Indonesia

The goal of Indonesia, the country of South-East Asia Region that attracts attention with its economic development, is to be among the top 10 countries with the largest economy in the world in the next 10 years.

The goal of Indonesia, the country of South-East Asia Region that attracts attention with its economic development, is to be among the top 10 countries with the largest economy in the world in the next 10 years.

Association of South-East Asian Nations, Asia-Pacific Economic Cooperation, Non-Aligned Movement...

Association of South-East Asian Nations, Asia-Pacific Economic Cooperation, Non-Aligned Movement...

In Indonesia, which is defined as a unitary state with a republican regime according to its constitution, Panchasila has been accepted as the constitutional fundamental principle of the state.

In Indonesia, which is defined as a unitary state with a republican regime according to its constitution, Panchasila has been accepted as the constitutional fundamental principle of the state.

Few companies with Indonesian capital operate in Turkey, and over 30 Turkish capital companies operate in Indonesia.

Few companies with Indonesian capital operate in Turkey, and over 30 Turkish capital companies operate in Indonesia.

32% of its workforce is employed within the agricultural sector. Indonesia is the 3rd largest rice producer in the world. In addition, a significant amount of palm oil is produced as well.

32% of its workforce is employed within the agricultural sector. Indonesia is the 3rd largest rice producer in the world. In addition, a significant amount of palm oil is produced as well.

In Indonesia, significant progress have been made in terms of the protection of patents, trademark, copyright, trade secrets, industrial designs in recent years, and many world companies and brands have entered the country market to operate in the Indonesian market.

In Indonesia, significant progress have been made in terms of the protection of patents, trademark, copyright, trade secrets, industrial designs in recent years, and many world companies and brands have entered the country market to operate in the Indonesian market.

Indonesia, which became a member of the World Trade Organization in 1995, imposes different customs duties on products originating from countries, which signed a free trade agreement or preferential trade agreement with Indonesia, especially ASEAN countries, in importation.

Indonesia, which became a member of the World Trade Organization in 1995, imposes different customs duties on products originating from countries, which signed a free trade agreement or preferential trade agreement with Indonesia, especially ASEAN countries, in importation.

Seasonal conditions in Indonesia are quite different from Turkey. The weather conditions, which are 26-32 oC on average throughout the four seasons, are divided into two as the rainy season and the summer season.

Seasonal conditions in Indonesia are quite different from Turkey. The weather conditions, which are 26-32 oC on average throughout the four seasons, are divided into two as the rainy season and the summer season.

Turkey has close and multifaceted relations with Indonesia. Due to historical ties, there have been always friendly relations between Turkey and Indonesia.

Turkey has close and multifaceted relations with Indonesia. Due to historical ties, there have been always friendly relations between Turkey and Indonesia.

Turkey recognized the Republic of Indonesia on 29 December 1949 and diplomatic relations were established in 1950. Turkish Embassy to Indonesia commenced its activities on 10 April 1957

Turkey recognized the Republic of Indonesia on 29 December 1949 and diplomatic relations were established in 1950. Turkish Embassy to Indonesia commenced its activities on 10 April 1957

Indonesia is an important partner for our country in developing bilateral political and commercial relations with the Asia-Pacific region. Mutual visits at the Presidency level took place in 2010 and 2011 accelerated our bilateral relations.

Indonesia is an important partner for our country in developing bilateral political and commercial relations with the Asia-Pacific region. Mutual visits at the Presidency level took place in 2010 and 2011 accelerated our bilateral relations.

After the EU-ASEAN Free Trade Agreement (STA) negotiations started on 4 May 2007, an attempt was made on June 12, 2007 to initiate STA negotiations between our country and ASEAN. On July 28, 2008, meetings were held with ASEAN Secretary General and Indonesian authorities in an exploratory manner, and after these conversations,

After the EU-ASEAN Free Trade Agreement (STA) negotiations started on 4 May 2007, an attempt was made on June 12, 2007 to initiate STA negotiations between our country and ASEAN. On July 28, 2008, meetings were held with ASEAN Secretary General and Indonesian authorities in an exploratory manner, and after these conversations,

Besides agricultural products such as wheat flour, olive oil, olives, tomato paste, dried fruits and nuts, tobacco, fresh fruits and vegetables, Indonesia is also a potential market for products such as iron and steel products as industrial products, milling machines, food processing, packaging machinery and equipment, textile machinery, woodworking machinery, building materials, marble, carpet, prayer rug and defense industry products.

Besides agricultural products such as wheat flour, olive oil, olives, tomato paste, dried fruits and nuts, tobacco, fresh fruits and vegetables, Indonesia is also a potential market for products such as iron and steel products as industrial products, milling machines, food processing, packaging machinery and equipment, textile machinery, woodworking machinery, building materials, marble, carpet, prayer rug and defense industry products.

The Cultural Cooperation Agreement dated 1973 forms the basis of our bilateral cultural and educational relations.

The Cultural Cooperation Agreement dated 1973 forms the basis of our bilateral cultural and educational relations.

Country Profile

FLIGHTS

Direct flights are carried out to Indonesia’s capital, Jakarta and Bali, from Turkey by Turkish Airlines. It is possible to go to Jakarta Soekarno-Hatta International Airport from Istanbul 7 days a week with a flight of 11 hours and 40 minutes. You can also reach Bali Denpasar (Ngurah Rai Airport) from Istanbul with Turkish Airlines.

LOCAL TIME

Western Indonesia (all provinces in Sumatra and Java, and provinces in Western and Central Kalimantan) are seven hours ahead of GMT (Greenwich Mean Time). Central Indonesia (provinces in East and South Kalimantan, all provinces in Sulawesi, Bali, West and East Nusantenggara and East Timor) are eight hours ahead of GMT. Eastern Indonesia, covering ‘Maluku and Irian Jaya provinces, is 9 hours ahead of GMT

PHONE CODES

Indonesia: 62, Bandung: 22, Jakarta: 21, Medan: 61, Surabaya: 31

INTRODUCTION

The goal of Indonesia, the country of South-East Asia Region that attracts attention with its economic development, is to be among the top 10 countries with the largest economy in the world in the next 10 years.

Indonesia is the 4th most populous country in the world and the most populous Muslim country in the world, has a population of approximately 300 million.

Indonesia is the 4th most populous country in the world and the most populous Muslim country in the world, has a population of approximately 300 million.

In Indonesia, which is the first economy of South-East Asia and the 16th economy in the world, per capita national income is around 4 thousand 182 USD per year (approximately). Mixed Economy Model is applied in the country.

In Indonesia, which is the first economy of South-East Asia and the 16th economy in the world, per capita national income is around 4 thousand 182 USD per year (approximately). Mixed Economy Model is applied in the country.

Its total exports in 2019 were $167 billion. Its total imports in the same year amounted to 170 billion dollars. As of May 2020, the inflation rate of the country increased to 2.72%.

