Logistics Knowledge Base
Practical logistics references for Indonesian import-export shipments: Incoterms, customs context, freight modes, packing, and documents.
Incoterms® 2020: Quick Reference
Incoterms define the responsibilities of buyers and sellers in international trade — who pays what, where risk transfers, and who handles insurance and customs.
Why It Matters
- Clarity: Clear definition of obligations between buyer and seller.
- Cost Control: Who pays for freight and insurance.
- Risk Management: When responsibility transfers.
Common Mistakes in Indonesia
- Using FOB for containers — should be FCA.
- CIF doesn't mean all costs are covered to the warehouse — only to the destination port.
- Forgetting insurance when buying CFR or CPT.
6 Most Commonly Used Incoterms
| Incoterm | Export Customs | Main Carriage | Insurance | Import Customs | Delivery to Door |
|---|---|---|---|---|---|
| EXW | Buyer | Buyer | Buyer | Buyer | Buyer |
| FCA | Seller | Buyer | Buyer | Buyer | Buyer |
| FOB | Seller | Buyer | Buyer | Buyer | Buyer |
| CFR | Seller | Seller | Buyer | Buyer | Buyer |
| CIF | Seller | Seller | Seller | Buyer | Buyer |
| DDP | Seller | Seller | Seller | Seller | Seller |
FOB — Most common for Indonesian commodity exports (coal, CPO) from Kalimantan/Sumatra.
FCA — More appropriate than FOB for containers. Risk transfers when the container is handed to the carrier, not when loaded onto the vessel.
DDP — Avoid if the seller has no local entity in Indonesia to handle PIB and import taxes.
Need help choosing the right term for your shipment? Contact GPI to review the route, cargo, and responsibility split.
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