Indonesia is Malaysia’s second largest trading partner in Southeast Asia, and has the largest global Muslim population. With a large domestic halal economy, Indonesia offers many opportunities for Malaysian halal F&B companies. Indonesia also shares many market similarities with the Malaysian market, such as similar tastes and preferences, shared borders and multiple trade entry points.

Over the last five years, the e-commerce industry in Indonesia has grown by sixty percent. Indonesian consumers’ top online purchases includes beauty and personal care, healthcare, and food and beverages. Access to Indonesia e-commerce market varies depending on the company’s size, products and whether it has existing relationships within Indonesia. Malaysian companies can also sell directly to Indonesia through their e-commerce platforms, Blibli and Bukalapak.

The main challenge of exporting to Indonesia through e-commerce are the high costs for shipping and taxation. Malaysian companies will be charged for land transportation, courier fees, break bulk in Tanjung Priok port, import income tax, luxury tax and value-added tax. Malaysian companies will also face price competition from Indonesian companies, especially with products that are similar to local products. Besides that, Malaysian companies need to comply with Indonesian standards, such as halal, BPOM and SNI certification. There is no mutual recognition with Malaysian standards.

There are currently many well-known Malaysian brands that has successfully established in Indonesia, such as Julie’s, Mamee, Munchy’s, MyBizcuit (MBG member), Jacobs, Omypop (MBG member), Jacker, Ibumie (MBG member) and others. MATRADE has advised Malaysian companies to seek strong and reliable local partners to service and succeed in the market.

Malaysian businesses interested in exporting to Indonesia can reach out to MATRADE for assistance and enquiries.

For enquiries, please contact:

Embassy of Malaysia Trade Office (MATRADE)
Level 12, Plaza Mutiara
Mega Kuningan
Jakarta, Indonesia

T:+62-21-576 4297
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Consulate General of Malaysia Commercial Section (MATRADE)
Jalan Diponegero No.43
20152 Kota Medan
Sumatera Utara, Indonesia

T: +62 61 4531 342
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Malaysia Chambers Jakarta (MCJ)
W: www.malaysiachambersjakarta.com
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Sources:
MATRADE webinar (Expand Your Business To Indonesia)