Its total exports in 2019 were $167 billion. Its total imports in the same year amounted to 170 billion dollars. As of May 2020, the inflation rate of the country increased to 2.72%.

Indonesia, one of the founding members of the Association of South-East Asian Nations (ASEAN), is the only G-20 member country in ASEAN.

Indonesia, one of the founding members of the Association of South-East Asian Nations (ASEAN), is the only G-20 member country in ASEAN.

Indonesia is a unitary republic. Presidential elections in the country were held for the first time in 2004 with a direct public vote. The President and Vice President are elected by a referendum for a 5-year term.

Indonesia is a unitary republic. Presidential elections in the country were held for the first time in 2004 with a direct public vote. The President and Vice President are elected by a referendum for a 5-year term.

The People’s Consultative Assembly consists of two chambers: the 560-member House of People’s Representatives (DPR) and the 136-member Regional Representatives’ Council (DPD). The People’s Consultative Assembly meets at least every 5 years and retains the powers to amend the constitution, appoint the president and vice president, and also dismiss them based on the constitutional provisions.

The People’s Consultative Assembly consists of two chambers: the 560-member House of People’s Representatives (DPR) and the 136-member Regional Representatives’ Council (DPD). The People’s Consultative Assembly meets at least every 5 years and retains the powers to amend the constitution, appoint the president and vice president, and also dismiss them based on the constitutional provisions.

Turkish citizens holding an ordinary passport are exempt from visa for up to 30 days of residence. Turkish citizens holding a diplomatic, special and service/official passport are exempt from visa for up to 30 days of residence.

Turkish citizens holding an ordinary passport are exempt from visa for up to 30 days of residence. Turkish citizens holding a diplomatic, special and service/official passport are exempt from visa for up to 30 days of residence.

Free Trade Agreement negotiations between Turkey and Indonesia are ongoing

Free Trade Agreement negotiations between Turkey and Indonesia are ongoing

Political Outlook of Indonesia

In Indonesia, which is defined as a unitary republic according to its Constitution, “Pancasila” (5 principles) is accepted as the constitutional basic principle of the state. Accordingly, the Republic of Indonesia is based on the principles of Belief in the Almighty God, A just and civilized humanity, The unity of Indonesia, Democracy, led by collective wisdom in representation, Social justice for all the peoples of Indonesia.

Presidential elections in the country were held for the first time in 2004 with a direct public vote. The President and Vice President are elected by a referendum for a 5-year term.

The People’s Consultative Assembly (MPR) consists of two chambers: the 560-member House of People’s Representatives (DPR) and the 136-member Regional Representatives’ Council (DPD). The People’s Consultative Assembly meets at least every 5 years and have the powers to amend the Constitution, appoint the President and Vice President, and also dismiss them based on the constitutional provisions. DPR, whose members are elected by a general election, is the main legislature. Enactment of a draft law requires joint approval of DPR members and the President of the State. DPD, which is established by local elections in 34 provinces of Indonesia, can offer legislative proposals to DPR in the areas which concerns regional autonomy such as central – local government relations, formation of regions and management of natural resources.

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Indonesia, one of the founding members of the Association of South-East Asian Nations (ASEAN), is the only G-20 member country in ASEAN. Indonesia, which has the world’s 16th largest economy, is also the most populous Muslim-majority country and occupies a strategic location between the Indian and the Pacific Oceans.

Major Political Parties

  • Great Indonesia Coalition (Koalisi Indonesia Hebat, KIH)
  • Indonesian Democratic Party of Struggle (PDI-P), Partai Golongan Karya (Golkar),
  • National Awakening Party (PKB),
  • National Democratic Party (NasDem),
  • People’s Conscience Party (Hanura),
  • National Mandate Party (PAN),
  • United Development Party (PPP)
  • Red White Coalition (Koalisi Indonesia Merah Putih, KMP)
  • Great Indonesian Movement Party (Gerindra),
  • Prosperous Justice Party (PKS)
  • Democratic Party (PD)

Turkiye Indonesia Relations

Turkey has close and multifaceted relations with Indonesia. Due to historical ties, there have been always friendly relations between Turkey and Indonesia. At the 16th century, the Sultanate of Aceh had asked the Ottoman Empire’s assistance against Portuguese aggression. Ottoman support to Aceh back then marks the beginning of official relations between two countries. The increase of mutual top-tier visits since 2004 has accelerated the relations. As a result of the joint declaration “Turkey and Indonesia: Towards an Enhanced Partnership in a New World Setting” signed in Jakarta in April 2011, our bilateral relations have been increased to a strategic partnership level. Following the Indian Ocean tsunami disaster, the then-Prime Minister Mr. President visited the disaster-hit Banda Aceh region of Indonesia on 6-7 February 2005. The benevolence of our people due to the tsunami disaster has further strengthened the existing ties between the people of the two countries.

Mr. President Erdoğan made an official visit to Indonesia between 30 July-1 August 2015. President Erdoğan attended the G20 Leaders Summit held in Bali, Indonesia in 2022.

President Recep Tayyip Erdoğan welcomed the elected President and Minister of Defense of the Republic of Indonesia, Prabowo Subianto, in 2024, with an official ceremony at the Presidential Complex.

Minister of National Defense Yaşar Güler also welcomed the Indonesian President and Minister of Defense Subianto, who are on an official visit to Turkey, with an official ceremony held at the Ministry of National Defense. The military band played the national anthems of the two countries at the ceremony. The visiting President saluted the guard of honor. After taking photos in front of the ministry, meetings were held under the presidency of Güler and Subianto. Minister of Foreign Affairs Hakan Fidan also hosted Subianto in Ankara.

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Turkey and Indonesia closely cooperate in a number of international organizations and fora, like the UN, OIC, G-20, D-8, and MIKTA.

Indonesia is one of the founding members of the Association of Southeast Asian Nations (ASEAN). Since July 2017 Turkey is a Sectoral Dialogue Partner of ASEAN, and since 2010 the Turkish Embassy in Jakarta has been accredited to ASEAN.

Indonesia is the largest economy in South-East Asia, and projected to become one of the top 10 global economies by 2030. Indonesia’s dynamic population, growing middle-class and strong economic potential serve as a firm basis for further developing our bilateral trade relations.

Approximately 2500 Indonesian citizens reside in Turkey, while some 450 Turkish citizens have their permanent residency in Indonesia. Turkish government has hitherto allocated approximately 1000 higher education scholarships to Indonesian citizens since 1992. In the 2016-2024 academic year, Turkey provided Approximately 200 scholarships to Indonesian students within the scope of “Turkey Scholarships”.

DIPLOMATIC RELATIONS

Turkey recognized the Republic of Indonesia on 29 December 1949 and diplomatic relations were established in 1950.
Turkish Embassy to Indonesia commenced its activities on 10 April 1957.
Its field of activity is all Indonesia and East Timor, where it has been accredited since 2003.
The Office of the Commercial Counsellor was opened in April 2007.
Our Honorary Consulate in Medan has been serving since May 1996.
Studies are underway to open our Honorary Consulates in other important regions of Indonesia.

