Choosing between DDP and DAP for Indonesia imports affects who pays duties, who handles customs, and whether you need an Importer of Record. Here's how to decide.
When shipping goods to Indonesia, the Incoterm you choose determines who is responsible for customs clearance, duties, and taxes. The two most relevant terms for Indonesia imports are DDP (Delivered Duty Paid) and DAP (Delivered at Place).
Under DAP, the seller delivers the goods to a named place of destination (e.g., a warehouse in Jakarta). The seller bears all costs and risks up to delivery except:
The buyer is responsible for customs clearance and all import costs under DAP.
Under DDP, the seller takes on the maximum obligation. The seller delivers the goods to the buyer's location fully cleared for import, with all duties and taxes paid.
The seller handles everything: transport, insurance, customs clearance, duties, taxes, and permits.
| Aspect | DAP | DDP |
|---|---|---|
| Transport to destination | Seller | Seller |
| Export customs | Seller | Seller |
| Import customs clearance | Buyer | Seller |
| Import duties & taxes | Buyer | Seller |
| Import permits | Buyer | Seller |
| IOR needed by | Buyer | Seller |
| Risk transfer | At destination, before customs | At destination, after customs |
Here's where it gets complicated: Indonesia requires a locally licensed entity (with API) to clear imports. Neither the foreign seller nor the foreign buyer can act as the importer.
The buyer in Indonesia needs to either:
The seller needs to arrange:
Choose DAP when:
Choose DDP when:
In both cases, if neither party has a local entity in Indonesia, you need an Importer of Record like Kickrate.
Whether you're shipping DAP or DDP, Kickrate can act as the IOR:
Get a landed cost estimate for your specific shipment, or calculate duties using our import duty calculator.
