Recently I attended the excellent and informative AAAA presentation on “Opportunities in the aftermarket in Indonesia” as presented Ben Barlett. As Ben explained, the automotive component sector holds one of the fastest growing and most promising areas of growth potential for Indonesia. There are certainly many opportunities for automotive aftermarket market - replacement parts, Australian manufactured components, and accessories.
Indonesia, South East Asia’s largest economy has significantly lifted its global economic status and withstood the global financial crisis better than many analysts had predicted.
ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) came into force for Indonesia on 10 January 2012. This opens many opportunities for Australian exporters to do business with Indonesian importers. For the Indonesian importer, there will be tariff-free treatment on almost all types of automotive parts and equipment by 2013 and all goods by 2020. Value Added Tax (VAT) is applied, on most imports at 10 per cent.
In saying this, the Indonesian customs regulations are complex, but duty saving opportunities may be realised by exporters, by them gaining an understanding of Indonesian Customs laws and tariffs.
For these who are considering exporting or are about make exports to Indonesia we at Curlett, Cannon, & Galbell can help you in tackling this market and its numerous opportunities by facilitating your freight forwarding and Customs compliance needs.
For further information contact Tony Bell at Curlett Cannon & Galbell on 9330 2122 or email him at [email protected]
Background on ASEAN (Association of Southeast Asian Nations) Free Trade agreements:
ASEAN was first formed in 1967 with six member countries: Brunei, Indonesia, Malaysia, Philippines, Singapore, and Thailand and was subsequently joined by Cambodia, Laos, Myanmar, and Vietnam.
ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) were signed on:-
• Thailand - February 2009
• Brunei, Myanmar (Burma), Malaysia, Philippines, Singapore, Thailand and Vietnam - various dates 2010
• Laos and Cambodia, - January 2011
• Indonesia - January 2012