POLITICAL RELATIONS

Indonesia is an important partner for our country in developing bilateral political and commercial relations with the Asia-Pacific region.

As a result of the joint declaration “Turkey and Indonesia: Towards an Enhanced Partnership in a New World Setting” signed in Jakarta in April 2011, our bilateral relations have been increased to a strategic partnership level.

Mutual visits at the Presidency level took place in 2024 accelerated our bilateral relations.

Due to historical ties, there have been always friendly relations between Turkey and Indonesia. Despite their geographical distance, Indonesia and Turkey have established close relations in the fields of economy, politics, culture and education.

In order to develop cooperation between the parliaments of the two countries, Turkey-Indonesia Inter-Parliamentary Friendship Group was established within the Turkish Parliament on 15 June 2000 and Indonesia-Turkey Bilateral Cooperation Group was established on 26 June 2000 under the House of People’s Representatives of Indonesia. The parliaments of the two countries continue to cooperate within the framework of the Inter-Parliamentary Union (IPU) and the “Asian Parliamentary Assembly (APA)”.

RELATIONS IN EDUCATION, CULTURE AND TOURISM

The Cultural Cooperation Agreement dated 1973 forms the basis of our bilateral cultural and educational relations.

Under the Turkey Scholarship programs, dozens of Indonesian students are granted undergraduate and doctoral scholarships each year.

Within the scope of the foreign student scholarship program called “DARMASISWA” in Indonesia, scholarships are provided to students from nearly 50 countries, including Turkey as well, to study Indonesian language, art, history and music.

In recent years, intensive cultural events and publications that have been carried out in Indonesia for the promotion of Turkey have made the country quite visible to the Indonesian public.

In addition, Turkish TV series, the visibility and popularity of which are increasing day by day in Indonesian TV channels, play an important role in the promotion of our country.

Touristic relations are also rapidly developing between the two countries.

Turkish Airlines flights to Jakarta and Bali have an important role in the development of our bilateral touristic relations.

Approximately 400 Turkish citizens live in Indonesia. These Turkish citizens living there are generally composed of business people, university students studying in Indonesia and people who settled in Indonesia by marrying Indonesian citizens.

Approximately 2,700 Indonesians live in Turkey.

In 2007, sister city relationship has been established between İstanbul and Jakarta.

Sister cities are Izmir-Surabaya, Istanbul-Jakarta, Istanbul/Pendik-Aceh/Sigli Town.

Membership of Indonesia to Major International Organisation

Association of South-East Asian Nations (ASEAN)

Asia-Pacific Economic Cooperation (APEC)

Non-Aligned Movement

Asian Development Bank

Conference on Cooperation and Confidence Building Measures in Asia (CICA)

Eight Developing Countries

East Asia Summit

G-20

International Atomic Energy Agency (IAEA)

World Bank (WB)

Asian Infrastructure Investment Bank (AIIB)

International Civil Aviation Organization (ICAO)

International Development

World Trade Organization

World Meteorological Organization

World Intellectual Property Organization (WIPO)

World Health Organization

World Customs Organization

Universal Postal Union

United Nations World Tourism Organization (UNWTO)

United Nations Mission in Liberia

United Nation Interim Security Force for Abyei

United Nations Interim Force In Lebanon

United Nations Stabilization Mission in Haiti (MINUSTAH)

United Nations Mission for the Referendum in Western Sahara (MINURSO)

United Nations Industrial Development Organization

UNESCO

United Nations Conference on Trade and Development (UNCTAD)

UN African Union Darfur Joint Peace Force

United Nations Organization Stabilization Mission in the DR Congo

Pacific Islands Forum (PIF) (Dialogue Partner)

Organization for the Prohibition of Chemical Weapons (OPCW)

Organization of Islamic Cooperation

OECD (Partner)

Multilateral Investment Guarantee

International Telecommunication Union

International Standards Organization (ISO)

International Labor Organization (ILO)

International Organization for Migration

Economy of Indonesia

Few companies with Indonesian capital operate in Turkey, and very few Turkish capital companies operate in Indonesia.

Major Trading Partners:

China, Japan, Singapore, USA, South Korea, India, Malaysia,

Main Export Items:

Coal, Palm oil, Liquefied Natural Gas / Natural Gas, Natural Rubber, Gold Ore, Textile Products, Shoes, Pulp and Paper

Main Import Items:

Petroleum Oils, Components and Parts of Telephones, Wheat, Gold Ore, Soybeans, Sugar, Butane, Propane.

The Indonesian administration has announced a total of 16 “Economic Revitalization Packages” In order to improve the economic outlook of Indonesia, with the aim to eliminate legal uncertainties and attract foreign direct investment, primarily for infrastructure.

Its economy is largely based on exports of oil, natural gas and raw materials. That being said, the livelihood of the vast majority of the people of Indonesia is agriculture, livestock and fisheries and service sectors.

Indonesia is the world’s largest coconut producer, second largest palm oil producer, third largest cocoa, fourth largest coffee, and fifth largest tobacco and tea producer. Rubber and spice production is also significantly high in the country.

Forestry is an important source of foreign currency for Indonesia. It is the richest country of South-East Asia in terms of forest. Indonesia’s mineral resources are also very rich. It is one of the biggest tin producers of the world.

Bauxite, copper, nickel, gold and silver are other important minerals extracted. There has also been a growth in the operation of coal mines in recent years. It is the biggest coal exporter of the world.

Textile and garment industry has an important place in exports of the country.

32% of its workforce is employed within the agricultural sector. It has more than 7.7 million hectares of unprocessed soil available. However, there is low efficiency.

13% of its workforce is employed in the manufacturing sector. Foreign investors have built several billion dollar oil refineries and a large steel mill in recent years.

Mining production is expected to develop in the long run. 20% of world nickel production and 10% of aluminum production are being carried out in Indonesia.

Key Economic Indicators

 2005201020152016201720182019 >
Development of GDP (Billion $)311755861932101510221112
Development of GDP Per Capita (Dollars)1404317833683606388538714164
Current Balance (Million Dollars)2900-32007900530316952-31051-31752
Unemployment Rates (%)11,27,16,25,65,55,35,2
Average Consumer Inflation10,55,16,43,53,83,23,2
Public Revenues / GDP%17,915,614,914,314,114,914,4
Public Expenditures / GDP%17,416,917,516,816,616,616,3
Budget balance/GDP (%)0,6-1,5-2,7-2,5-2,4-1,7-1,9
Public Debt Stock / GDP%42,624,527,92829,430,130,3

Weaknesses in terms of Economy:

• Fragility against exchange rate fluctuations and external shocks,
• Deficiencies in its infrastructure, compared to the countries in the region such as Malaysia and Thailand,
• Excessive export dependence on commodity exports, especially to China,
• High degree of income inequality, • Short-term risk level is 1 and it corresponds to low level of risk, • Holding a medium – term credit rating at B.

