WHY IOR IS NEEDED IN INDONESIA?
Indonesia is experiencing significant technological growth, driven by initiatives like "Making Indonesia 4.0," which supports digital transformation across industries. Leading companies, such as Schneider Electric and Petrosea, have integrated advanced technologies in their Indonesian operations, earning global recognition for their progress toward smart manufacturing.
Major cloud providers including Google, Amazon, and Alibaba have invested in local data centers, enhancing digital infrastructure to support various sectors from e-commerce to telecommunications. Additionally, the SATRIA-1 satellite, a $545 million project by Thales Alenia Space and SpaceX, is enhancing broadband connectivity in remote regions, providing vital internet access to schools, healthcare facilities, and government offices. These developments showcase Indonesia’s commitment to technological advancement and connectivity.
Challenges Faced by Foreign Developers in Managing Indonesia's Inbound and Outbound Processes:
Alongside Indonesia's technology development and growing foreign investment interest, several challenges have emerged, including:
- Complex Regulatory and Compliance Landscape: Foreign investors face complex and varying regulations across sectors and regions, requiring careful navigation.
- Import/Export Compliance: Meeting Indonesia’s specific import and export regulations can be challenging and may involve additional procedural steps. You might check how to apply LS as an example for a complicated process.
- Language and Process Barriers: Differences in paperwork, logistics processes, and language create challenges in handling local documentation and ensuring smooth operations.
- Geographical Challenges: Indonesia’s vast archipelago, with over 17,000 islands, creates logistical difficulties for foreign investors, as varying infrastructure levels complicate transportation and communication.
How to Import in Indonesia without setting up a legal entity?
You may need a local partner in Indonesia to manage your shipments effectively. Instead of investing time and resources into establishing your own entity, an Importer of Record (IOR) partner can streamline the process. An IOR partner will help you navigate complex paperwork and logistics, as well as manage the intricate import licensing requirements for sensitive goods.
Our local team at KOR-PLUS, born and raised in Indonesia, understands the language and local regulations. With years of experience in handling cross-border logistics, we have not only the necessary expertise but also established relationships with customs authorities. KOR-PLUS is here to support you by:
- Serving as your IOR (Importer of Record)
- Ensuring customs processing and delivery compliance with local regulations
- Monitoring and managing your goods within the country
This allows you to focus on growing your business while we handle the logistics and compliance burdens. Let’s grow your business together!