In recent years, the Southeast Asian e-commerce market has been growing rapidly, and Indonesia, as the largest economy in the region, has become a must-contend place for Chinese cross-border merchants by virtue of the dividend of a population of 270 million people and the fast-developing Internet economy. However, if you want to gain a foothold in the Indonesian market, logistics efficiency and localized operation are key, and overseas warehouse is the core weapon to break the ice.
Opportunities and Challenges of Indonesian E-commerce
Indonesia's e-commerce market has huge potential, but cross-border sellers also face two core challenges:
Long logistics timeframe - it usually takes 7-15 days to ship directly from China to Indonesia, which affects the user experience.
Complicated customs clearance - Indonesia's customs policy is strict, especially during the “red light period” from December to March every year, the difficulty of customs clearance increases steeply, and the risk of goods being stranded is high.
Overseas warehouse model can effectively solve these problems:
✅ Shorten delivery time (1-3 days for local shipments)
✅ Reduce logistics costs (avoid high freight costs for international express delivery)
✅ Increase platform weight (Shopee, TikTok and other platforms prefer local warehouse sellers)
Why 70% of Indonesian overseas warehouses are chosen in Jakarta?
Observing the Indonesian market, you will find an interesting phenomenon: over 70% of e-commerce orders are concentrated in Jakarta, and most of the overseas warehouses are also laid out here. There are three core reasons behind this:
1. Geographic location: the logistics heart of Indonesia
Jakarta is located on the northwest coast of Java, not only the political and economic center of Indonesia, but also one of the most important transportation hubs in Southeast Asia:
Sea Transportation: The outer port Tanjung Priok is the largest port in Indonesia, carrying 60% of the country's import and export cargo.
Air transportation: Soekarno-Hatta International Airport is one of the busiest air hubs in Southeast Asia, connecting to major cities around the world.
Land Transportation: Java has a well-developed road and railroad network, providing quick coverage to major cities such as Bandung, Surabaya, and Semarang.
Conclusion: Setting up a warehouse in Jakarta can maximize the radiation of Indonesia's core consumer market and improve logistics efficiency.
2. Economic center: the market with the strongest purchasing power
GDP accounts for 28.7% of the country, and the per capita consumption level is much higher than other regions.
With a population of over 10 million, e-commerce users are concentrated and order density is high.
Strong demand for localization: Jakarta consumers prefer “fast delivery”, and overseas warehouses can greatly increase the repurchase rate.
3. Mature policies and infrastructure
Compared with other cities, Jakarta's warehousing and logistics system is more complete, including:
Professional customs clearance services (reduce the risk of customs seizure)
Intelligent sorting system (to improve order processing efficiency)
Local distribution network (in-depth cooperation with JNE, J&T, etc.)
How to choose the right overseas warehouse in Indonesia?
Although Jakarta is the first choice, sellers still need to base on their business layout:
If the main focus is on the Java market → Jakarta and Tanggelang overseas warehouses are optimal.
If the target users are concentrated in Surabaya, Bali → can consider the East Java region of the warehouse.
At present, some Chinese logistics companies have established mature warehouse networks in Indonesia, for example:
Jakarta Overseas Warehouse (covering Greater Jakarta area)
Tanggelang warehouse (close to the port, suitable for bulk cargo)
Surabaya warehouse (serving the East Indonesia market)
Translated with DeepL.com (free version)