Economic Strengths:

• Young and crowded population,
• Rich natural resources,
• Disciplined fiscal policies,
• Low public debt,
• Global financial crisis-resistant banking system,
• Stable international relations

Major Products in Indonesia’s Exports

Major Countries to Which Indonesia Exports

ChinaSingaporeJapan
IndiaPhilippinesMalaysia
KoreaThe NetherlandsThailand
TaiwanAustraliaVietnam
GermanySpainPakistan
Hong KongBangladeshItaly
USA  

Major Countries from which Indonesia Imports

ChinaSingaporeJapan
MalaysiaThailandUSA
KoreaAustraliaIndia
S. ArabiaGermanyVietnam
TaiwanUAEBrazil
CanadaHong KongRussia
Nigeria France 

The free trade area established between ASEAN Countries is a factor that increases the trade among these countries. Within the above mentioned free trade area, Indonesia has mutually eliminated customs duties in trade with other ASEAN countries.

General Sectoral Information

AGRICULTURE

32% of its workforce is employed within the agricultural sector. Indonesia is the 3rd largest rice producer in the world. In addition, a significant amount of palm oil is produced as well. It has more than 7.7 million hectares of unprocessed soil available. However, there is low efficiency.

There are certain amounts of spice and herbal product production in Indonesia. It is the second largest pepper (first white pepper) producer in the world after India and it produces around 100 thousand tons of pepper.

Apart from these, clove, coconut powder and cinnamon are among the spices produced within the country. Herbal products produced in the country include coconut, cashew, tea and exotic fruits.

Important fruits grown in the country are orange, mango, pineapple, papaya and banana. Other fruits demanded in the domestic market are rambutan, guava, avocado, durian and sapodilla. Fruit production center is Java Island, and durian fruit is produced on Sumatra Island.

INDUSTRY

The manufacturing sector accounts for 23.4% of the gross domestic product. 13% of its workforce is employed in the manufacturing sector. Foreign investors have built several billion dollar oil refineries and a large steel mill in recent years. Automobile manufacturers have made significant investments in recent years. While an increase is observed in the number of middle income households, consumer spending is increasing and companies operating in consumption-based areas are expanding their activities.

MINING

Recent researches carried out in Indonesia has shown that the country’s mineral reserves are much richer than expected. The country has sources of coal, tin, copper, nickel, bauxite, gold, silver, iron ore, kaolin, marble, granite. Mining production is expected to develop in the long run. 20% of world nickel production and 10% of aluminum production are being carried out in Indonesia.

ENERGY

Its proven oil reserves are 3.6 billion barrels. Central Sumatra is the main oil production region of the country. The country also has 2.8 trillion cubic meters of proven natural gas reserves. Indonesia is also an important coal supplier. Most of its production is exported to China and India.

MARITIME

Although Indonesia is a land of islands, it has a small ocean fleet as well. Its ports that can attract large ships are limited. Many of the cargo is unloaded in Singapore and transported to Indonesia by small ships. Its largest general cargo port is Tanjung Priok, located in Jakarta, and other three major loading ports of the country are Belawan, Tanjung Perak and Ujung Pagang ports.
The largest general cargo port of the country is Tanjung Priok, located in Jakarta, and other three major loading ports of the country are Belawan, Tanjung Perak and Ujung Pagang. Among the other ports, Tanjung Perak carries out operations of 1,200,000 TEU. Belawan has a capacity of 200,000 TEU, Tanjung Emas (Semerang) 260,000 TEU, Makassar 177,000 TEU, Pontianak 93,000 TEU, and Panjang 76,000.

RETAIL

There are few importers in the retail sector of the country. The most challenging area for these companies is the distribution channels due to the geographical structure of the country. In recent years, internet retailing has been developing in Indonesia as well as all over the world. Investors should pay attention to the gap in this area. Turkish products are limited to a few products on supermarket shelves. On the other hand, shelf prices have been examined and it is evaluated that we have the opportunity to enter the market in many products. For example, it is considered that the market potential is high in products such as cherry, lemon, orange, grape and pomegranate, among the fresh fruit and vegetable products. It has been determined that there are up to 5-10 times price differences between the shelf prices in these products in Indonesia and the shelf prices in Turkey. Additionally, it has been evaluated that there is potential in the market for other products such as olive oil, pasta, dried fruits and diapers as well.

CONSTRUCTION

Indonesian contracting companies also operate in the Middle East and South-East Asian countries and they have a positive approach to cooperation with Turkish firms within the Middle East countries.

CONTRACTUAL RELATIONS BETWEEN TWO COUNTRIES

The need for housing and infrastructure construction and renovation in Indonesia will continue to increase in the upcoming periods as well. There is an intense demand in the country in this regard. Especially in the housing sector, experienced domestic companies operate and take advantage of cheap labor. The opportunity for Turkish firms to benefit from the Turkish workforce, in which they provide advantages in other countries, is limited. Construction and technical consultancy sector are the sectors in which foreign capital ownership is limited.

It is considered that Turkish companies may be effective on projects if they enter the market with financing opportunities such as country loans.

It is expressed by professional organizations that there is a job opportunity for foreign contractors and technical consultancy companies in projects requiring high technology such as power plants and bridges.

Furthermore, the development of cooperation between Indonesian Contractors Association and National Association of Consultants and the equivalent organizations in our country will provide a connection between the companies of the two countries.

Information About the Market

INTELLECTUAL, COMMERCIAL, INDUSTRIAL PROPERTY RIGHTS

In Indonesia, significant progress have been made in terms of the protection of patents, trademark, copyright, trade secrets, industrial designs in recent years, and many world companies and brands have entered the country market to operate in the Indonesian market. On the other hand, it is worth noting that some of the violations have been witnessed in this large economy, where different legislation and/or practices can be seen in its wide geography.

According to the patents law adopted by the parliament in 2001, penalties for patent infringements were increased and an independent patent commission was set up to resolve disputes. Products and production methods are protected for 20 years according to this law.

Indonesia’s Copyright Act came into force in July 2003. Reconciliation The new law includes deterrent penalties in terms of piracy. Although the government has repeatedly expressed its intention to prevent copyright piracy, copyright piracy on computer programs, music tapes and books continues to exist.

The Trademarks Law, which is still in force, came into force in 2001 and includes various sanctions against trademark violations. This law protects trademark rights not on “first use basis” but on “whoever registers first” basis.

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DISTRIBUTION CHANNELS

Due to especially the logistical conditions and difficulties of Indonesia, it is critical to use effective distribution channels in this country, which is spread over a wide area. Therefore, benefiting from strong local distribution channels is among the indispensable conditions especially for new companies entering the market.

In terms of supply and shipping conditions, ensuring that our country’s export products can be delivered to Indonesia ports at competitive prices, in a way that meets customer satisfaction, on time and continuously is a matter that needs to be handled with great seriousness, and it should be taken into consideration that the domestic distribution of these products from the ports in question can be at least as problematic as overseas shipping.

