Indonesia is the world’s largest archipelago, or group of islands, and a key player in international trade from the UK to ASEAN. With over 17,000 islands, Indonesia’s ports are essential for facilitating the movement of goods by sea freight, making it an attractive destination for businesses in the UK looking to expand their reach. The country’s ongoing investment in port infrastructure and logistics improves connectivity and its capacity to handle increasing trade volumes.
What are the benefits of shipping to Indonesia for international trade?
If you’re considering international maritime trade, there are several advantages to shipping from the UK to Indonesia:
- Strategic Location: Indonesia’s geographical position at the crossroads of major shipping lanes like the Strait of Malacca makes it a pivotal point for trade between the Pacific and Indian Oceans. This location makes it quicker to access markets in Asia, Australia, and beyond.
- Growing Economy: As the 10th fastest-growing economy in Asia, Indonesia has a significant number of consumers. With a population exceeding 280 million, there is a rising demand for various goods and services, making it an attractive destination for exporters.
- Infrastructure Development: The Indonesian government has prioritised the development of its port facilities and logistics networks, with the National Port Master Plan (NPMP) outlining the development of 1321 more ports around the country. Ongoing investments in infrastructure improve efficiency, reduce congestion, and enable smoother shipping operations.
- Diverse Trade Opportunities: Indonesia is rich in natural resources and has a growing manufacturing sector, which is the country’s largest GDP contributor. This diversity creates numerous business opportunities in industries such as agriculture, textiles and electronics.
- ASEAN Integration: As a member of the Association of Southeast Asian Nations (ASEAN), Indonesia benefits from regional trade agreements that promote easier access to neighbouring markets. In recent years, the UK and Indonesian governments have held a Joint Economic and Trade Committee (JETCO) aimed at boosting trade ties. This integration fosters a more positive trading environment for international businesses.
The Major Ports of Indonesia
Indonesia’s extensive coastline is home to several ports that are vital in facilitating international trade around Southeast Asia. Indonesia is a maritime hub with around 636 ports, 102 commercial ports and 534 non-commercial ports.
Jakarta Port (Port of Tanjung Priok)
Jakarta Port, also known as Tanjung Priok, is Indonesia’s largest and busiest container port, handling over 50% of the country’s trans-shipment cargo. Located in the capital city, it is the primary gateway for imports and exports, with a total capacity of about 8 million TEUs. With advanced facilities, a deep-water harbour, and the development of a new terminal capable of accommodating larger vessels, Tanjung Priok has become a hub for global trade.
Belawan Port
Situated in North Sumatra, the port of Belawan is the busiest seaport outside of Java. It is strategically located near the Malacca Strait, a significant trade route to Malaysia and Singapore. This port primarily handles bulk cargo, containers, and general cargo, supporting trade with both domestic and international markets.
Gresik Port
Gresik Port is located in East Java and is an important industrial port that supports the cement industry and other manufacturing sectors. With its close proximity to Surabaya, one of Indonesia’s largest cities, Gresik Port is integral to facilitating trade for goods like chemicals and fertilisers, as well as both bulk and containerised cargo.
Cirebon Port
Cirebon Port is on the north coast of Java and serves as a vital link for trade in West Java. It handles various types of cargo daily, including agricultural products, textiles, and manufactured goods. The port’s modern facilities and accessibility make it an essential hub for regional trade.
Teluk Bayur Port
Teluk Bayur Port is situated in West Sumatra and is one of the most important ports on the western coast of Indonesia. This strategic location supports trade with both domestic and traditional markets in coal, palm oil, and general merchandise.
Dumai Port
Dumai Port, located in Riau Province, is strategically positioned near the Strait of Malacca, allowing for efficient shipping routes to Malaysia and beyond. It is equipped to handle dry and liquid bulk, breakbulk and petroleum cargoes and containers.
Pontianak Port
Located in West Kalimantan, Pontianak Port is a trading post connecting Indonesia with Malaysia and Brunei. It primarily handles agricultural products and timber, processing around 7,000 vessels and 143,000 TEUs a year.
Jambi Port (Talag Duku)
Jambi Port, also known as Talag Duku, is located on Sumatra’s east coast. It is an integral port for the shipment of palm oil, rubber, and other agricultural products. The port’s facilities are designed to accommodate bulk carriers and container ships.
The Best Shipping Routes to Indonesia from the UK
When shipping goods from the UK to Indonesia, selecting the right international shipping route will affect the cost and time of the shipment.
1. Direct Shipping Routes
Several shipping lines have direct services from the main shipping ports in the UK, like Felixstowe and Southampton, to Jakarta Port (Tanjung Priok). Direct routes typically provide faster transit times, usually ranging from 25 to 30 days, depending on the specific service and any potential delays.
2. Transshipment Routes via Singapore
A common option that many exporters choose involves transshipping through Singapore, one of the busiest ports in the world. Goods are shipped from the UK to Singapore, where they are transferred to vessels heading to various Indonesian ports. This route is more flexible for final destinations like Surabaya or Belawan and can be helpful if you’re learning to manage logistics and costs.
3. Transshipment Routes via Hong Kong
Another option is to route your shipments through Hong Kong. Similar to Singapore, this route provides access to multiple Indonesian ports. The transit time for shipping from the UK to China is approximately 20 days (or shorter if you choose air freight for this section of the journey), followed by an additional 5-10 days for onward shipping to Indonesia.
4. Combined Land and Sea Routes
For certain types of cargo like medical supplies or construction materials, particularly those destined for regions outside major port cities, a combined land and sea route may be best. This involves shipping goods to a port in Indonesia (like Jakarta) and then using land trucking or rail transport to reach inland destinations like Jambi or Pontianak. This approach can optimise delivery times for specific markets.
5. Use a Freight Forwarder for the Best Route
Choosing a reputable freight forwarder like us at SL Global Logistics can simplify the shipping process. We provide valuable insights into the best maritime routes based on current market conditions, cargo type, and destination requirements. Freight forwarders often have established relationships with carriers, which means we can get better rates for more efficient logistics.
Let Us Help You Navigate Indonesia’s Shipping Landscape
Shipping to Indonesia can be complex, but you don’t have to do it alone. At SLG Logistics, we specialise in helping businesses in the UK connect with the growing markets in Indonesia and across ASEAN. Our team understands the ins and outs of international sea freight, including the major ports and shipping routes that can make your logistics smoother and more efficient.
If you’re looking to export goods from the UK to Indonesia, we’re here to help. Reach out to us today to discuss how we can support your shipping needs and make sure your products reach their destination on time.