Aluminum is a metal chemical element widely used in public needs. It is strong, light, and easy to work with. Because of these properties, aluminum is commonly used in the manufacture of transportation equipment, electrical wires, and also for everyday items. So, how to export aluminum from Indonesia?
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Export and Import Aluminum in Indonesia
As a resource-rich country, Indonesia is one of the largest producers of bauxite seeds in the world. Unfortunately, Indonesia still does not have a smelter for alumina. In order to fulfill the country needs, Indonesia has to import alumina from another country. After that, they process it into aluminum. Because of these circumstances above, Indonesia prohibit the importation of raw aluminum.
Despite this, the trade minister of Indonesia is optimistic that Indonesia will become one of the largest exporters of alumina and aluminum ingot (bar) in the world by 2024-2025. This optimism came after the factory owned by PT Bintan Alumina Indonesia in Bintan, Riau Islands, started production.
Based on trend economic data, the export destination for aluminum in the category of “aluminum plate, sheet and strip with a thickness greater than 0.2 mm.” Indonesia in 2019 includes
USA with a share of 95% (110 million US$)
Korea with a share of 1.14% (1.33 million US$)
Malaysia with a share of 1.07% (1.24 million US$)
Canada – 1.06 million US$
Other Asia, nes – 732 thousand US$
Singapore – 232 thousand US$
Philippines – 216 thousand US$
New Zealand – 122 thousand US$
Thailand – 106 thousand US$
Japan – 82 thousand US$
Then Indonesia’s import partner for aluminum in the category of “aluminum plate, sheet and strip, with a thickness of more than 0.2 mm. ” that is:
China with a share of 69% (279 million US$)
Korea with a share of 8.48% (34 million US$)
Thailand with a share of 6.54% (26 million US$)
Japan with a share of 3.93% (15.7 million US$)
Saudi Arabia with a share of 3.92% (15.7 million US$)
Singapore with a share of 2.11% (8.49 million US$)
Malaysia with a share of 1.1% (4.41 million US$)
Germany with a share of 1.02% (4.11 million US$)
Other Asia, nes – 1.82 million US$
Italy – 1.62 million US$
What Do You Need to Import Aluminum From Indonesia?
If you want to import aluminum from Indonesia, it is better to know some requirements below.
1. Have a Business Registration From Your Country
Initially, you need a Business Registration From Your Country to import aluminum from Indonesia. That declares that you have a legal company in your country to do foreign trading.
2. Know the HS Code of Aluminum
3. Check Out Your Country's Regulation
Then, you also need to check the aluminum trade regulations in your country so that there are no mistakes when importing them from Indonesia.
4. Decide Which Payment Method You Want to Choose
After that, decide which payment method you want to use with your client in Indonesia, Shipping, etc. Usually, Importers most likely will choose using Letter of Credit payment method.
5. Determine The Shipping Method
Besides the points above, make sure to find trustworthy shipping agent. You can choose shipment whether by air or sea. Do not forget to also prepare the shipment document needed such as Bill of Lading.
6. Consider to Use Importer of Record (IoR) service
If you does not yet have a company in Indonesia, processing all export permits will take months. So, Using an importer/exporter of record service such as Kickrate is suitable for those of you who do not have a company and need the help of professional hands in Indonesia.