On the other hand, it is possible for companies with foreign capital to operate in the distribution sector in Indonesia according to the legislation in force, but they have to partner with local companies while carrying out such activities. Although the said situation is likely to change in the changes planned for 2020, it is not possible for foreign capital companies to operate in the distribution sector without their local partners.

ADVERTISING AND PROMOTION

Local media and newspapers can be used to promote new products, especially in regions with high purchasing power, such as Jakarta and West Java. Newspapers can only spend 35% of their total content on advertising pursuant to the regulations. In addition, the number of pages of newspapers is limited to 24. This leads to high advertising fees for major newspapers.

Mail marketing can be effective in many situations provided that address lists are correct and up to date. Local marketing companies can also assist in placing brochures, slides, advertisements, posters on buses, stops and billboards. Television ads are also developing rapidly.

Newspapers are published in Indonesian, Chinese or English in the country and being read by a wide audience. The country’s leading newspapers are Kompas, Republika, Media Indonesia, Koran Tempo, and Seputar Indonesia. The main magazines are Gatra, Tempo and Kontan. There are private channels in television broadcasting. The state’s television channel is TVRI. Major private channels are Metro TV, RCTI, SCTV, Trans TV, and TV One.

SALES TECHNIQUES AND FACTORS AFFECTING SALES

Indonesian consumers, especially the low and middle income group, are very sensitive to prices and general economic trends. As a result, importing companies usually pay attention to price rather than quality.

The key factors for success in Indonesia are to be patient and to be present in the market. Companies that set up an office in the country or open a similar agency are more successful than companies that visit the region for sales purposes once a year. Indonesian consumers value brand loyalty and brand recognition.

Distribution of the product, advertisement and image should also be taken into account in pricing. Market research should be carried out meticulously for pricing, which is an important criterion for the success of the product in the market. Both consumers’ preferences and competitors’ prices should be examined in market research. Information can be obtained from local distribution companies in this regard.

AFTER SALES SERVICES

Another criterion that is significant in entering a market and affecting success is the after-sales services provided and supporting the consumers. That being said, due to the increase in distance and cost, various problems may occur in this regard.

Although hiring a local distribution company can help with this issue, finding a local partner in the region or establishing a service provider for this purpose may be more effective. Indonesian consumers give importance that after-sales services are provided locally and fast.

PUBLIC TENDERS

Indonesia is not a partner to World Trade Organization’s (WTO) Public Procurement Agreement. Within the framework of the presidency decision published in 2004, it is aimed to facilitate the implementation of state tenders and make them transparent. On the other hand, the new rules support the use of local resources and increasing local share in government projects.

According to the last decision the government has been working on regarding public tenders, foreign companies will be able to participate in the tenders that cost over 100 billion Rupiah in construction tenders, over 20 billion Rupiah in procurement tenders and over 10 billion Rupiah in consulting tenders. The major projects of the government are being published by the State Planning Organization (BAPPENAS). (www.bappenas.go.id)

For major tenders planned by the public, it is necessary to hold tenders based on international competition. That being said, in some projects, as in the field of construction, the condition of purchasing or exporting domestic goods and services is required. Furthermore, foreign co-investors are not able to participate in the medication procurement tenders of the state.

Foreign Trade Policy

Indonesia, which became a member of the World Trade Organization in 1995, imposes different customs duties on products originating from countries, which signed a free trade agreement or preferential trade agreement with Indonesia, especially ASEAN countries, in importation. Considering the limits reported to GATT, the maximum possible limit for agricultural products is 47% and it is 35.6% for nonagricultural goods.

TARIFFS AND OTHER TAXES

The country has an open economy, although imports are prohibited or restricted by quotas in some goods. Certain goods can only be imported by authorized importers. Indonesia implements tariffs and surcharges, which vary according to the needs and qualities of the product to be imported in order to regulate its imports activities.

The country imposes a 10% value added tax on all goods imported and produced in the domestic market and a sales tax ranging from 10% to 75% on luxury goods.

It has gradually facilitated the import of capital goods and intermediate goods since 1986 in order to allow domestic exporters to import the required inputs at competitive prices.

On the other hand, the process of lowering the related tariffs aimed at fulfilling Indonesia’s obligations under ASEAN trade agreements has been almost completed.

All these taxes for imported goods are collected at import points and calculated according to the value of the product, including import taxes.

NON-TARIFF BARRIERS

In exporting to Indonesia, many non-tariff barriers may be encountered due to relevant legislation and practices. In this framework, practices especially in agricultural products, food products with animal content, and in certain industrial products are remarkable. Additionally, the obligation to provide a pre-shipment inspection document for a significant number of product groups in Indonesia’s imports, import permits and licenses and letters of recommendation to be obtained from relevant institutions, and country/product restrictions imposed on imports for certain products create barriers that negatively affect trade.

Although halal certification, which is planned to be made compulsory in the future, is not compulsory in practice, as halal products are preferred in the country, Indonesian importers pay attention to the fact that the products that are within the scope of halal concept have halal certification. On the other hand, although it is tried to be changed, the halal certification system that is currently implemented and obliges certification to be carried out in Indonesia by the relevant Indonesian authority makes trade difficult.

There is a minimum unit price set for the calculation of customs duties in imports. Uncertainties in this practice sometimes create obstacles.

OTHER OBSTACLES

Indonesia’s forest products industry is strictly protected. Some companies operating in the field of cement, fertilizer and natural gas can benefit from various advantages and obtain unfair competitive powers due to being license holders.

PRACTICES REGARDING PRODUCT STANDARDS

The fact that standards applied in Indonesia are more flexible than international norms or compliance with standards is not compulsory in some areas, facilitates the compliance of imported products with the standards for certain sector products. The policy of conformity to standards is implemented by applying the Indonesian National Standards (SNI) published by the country’s standardization agency or international standards to products produced or imported domestically.

Pharmaceutical products and cosmetics to be imported to Indonesia are required to be registered with the National Medicines and Food Control Agency affiliated with the Ministry of Health. The domestic drug companies and authorized drug wholesalers are the ones who have to make this registration.

Foodstuff to be imported to Indonesia is required to be registered with the National Medicines and Food Control Agency affiliated with the Ministry of Health. The “Food Registration Certificate” to be obtained from this agency allows the entrance of such products to Indonesia. “Food Irradiation Certificate” must be obtained for imports of dairy products, meat, fish, fruits, vegetables, water and cereal products. In addition to the foregoing, there is a certification process to prove conformity of wheat flour to Indonesian standards. At the end of this process, “Wheat Flour Compliance Certificate” is obtained and imports can be carried out.

The label of all consumer goods to be imported to Indonesia must be written in Indonesian. Other languages can be used on the labels, but the main part of the label must be in Indonesian.

