Anyone who has exported to Indonesia might have heard of a term that strikes fear into many exporters: the 'Red Light Clearance Period.

In Indonesian customs, there are two types of clearance systems: 'Red Light Customs' and 'Green Light Customs.' The 'Red Light' system is a protective policy aimed at safeguarding local industries. If certain export goods fall under the 'Red Light Period,' customs will conduct strict inspections on those goods to protect local producers of similar products. It is not uncommon for goods to remain stuck at customs for several months during this period.

The 'Red Light Period' typically occurs from December to March of the following year. During this time, Indonesian customs collaborate with other enforcement agencies to conduct thorough inspections of imported goods. Clearance procedures require more documentation and take longer than usual. If not handled properly, this can lead to additional costs. For shipments under red-flagged licenses, a 100% inspection rate is almost guaranteed.

This year, the situation is expected to be even more severe.

Throughout the year, Indonesia has repeatedly destroyed illegally imported goods, including clothing, textiles, electronics, ceramics, and more. According to disclosures from Indonesian authorities, there is a significant discrepancy between the import data recorded by Indonesia and the exporting countries. For example, the value of imported textiles, apparel, ceramic products, electronics, cosmetics, footwear, and other textile goods was recorded as $360 million by the exporting countries but only $116 million by Indonesia.

In June, Indonesia's Ministry of Trade announced plans to impose safeguard tariffs ranging from 100% to 200% on imported products such as footwear and ceramics, as part of efforts to revive domestic industries.

In July, Indonesia officially established a special task force to combat illegal imports. The monitored goods include textiles and textile products (TPT), other textile items, electronics, footwear, apparel, ceramics, and beauty or cosmetic products. According to Indonesian authorities, these illegally imported products, which the task force targets, have caused a significant trade deficit in the country due to their widespread presence.

In October, Indonesia’s Ministry of Industry announced the implementation of mandatory Indonesian National Standards (SNI) for 16 types of industrial products, including prestressed steel wires, valves, tiles, safety footwear, and more. This measure aims to ensure product safety, health, and environmental compliance.

According to industry insiders, all Indonesian ports have now entered a 'Red Light' status. Unprecedented levels of inspections are being conducted at ports and warehouses across the country.

Recent Export Tips for Indonesia

As the largest economy and most populous country in Southeast Asia, Indonesia's market potential cannot be underestimated.

When exporting to Indonesia, aside from collecting the final payment before shipment, be mindful of the following:

01.
For different types and quantities of goods, ensure that product information is clarified before shipping. Communicate with local Indonesian customers about the latest customs policies and whether the products may encounter clearance obstacles. If needed, collaborate with a capable destination port agent.

02.
If your Indonesian customer lacks import rights or has limited qualifications, inspections are more likely (having an API import license or even a Master List does not guarantee smooth clearance). In such cases, consider using DDP operations, where a qualified import agent handles the clearance.

03.
Whether using DDP or DDU operations, it’s recommended to request 14 days of free detention time from the shipping company when booking cargo. This will help minimize or avoid demurrage charges if customs clearance takes longer than usual.

Note: All goods arriving in Indonesia must have duties paid within 30 days. At Jakarta port, goods exceeding this deadline will be moved to a simple warehouse under a supervisory agency affiliated with the national port authority. These goods can be stored for 1–3 months; if unclaimed, they will be auctioned to cover storage fees. Any remaining balance after auction will be held for three years, after which it will be transferred to Indonesia’s national treasury. Goods cannot be returned before duties are paid.

04.
Since January 2016, Indonesia has implemented stricter requirements for many products, such as LED lights, machinery (used), textiles, and more. These items require SGS pre-shipment inspection. The SGS number must be obtained and pre-shipment inspection scheduled before departure. Completing this step significantly reduces the likelihood of clearance delays at the destination port.

05.
Confirm the buyer’s import rights and qualifications in advance and clarify loading requirements domestically. Doing thorough preparation before shipment maximizes efficiency in import and export processes.

06.
Ensure that export goods match the actual packing list. If customs at the destination port discovers discrepancies between the goods, packing list, invoices, or Bill of Lading copy, the penalties can be costly. Some exporters use abbreviations or omit details, which may be acceptable in other countries but not for Indonesia. The more detailed, the better.

07.
Before shipping, work with a professional export agency to review clearance documents and conduct meticulous pre-shipment inspections. Verify the quantity and address potential issues at the origin port before shipping to minimize problems at the destination port.

08.
Lastly, pay close attention to the verification risks of FORM E in Indonesia.

For those doing business in the Indonesian market, please share and remind others to take these precautions seriously!