What Products are Made In Indonesia? // Indonesia Sourcing and Manufacturing Guide

Of the products made in Indonesia, over 70% of its exports stay in Asia, while 11% go to North America, and 10.6% end up in the European Union. Cosmo Sourcing has done two projects in Indonesia, one for wood for industrial uses, and another for Hiking Boots.

Indonesia is located just off the coast of Southeast Asia. Also called the Republic of Indonesia, this country is home to more than 300 different ethnic groups, with the major religion being Islam. The Indonesian Rupiah is the main currency used in the country. 

Indonesia considered being a growing nation. This, however, does not mean Indonesia does not offer opportunities. There is a growing potential among local manufacturers in Indonesia, providing a range of expert consumer goods to brands and companies from other countries. 

As a newly industrialized country, Indonesia has seen significant growth in its economy over the last five decades. 

What Products Made In Indonesia?

Indonesia is popular for its homegrown products, which includes quite a large variety of items.  Products produced in Indonesia include palm oil, forest products, medicinal herbs, coffee, and even cocoa. Spices are also homegrown in Indonesia while there is a 60% homeland consumption rate of these goods, the remaining 40% provided as export items. 

Many other products are also frequently exported from Indonesia to countries throughout the world. The products often provide a cost-effective way of stocking shelves and even online stores, without the prices involved with sourcing these items from local manufacturing plants. 

Shoes And Footwear Suppliers In Indonesia

Indonesia is the 4th largest producer of shoes behind China, India, and Vietnam. Indonesia produced 1.8 Billion pairs of shoes worth more than USD 5 Billion. According to Indonesia Expat, there are 155 large factories and a staggering 18,000 small scale businesses that produce shoes. Major brands, including Nike and Adidas, are made in Indonesia as well as hiking boots, leather shoes, sandals and much more.

There are different kinds of shoes manufactured in Indonesia, which means companies can target multiple audiences when they choose important footwear products from Indonesian manufacturing plants. 

Wooden Goods Suppliers In Indonesia

Indonesia has a large number of wood plantations that produce very high-quality tropical hardwoods. Due to national laws, they cannot export raw or unfinished wood; as a result, all wood exports from the country have to be finished goods. As the wood is very dense, this is suitable for applications such as the handle of tools and other uses in which strength is needed.

Beyond industrial uses, there is quite a large variety of wooden goods that you can purchase from factories in Indonesia.

 Businesses that can opt for a range of wooden products are also able to save a large amount of money in the process. Hiring a product designer to come up with a new design for furniture can be costly and also time-consuming. Importing raw materials means a manufacturing facility in the local area is needed, along with staff who can assist in the manufacturing process. 

Wooden Furniture suppliers in Indonesia

Factories in Indonesia use the latest furniture manufacturing techniques to create furniture with up to date trends and designs. These factories deliver modern products to companies who sell furniture – without the costs that are generally involved with new product designs and the manufacturing process. 

OEM and ODM solutions are available when setting up production plans with a wood manufacturer in Indonesia. This allows a company owner to get a new design for furniture from their engineers and product developers – they then give the design over to the Indonesian factory for manufacturing. 

Clothing, Apparel, And Garments Suppliers In Indonesia

Indonesia is one of the top 10 largest clothing and apparel producers in the world and exported more than USD 15 Billion in 2018. Indonesia makes a wide range of Garments and accessories that are shipped throughout the world.

Even though clothing is made in bulk at Indonesian manufacturing plants, many factories take the time to ensure adequate quality. This provides business owners with an opportunity to sell higher-quality clothing items to their customers. Even brands like Tommy Hilfiger and Calvin Klein use garment and textile manufacturers from Indonesia. 

Rubber Products Suppliers in Indonesia

Rubber products are also often exported from Indonesia. Throughout the world, Indonesia ranks number two when it comes to the production of natural rubber, falling just behind Thailand. About 3,200,000 tons of natural rubber is produced in Indonesia every year. 

South and North Sumatra, along with Riau, Jambi, and the West Kalimantan regions are where the majority of rubber production occurs within Indonesia. 

Technically specified rubber makes up for the largest portion of rubber products exported from Indonesia. More than 70,000 tons of ribbed smoked sheet rubber products exported from Indonesia on an annual basis. Concentrated latex is also produced locally and exported to other countries. 

Other Products Manufactured In Indonesia

Apart from clothing, wooden items, and footwear, there are a few other categories of items commonly made in Indonesia. 

Homegrown products are one thing Indonesia is well-known for – and a large amount of the homegrown products exported to other countries. This gives companies in the United States, the United Kingdom, and other countries an opportunity to gain high-quality goods that they can resell in stores.

Coffee and cocoa are two very popular goods exported from Indonesia to many countries. Seafood is also often exported from Indonesia, due to the high-quality fish that the country can offer. There are several spices and medicinal herbs that Indonesians grow locally – some of these exported. 

Additionally, below are a few other categories of products that made in Indonesia: 

• Electrical machinery and equipment
• Machinery
• Electronics including computers
• Iron and steel goods 
• Gems and precious metals
• Cut and sew clothing

Raw materials are often not provided as export items from Indonesia, apart from some of the homegrown items. Thus, businesses that are looking to partner up with a manufacturing plant in Indonesia need to understand that products need to be made locally in Indonesia before exporting. 

Companies can sign an OEM or ODM manufacturing contract with some of the factories in Indonesia. In such a case, the factory will provide the raw materials and follow instructions for a specific design provided by the business owner. This yields custom items that the company wants to sell in their local country. These products are branded often according to the company’s corporate identity graphics. 

Conclusion

Many people see Indonesia as a country that is still growing. Over the last 50 years, we have seen a significant improvement in the Indonesian economy, which has allowed the country to explore new manufacturing opportunities. In turn, this offers businesses in other countries an opportunity to take advantage of these manufacturing plants, often providing a lower price on products the brand wishes to sell.