The use of undername companies and freight-forwarder to export agricultural commodities from Indonesia
Whole Ginger
Arif Sukmawan
Published Nov 25, 2020
One alternative that is most commonly used by Indonesian suppliers who don't have an export license to export their product overseas is to use the service of undername companies or to partner with freight-forwarder who would provide documents, shipment, and payment transit service for the exporter. So far in 2020, the employment of the undername companies has risen by around 30% of the total export process in Indonesia, as caused by the coronavirus pandemic that has disabled a lot of companies in Indonesia to obtain or extend the export license. There was a certain period in Indonesia where the government export agencies were closed, as caused by the coronavirus pandemic. This type of method is most commonly used by the supplier of areca nuts, turmeric, and ginger, who are mostly local farmers operating in remote regions of Indonesia.
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