesia. 
• Business Classification (KBLI 46491) – Standard Industrial Classification for wholesale businesses, especially in trading household equipment and supplies. This ensures that the consignee is registered for the appropriate business activity in Indonesia. 
• Import Approval (PI Kehutanan) – ensures that imported forestry products, such as wooden furniture, comply with environmental regulations and are sustainably sourced. 

Whether you’re a foreign furniture dealer or you want custom-made pieces from overseas for your Indonesian company, Emerhub can simplify the process via our Importer of Record service. If, alternatively, you want to set up your own logistics network for your local company in Indonesia, our local experts can also help secure your import license.

Shipping and Logistics for importing furniture

Shipping and logistics play a crucial role when importing furniture to Indonesia. Factors like your furniture’s size and weight, urgency, and your allocated budget will typically affect shipping methods, container options, and packaging. 

When shipping furniture to Indonesia from overseas, there are two primary shipping methods: 

Sea Freight	Air Freight
– The most common method for shipping furniture to Indonesia due to its cost-effective nature and ability to ship in large amounts.  – It typically takes 3-6 weeks for furniture to arrive depending on the destination port.  – You can choose between a Full Container Load (FCL) and Less than Container Load (LCL) for smaller shipments.	– Air freight is significantly faster than sea freight, typically from a few days to a week depending on the route and airline.  – Considered more expensive, often costing 2x to 5x more than sea freight.  – Limited capacity and is often used for small, high-value items or urgent shipments.

When shipping furniture to Indonesia, you also need to consider proper packaging and protection of your goods. Here are some best practices for packaging your furniture for shipping:

• Proper Packaging – Use protective materials like bubble wrap or foam to safeguard fragile parts and edges.
• Disassembly – Disassemble furniture to reduce size and weight, making it easier to pack and transport.
• Organizing Small Parts – Store small components such as screws and knobs in labeled plastic containers to prevent loss or confusion.
• Corner and Hinge Protection – Add extra padding to corners and hinges to absorb shocks during transit.
• Labeling and Documentation – Ensure all packages are clearly labeled with contents and any relevant handling instructions.
• Customs Compliance – Verify that all packaging materials comply with Indonesian customs regulations to avoid delays or penalties.

Understanding Import Duties and Taxes for Furniture

Upon arrival in Indonesia, your package will be subject to import tax. Import duties are calculated using the CIF (cost, insurance, and freight) value. Here’s an example of Import duty calculations when importing furniture to Indonesia: 

Cost of Goods	USD 10,000
Insurance	USD 200
Freight Charges	USD 1,500
CIF Total	USD 11,700

Import duties for furniture can range from 0% to 20% depending on the type of furniture. Using this example, we can calculate import duty (assuming 10% duty rate):

CIF	USD 11,700
Import Duty	10%
Import Duty	USD 1,170

A standard 10% VAT is also applied to the CIF value plus import duty. Here’s an example to illustrate how it is calculated: 

VAT rate	10%
CIF Total + Import Duty	(USD 11,700 + USD 1,170)
VAT Total	USD 1,287

If your imported furniture has a  USD 11,700 CIF, you would be paying a total of USD 2,457 in import duties and taxes. There is also an additional Luxury Goods Sales Tax (PPnBM) ranging from 10% to 75% if you are importing luxury furniture. 

Customs Clearance and Compliance

Customs clearance ensures compliance with all relevant regulations and facilitates smooth entry of goods into the country. Without proper customs clearance, shipments can be delayed or even seized. The process involves submitting the following documents to the Indonesian Directorate General of Customs and Excise: 

• Pemberitahuan Impor Barang (PIB): This is the primary document required for customs clearance in Indonesia. It is prepared and submitted by the Importer of Record (IOR).
• Commercial Invoice: Details the value and description of the goods.
• Packing List: Lists all items in the shipment, including quantities and weights.
• Bill of Lading/Air Waybill: Serves as a contract between the shipper and the carrier.
• Certificate of Origin: Proves where the furniture was manufactured.
• Insurance Policy: Proof of insurance coverage for the shipment.
• Receipt of Payment of Import Duty and Taxes: Evidence that all duties and taxes have been paid.

Emerhub’s Importer of Record (IOR) service simplifies the process of importing furniture to Indonesia. Emerhub acts as your consignee, allowing you to import furniture virtually immediately without needing to secure an import license. We provide our own licensed logistics network, as well as offer warehousing solutions for your goods in Indonesia.

Want to start importing furniture to Indonesia? Fill out the form below and our local experts will get in touch!