Trade Relationship With Turkey

Turkey-Indonesia Foreign Trade
YearExports US$Imports US$VolumeBalance
2016258.839.3741.454.130.7551.692.970.129-1.175.291.381
2017245.225.9261.495.465.8211.740.691.747-1.250.239.895
2018286.302.7541.361.378.8341.647.681.588-1.075.076.080
2019289.372.2811.352.296.3091.641.668.674-1.062.924.112
2020 (January-March)81.980.354424.901.265506.971.619-343.010.911
Turkey’s Major Export Items To Indonesia
GTİİP / HS CODEPRODUCT
7207SEMI-FINISHED PRODUCTS OF IRON OR NON-ALLOY STEEL
2401UNMANUFACTURED TOBACCO; TOBACCO REFUSE
2840BORATES; PEROXOBORATES (PERBORATES)
5702CARPETS AND OTHER TEXTILE FLOOR COVERINGS
2836CARBONATES; PEROXOCARBONATES; COMMERCIAL AMMONIUM CARBONATE CONTAINING AMMONIUM CARBONATE
8544INSULATED WIRE CABLE AND OTHER INSULATED ELECTRIC CONDUCTORS, OPTICAL FIBER CABLES, MADE UP OF INDIVIDUALLY SHEATHED FIBERS
2610CHROMIUM ORES AND CONCENTRATES
8504ELECTRICAL TRANSFORMERS, STATIC CONVERTERS (FOR EXAMPLE, RECTIFIERS) AND INDUCTORS
6214SHAWLS, SCARVES, MUFFLERS, MANTILLAS, VEILS AND THE LIKE
2515MARBLE, TRAVERTINE, ECAUSSINE AND OTHER CALCAREOUS MONUMENTAL OR BUILDING STONE
0805CITRUS FRUIT, FRESH/DRIED
5209WOVEN FABRICS OF COTTON, CONTAINING 85% OR MORE BY WEIGHT OF COTTON, WEIGHING MORE THAN 200 GR/M²
5402SYNTHETIC FILAMENT YARN (OTHER THAN SEWING THREAD), NOT PUT UP FOR RETAIL SALE
8451WASHING, CLEANING, DRYING, IRONING, FINISHING, COATING TEXTILE YARNS, FABRICS OR MADE UP TEXTILE ARTICLES
8708KARAYOLU TAŞITLARI İÇİN AKSAM, PARÇA VE AKSESUARLAR / PARTS AND ACCESSORIES OF THE MOTOR VEHICLES
1101WHEAT OR MESLIN FLOUR
6802WORKED MONUMENTAL OR BUILDING STONE (EXCEPT SLATE) AND ARTICLES THEREOF, MOSAIC CUBES AND THE LIKE
9018INSTRUMENTS AND APPLIANCES USED IN MEDICAL, SURGICAL, DENTAL OR VETERINARY SCIENCES
8450WASHING MACHINES, HOUSEHOLD- OR LAUNDRY-TYPE INCLUDING MACHINES WHICH BOTH WASH AND DRY; PARTS THEREOF
8705SPECIAL PURPOSE MOTOR VEHICLES, (FOR EXAMPLE, WRECKERS, MOBILE CRANES, FIRE FIGHTING VEHICLES, CONCRETE MIXERS, ROAD SWEEPERS, SPRAYING VEHICLES, MOBILE WORKSHOPS, MOBILE RADIOLOGICAL UNITS)
Turkey’s Major Import Items From Indonesia
GTİİP / HS CODEÜRÜNLER / PRODUCTS
4001NATURAL RUBBER, BALATA, GUTTA-PERCHA, GUAYULE, CHICLE AND SIMILAR NATURAL GUMS
5509YARN (OTHER THAN SEWING THREAD) OF SYNTHETIC STAPLE FIBERS, NOT PUT UP FOR RETAIL SALE
5402SYNTHETIC FILAMENT YARN (OTHER THAN SEWING THREAD), NOT PUT UP FOR RETAIL SALE
5504ARTIFICIAL STAPLE FIBERS, NOT CARDED, COMBED OR OTHERWISE PROCESSED FOR SPINNING
5407WOVEN FABRICS OF SYNTHETIC FILAMENT YARN
5510YARN (OTHER THAN SEWING THREAD) OF ARTIFICIAL STAPLE FIBRES
1511PALM OIL AND ITS FRACTIONS, WHETHER OR NOT REFINED, BUT NOT CHEMICALLY MODIFIED
5516WOVEN FABRICS OF ARTIFICIAL STAPLE FIBRES
4802UNCOATED PAPER AND PAPERBOARD, NON PERFORATED PUNCH CARD AND PUNCH TAPE PAPER OF ANY SIZE
3823INDUSTRIAL MONOCARBOXYLIC FATTY ACIDS; ACID OILS FROM REFINING; INDUSTRIAL FATTY ALCOHOLS
2701COAL; BRIQUETTES, OVOIDS AND SIMILAR SOLID FUELS MANUFACTURED FROM COAL
6404FOOTWEAR, WITH OUTER SOLES OF RUBBER, PLASTICS, LEATHER OR COMPOSITION LEATHER AND UPPERS OF TEXTILE MATERIALS
6403FOOTWEAR WITH OUTER SOLES OF RUBBER, PLASTICS, LEATHER OR COMPOSITION LEATHER AND UPPERS OF LEATHER
8001UNWROUGHT TIN
8708PARTS AND ACCESSORIES OF THE MOTOR VEHICLES
1513COCONUT (COPRA), PALM KERNEL OR BABASSU OIL AND FRACTIONS THEREOF, WHETHER OR NOT REFINED, BUT NOT CHEMICALLY MODIFIED
1517MARGARINE
4703CHEMICAL WOOD PULP, SODA OR SULPHATE
1516ANIMAL OR VEGETABLE FATS AND OILS AND THEIR FRACTIONS
3204SYNTHETIC ORGANIC COLORING MATTER, SYNTHETIC ORGANIC PRODUCTS USED AS FLUORESCENT BRIGHTENING AGENTS OR AS LUMINOPHORES
Agreements and Protocols that Establish the Infrastructure of Trade Between Two Countries
Title of the AgreementSignature Date
Trade Agreement14/09/1959
Agreement on Economic and Technical Cooperation18/12/1982
 Agreement on Double Taxation Avoidance25/02/1997
8th JEC Protocol11-12/10/2017

After the EU-ASEAN Free Trade Agreement (STA) negotiations started on 4 May 2007, an attempt was made on June 12, 2007 to initiate STA negotiations between our country and ASEAN. On July 28, 2008, meetings were held with ASEAN Secretary General and Indonesian authorities in an exploratory manner, and after these conversations, a non-paper was sent to the Economy and Foreign Affairs Ministries of ASEAN Countries on August 6, 2008 and subsequently a letter to the economy ministers of ASEAN countries for the start of the STA negotiations and their support was requested.

In the reply letter sent by Indonesia on September 16, 2008, it was stated that Turkey should be a Dialogue Partner with ASEAN in order to start Turkey-ASEAN STA negotiations. In this framework, the efforts to establish the mentioned Dialogue Partnership are carried out by our Ministry of Foreign Affairs.

