Foreign Companies can Rent Warehouses in Indonesia: Your Guide

When your business experiences growth in Indonesia, you may want to expand your operation. At this time, you will probably require additional spaces to manufacture or store your inventory and items. Then, renting a warehouse in Indonesia may be your answer. Warehouses are industrial properties and generally used for products distribution, manufacturing, storage, or fulfillment.

While there are many warehouses available in Indonesia, not all warehouses will fit your expanding business operation. Therefore, when scouting for a warehouse in Indonesia, you need to look into the following critical factors to make sure that the warehouse you choose is able to meet your business performance and fulfill customer’s demand.

Warehouse Location in Indonesia

Location is probably the most important element when it comes to choosing a warehouse to keep your inventory.

You will need a location that is both convenient for your customers and suppliers, as well as cost-effective for your business.

Choosing a great warehouse location means you can significantly save shipping costs and boost customer experience with shipping time.

The prices of warehouse in Jakarta are in close relationship with property prices. So when the property prices increase, the warehouse prices will increase as well.

The popular areas of warehouses in Jakarta that we are going to list below are close to industrial areas and good for containers. They are in close proximity to business centres in Central and South Jakarta:

• East Jakarta: Cililitan, Pulo Gadung, Jalan Raya Bekasi Barat, and areas near Jagorawi toll road
• North Jakarta: areas close to Tanjung Priok Jakarta International Seaport including Marunda, Tanjung Priok

Other warehouse locations in Indonesia with greater cost savings and better road transport solutions are Cengkareng, Tangerang, Depok, Bekasi Bogor, and Cikarang.

West Jakarta is not an ideal location of warehouses for businesses compared with East and North Jakarta. This region is densely populated and the container’s accessibility is inadequate.

Requirements for Storage

When you want to determine a warehouse solution for your operation expansion, knowing the storage requirements especially the quantity/volume of inventory is vital.

The details of your inventory should include the following to understand your storage requirements:

• Volume per year
• Product details for storage in warehouse in Indonesia
• Ways of import (via air or sea freight)
• Target market for point of product distribution

You have to ensure that dead stock is not part of your warehouse inventory so that you can have a more efficient warehouse management. If effective inventory and warehouse management are something your business is struggling with, you may seek help from a warehouse planning professional.

Government Regulations

In accordance with Indonesia Law, it is compulsory for businesses to have a warehouse in Indonesia if they want to register their products such as food and beverages, and medical devices.

Prior to obtaining the permits for the product registrations, the authority will conduct warehouse audits and inspections. There are several requirements and regulations to comply with as well depending on the type of the products in the warehouse.

Costs

Costs that you have to consider for warehousing include rent, 10% of value-added tax, electricity, manpower, security, telephone and internet, storage supplies, handling fees, refrigerators, and many others – depending on your warehousing plan as well.

Registering Your Warehouse in Indonesia

Business owners are required to register their warehouses with the relevant mayors, regents or governor. All such registrations are to be carried out online.

Warehouse owners with an Industrial Business License (Izin Usaha Industri – IUI) are allowed to use this license as a Warehouse Registration Certificate (Tanda Daftar Gudang – TDG). This permission must follow the provisions under their relevant laws and regulations.

Failure in registering your warehouse in Indonesia may result in administrative sanctions, such as temporary closure and/or fines amounting to IDR 2 billion maximum.

How Cekindo can Assist

The team at Cekindo intends to add value to your warehouse search in Indonesia. We have served hundreds of clients over the years and delivered tremendous value to investors or business owners like you.

Through identifying strategic locations and below-market value opportunities for your warehouses, Cekindo can assist you for warehouse requirements in all areas in Indonesia. We are here to support your business growth with scalable and cost-efficient warehouse planning and renting solutions.

Ready to discuss your business warehouse needs? Whether you are a just a startup or multinational company, our experts at Cekindo can help you plan and execute. Fill in the form below.