
You are surely familiar with the term “export.” What is the first thing that comes to mind when you hear the word “export”? Export is often associated with a difficult marketing activity in business. If business people are asked about exporting, most will generally answer that it is expensive, that dealing with customs is difficult, and that exports must be in large quantities or one container.
In Minister of Trade Regulation No. 13/2012 concerning General Provisions on Export, it is explained that export is the activity of removing goods from a customs area. Therefore, even if the products you send are only on a small scale (less than 50 kg) and as long as they are part of a transaction (not free samples or goods sent for humanitarian purposes, for example), it is legally and regulationally valid that you have carried out an export activity.
Many also assume that MSME-scale businesses are synonymous with small businesses and are not yet suitable for export. In fact, MSMEs, which are often viewed as small, play a major role in the Indonesian economy. However, in order to export, MSMEs need to have legal status and a business entity.
Four tips for beginners starting to export:
1. Prepare business legality documents for export
There are four legal document requirements for exporters, namely:
- SIUP (Trade License) from the District/City One-Stop Integrated Investment Service (DPMPTSP)
- Company Registration Certificate (TDP) from the One-Stop Integrated Investment Service (DPMPTSP) of the regency/city
- Taxpayer Identification Number (NPWP) from the Tax Office
- NIK (Customs Identification Number) from the Directorate General of Customs and Excise
Except for NPWP, some regions have implemented an online system for the three documents above, provided that the required files and requirements are complete. A tip to simplify the export process is to ensure that all information is consistent, including the company name, company address, etc., because sometimes the process takes a long time due to inconsistencies between documents.
If you do not have an NIK, you do not need to worry because you can use an undername service, which is borrowing the name of another company that already has an NIK. Both exporters who already have their own NIK and those who use an undername will not deal directly with customs. This is because customs matters are the responsibility of the forwarder, which is the service that exporters use when sending goods by sea or air.
2. Prepare export documents
Main export documents
- Invoice (issued by the exporter)
- Packing list (issued by the exporter)
- Bill of lading (issued by the shipping company for sea freight / airway bill for air freight
Additional documents
- Certificate of origin (District/City Trade and Industry Office)
- Certificate of analysis (laboratory)
- Certificate of Phytosanitary (quarantine agency for plant products)
Other additional documents as requested by the buyer
Documents required prior to export
- Shipping Instructions from the exporter to the shipping line
- PEB (Notification of Export Goods) from the exporter
The difficulty or ease of exporting depends on the requirements that need to be prepared, such as legality and export documents.
The number of export documents required depends on the product or commodity to be exported, the procedures in the destination country, and the buyer’s requests, which are certainly related to their company.
3. Utilize export facilities provided by the government and various other agencies
You can find information on the website http://djpen.kemendag.go.id/ of the Directorate General of Export Development (DJPEN) – Ministry of Trade, which has trade representatives, namely the Indonesia Trade Promotion Center (ITPC) and Trade Attaché (Atdag), spread across five continents. Through these channels, you can request or view inquiries from foreign companies regarding a product, market briefs, and market intelligence for a product.
Still within the same ministry, through the Directorate General of International Trade Negotiations (Ditjen PPI), there is an institution called the FTA Center (Free Trade Agreement) which has three experts in export procedures, promotion and marketing, and Trade Agreement Implementation. The FTA Center is currently based in five cities (Medan, Jakarta, Bandung, Surabaya, and Makassar). MSMEs from Western, Central, and Eastern Indonesia can choose the center closest to their location and consult for free by making an appointment in advance to schedule a consultation time.
Additionally, the Ministry of Foreign Affairs also has the Directorate of the Americas and Europe, as well as Asia and Africa, which are connected to Indonesian embassies in various countries (kemlu.go.id).
Often, various facilities for international trade exhibitions, such as booths and business matching, are provided for entrepreneurs, including SMEs.
4. Utilizing social media to get responses
In general, many people complain about having to search for information through the government, whether at the city, provincial, or ministerial level, because the information available is scattered sporadically. Therefore, in the initial stage of obtaining information, we can look for other alternatives by utilizing networks such as LinkedIn, Instagram, Twitter, and Facebook to get responses regarding the information we need. Through Direct Messages on each of these social media platforms, you can connect directly with the relevant institution or individual by entering the keyword of the name you are searching for.
After receiving a response from social media, don’t forget to confirm the next steps, such as getting the answers you need, getting the time and contact person if you need to make a visit, and so on. Of course, there are no guarantees; some responses are quick, while others are slow. However, it all comes back to how we build communication, introduce ourselves, and explain our intentions and goals.