On the other hand, during the “ASEAN-EU Finance Ministers’ Meeting” between ASEAN and the EU held on 4-5 May 2009 in Siem Reap, it was decided to freeze STA negotiations between the two organizations. After this, our country made an attempt at the end of July 2009 to start bilateral STA negotiations with some of the ASEAN countries, namely Singapore, Malaysia, Indonesia, Thailand, Vietnam, Philippines and Brunei, which are prominent in terms of economic size, without waiting for the EU to take a similar decision.

The first negotiation, with regards to a Comprehensive Economic Partnership Agreement (CEPA) to be signed between Turkey and Indonesia, was held in Jakarta on 8-9 January 2018, and the fourth of these negotiations was held in Ankara on 30-31 January 2019. Negotiation process is still ongoing.

8th Period meeting for Turkey-Indonesia Joint Commission for Economic and Technical Cooperation was held in Jakarta on 11-12 October 2017.

TURKEY-INDONESIA INVESTMENT RELATIONS

According to the official sources of Indonesia, the “total investment amount” made by Turkish companies to Indonesia reached 115 million dollars by the end of 2019.

TRADE PROBLEMS BETWEEN TWO COUNTRIES

The import of meat and meat products and milk and milk products (excluding milk powder) originating from our country to Indonesia cannot be made on account of the foot and mouth disease in our country.

Within the framework of the new regulations published by the Ministry of Agriculture of Indonesia on February 17, 2015 and entered into force one year later, import of agricultural products is possible provided that they are among the products that are allowed to be imported from Turkey by the Ministry of Agriculture of Indonesia and only if they are certified subject to the conformity assessment of approved Turkish laboratories and imported in this manner. The said application also brings along requirements such as the provision of an analysis certificate within the framework of the preliminary notification mechanism for the import of related agricultural products.

As of today, approval has been obtained for 15 Turkish laboratories to be used in agricultural product analysis. Currently, there are 20 agricultural products that are allowed by the Ministry of Agriculture of Indonesia to be imported from Turkey provided that they meet the implementation requirements of the relevant legislation.

In the import of food products, the ML (Overseas Mark) practice, which is obtained from the Ministry of Health by the importer before the import, continues and this practice prolongs the import procedure in terms of time.

Another problem faced by our exporters is the minimum unit price practice for the calculation of customs duties in imports. Uncertainties in this practice are an obstacle for our exports. The amount of customs duties on imports is increased with this practice. In our export of food products to Indonesia, Halal Certificate is requested by the importers to show that the goods are prepared and processed in line with Islamic principles. Even though Halal Certificate is not a mandatory document required during import, it is an essential document in the domestic marketing of the product. The document obtained in Indonesia is given by the Indonesian Council of Ulama Assessment Institute. In order to obtain the certificate, it is necessary that the council experts supervise the production facilities following the manufacturer’s application. This process brings additional burden to our exporters.

In case of a commercial dispute, it takes a long time to finalize the legal proceedings regarding the receivables and to settle disputes. As a result, the form of payment is important for our companies. Our companies should take this into consideration. Under the current regulations in Indonesia, if our companies are defrauded, they must personally apply to the judicial authorities for legal proceedings. In the absence of a personal application, proceedings cannot be carried out. Police research takes a very long time and the results are limited. Mutual contact is an important factor in trade relations with this country.

There is an anti-dumping duty on imports for a total of 10 product groups to be imported from Indonesia, such as air conditioning, polyester fiber, laminated parquet, iron and steel pipe connections, polyester texturized yarn, synthetic and artificial staple fibers, hinges and fixed hangers, motorcycle and bicycle inner and outer tires and glass covers. The dominance of intra-regional trade in the Far East, freight prices, the inadequacy of information of our exporters about the market and the shortterm perspective are other obstacles faced by our exports.

STRENGTHS IN BILATERAL TRADE

  • Our export to Indonesia is gradually increasing.
  • Recent top-tier visits and positive political relations between the two countries.

WEAKNESSES IN BILATERAL TRADE 

  • Geographic distance between the two countries.
  • Indonesia’s close trade relations with ASEAN, China, Japan and South Korea and the trade agreements with these countries.
  • Cultural differences between our country and Indonesia.
  • The fact that our country and the products we produce are not well known in the country.

OPPORTUNITIES

  • Continuous growth of the Indonesian economy.
  • Muslim population in the country.
  • STA negotiations between our country and Indonesia, which are on the agenda.
  • The abundance of people from Europe and America living in the country.
  • Customs tax rate is 5% in most agricultural and food products.
  • Tendency towards new tastes with the increase in per capita income
  • Increased demand for retail food products with more women participating in business.

THREATS

  • With the effect of Free Trade Agreements of companies from China and other Asian countries, especially ASEAN countries, the positive contribution of Asian countries such as China, S. Korea, Japan, India, Malaysia in the country in the field of investment and trade in favor of these countries.
  • Insufficiency of Turkish citizens living in Indonesia, the low awareness of Turkish companies, products and brands.
  • The importance of face-to-face contact in the Indonesian business culture, however, its geographic distance from our country
  • The fact that Turkish business people do not pay enough attention to Indonesia in general.
  • Although there are efforts to improve this situation by the authorities, the intensity of bureaucratic procedures and the difficulty of import transactions.
  • The fact that Indonesia is not fond of imports, and its understanding and approach trying to maintain the current situation and nontariff trade barriers.

AGREEMENTS

  • 1993: 18 Şubat 1993 / February 18, 1993 – Air Transportation Agreement (HUA)
  • 1997: 25 Şubat 1997 / February 25, 1997 – Agreement on Double Taxation Avoidance
  • 1997: 16 Mayıs 1997 / May 16, 1997 – Memorandum of Understanding (MOU)
  • 2010: Free Trade Agreement – In 2010, a joint work group was created on this subject. Various negotiations and communications were carried out. Negotiations are ongoing.
  • 2017: 7 Temmuz 2017 / July 7, 2017 – Letter of Intent Agreement Between Ministries of Health

Main Sectors With Export Potential

Besides agricultural products such as wheat flour, olive oil, olives, tomato paste, dried fruits and nuts, tobacco, fresh fruits and vegetables, Indonesia is also a potential market for products such as iron and steel products as industrial products, milling machines, food processing, packaging machinery and equipment, textile machinery, woodworking machinery, building materials, marble, carpet, prayer rug and defense industry products.

POTENTIAL EVALUATION

In order to increase our exports to Indonesia, which is among the priority countries of the 2020-2021 period as stated by the Ministry of Commerce, it is necessary to attach importance to promotional activities in this regard. In the conversations carried out, it was determined that it is not known which products Turkey produces and exports. Except for flour, importers do not have significant information about Turkish products. It was also observed that Turkish companies were not acting aggressively in the market. The Chinese, who make up about 5% of the population, are mostly interested in trade. The Chinese have a great weight in the economy. Turkish companies, who want to establish a commercial relationship with Indonesia, should know that they will face the Chinese companies and they need to take positions accordingly.

Private sector representatives state that they think very positively about our country and that there can be many common points in terms of trade with our country. In addition, private sector representatives also state that they want to have one-to-one contact directly with the institutions and company representatives in our country on a sector basis. They state that they want to have a direct contact with the representatives of our private sector towards trade and shopping on what can be bought and sold on a sectoral basis.

The issue that the private sector representatives strongly emphasize is that commercial relations should be based on long-term relationships. In addition to important business relationships such as price, quality, shipment, mutual gain, payment, establishing a long and continuous business partnership is also fundamental. In this respect, while declaring that they want to work with Turkish companies, they did not neglect to explain their thoughts on these issues. It is observed that great importance was attached to this matter in Indonesian business culture.

It is also seen that daily commercial life is very lively and active in Indonesia, shopping malls, supermarkets, hyper markets and other shopping places are generally crowded and this crowd increases even more on weekends and public holidays. Citizens prefer indoor spaces instead of open air to spend time due to the tropical climate in the country.

The amount of imports from our country is very limited when we consider the import potential of Indonesia. The biggest reason for this situation is stated as the lack of publicity of Turkey in Indonesia. Indonesians mostly have positive thoughts about our country, but they do not have enough information about our country in terms of commerce. Our products are not well known in the Indonesian market. The fact that the variety and quality of Turkish products is not known is one of the problems encountered in Indonesia.

Therefore, it is necessary to organize special promotional programs for the promotion of our goods and to regularly attend fairs for product and country promotion in this country. It is observed that even opening small stands in Shopping Malls for product tasting in terms of food products can be an effective promotional tool. It is observed that such promotions could not be carried out because Turkish companies in Indonesia are small-scaled companies.

Since Turkish goods are not recognized in Indonesia, there is no positive or negative bias towards Turkish goods. It is noteworthy that large-scale companies in Turkey have not yet entered the Indonesian market directly. This situation leads to low promotion activities of Turkish goods in Indonesian market. If large-scale Turkish companies enter the Indonesian market by opening a branch or through an agency, this will contribute to the promotion of Turkish products in Indonesia. Additionally, entering the market with branded products will help create a positive image of Turkish goods. Even though the long transportation in the export to the Far East countries and the absence of regular flights seem to be a problem, it offers some opportunities as well.

It is learned that the ships from Indonesia go full on their way to Turkey, and they are empty when returning. For this reason, when sending goods from our country to Indonesia, there are opportunities where goods can be sent half as cheaply.

It is necessary to pay attention to packaging, especially when selling food products to Indonesia.

Since the climate is generally humid, it is important to minimize the contact of the product with air by using vacuum packages in order to protect the products. It is observed that consumers attach great importance to packaging. In addition, due to the increased sensitivity to health issues in recent years, nutritional values are required be stated on the product.

Given that nearly half of the world’s population lives in Asia, it is important to increase the relations with this country in terms of both public and private sectors, taking into account Indonesia’s Muslim identity, strategic location in the region, and the desire to trade more with our country as well.

Life in Indonesia

Seasonal conditions in Indonesia are quite different from Turkey. The weather conditions, which have an average temperature of 26-32 for four seasons, are divided into two as the rainy season and the summer season.

It is seen that foreigners visiting the country spend more time in air-conditioned environments due to the high humidity and temperature outside. Therefore, it is considered that those who go to Indonesia should not only bring thin clothing items, but also longsleeved clothes that are not thick as well, considering the air-conditioned environment they will be spending time in.

The most remarkable centers for tourists coming to Jakarta are the Monas Tower (which also has a museum under the tower) with a view of Jakarta’s surroundings, and the cultural park Taman Mini, where houses and clothing are displayed in all parts of Indonesia. Additionally, there are facilities and activities related to nature tourism in the centers (Bandung, Bogor, Punjak, Taman Safari, etc.) at close distances to Jakarta city center (1-3 hours by road).

Indonesia’s world-known region which attracts many tourists is Bali Island which is located in the southeast of the capital Jakarta. The island is accessible from Jakarta with a domestic flight and there are direct flights from neighboring countries to Ngurah Rai International Airport, located in Bali.

Bali Island, where 93% of the population is Hindu, offers rich opportunities in terms of nature, shopping, historical centers and nightlife for tourists.

Hundreds of islands, which are not known as Bali on an international scale and of which the infrastructure facilities are not very developed in terms of touristic visits, are being visited by domestic and foreign tourists, and 1000 Islands (Thousand Islands), Lombok, Gili and Sulawesi are also among these centers that are considered attractive in terms of tourism.

There are developed modern shopping centers in all major cities in Indonesia, especially in Jakarta, and products of world-famous brands can be purchased in these shopping centers.

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NOTES FOR THOSE PLANNING TO VISIT INDONESIA

With the Presidential Decree published in December 2015, the list of countries with visa exemption was updated, and ports and airports for visa-free entry were determined. As per the mentioned arrangement, Turkish citizens who are ordinary passport holders are exempt from visa for their visit to Indonesia up to 30 days of residence, provided that it is limited to touristic visits  and they enter the country from designated airports and ports. The 30-day exemption period cannot be extended.

Visa-Free Airports:

1. Jakarta, Soekarno-Hatta International Airport,
2. Surabaya, Juanda International Airport,
3. Bali (Denpasar), Ngurah Rai International Airport,
4. Medan, Kualanamu International Airport,
5. Batam, Hang Nadim International Airport.

Our citizens who will enter from a point other than the above mentioned airports can get a visa at the entrance gates for 35 dollars, limited to touristic visits.

It is recommended to obtain a visa from Embassy of The Republic of Indonesia, in Ankara, for visits with a purpose other than tourism.

Those who are holders of special passports (green) can enter the country without a visa up to 30 days of residence from the entry points where visa exemption is granted. Visa exemption period for private passport holders from other entry points is limited to 14 days.

Indonesian authorities are looking for a validity period of at least 6 months from the date of entry in all passports.

If Turkish citizens traveling to Indonesia with a tourist visa exceed their travel time, they will be fined 25 dollars in local currency for each day they exceed the visa period while returning, and they will also have to wait at the Immigration Office.

RESIDENCE TERMS IN INDONESIA

Those who want to get a residence permit after going to Indonesia are required to apply to the Indonesian Immigration Office. The longest residence permit that can be obtained is 5 years. In order to obtain such a permit, those who will work in Indonesia must bring a sponsor paper from the company they work for, to the Indonesian Immigration Office. On the other hand, those who are married to Indonesian citizens may also be entitled to get a residence permit.

In addition, Turkish students studying in Indonesia can obtain a residence permit if they bring a document indicating that their studentship is registered, to the Immigration Office.

Your Business Partner in Indonesia:
Türkiye Business Center

We support you in many areas such as investment consultancy, trade consultancy, facility services, business management and more.

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