News / Carriers switch focus to Indonesian shipping services after tariff reduction

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Intra-Asia carriers are paying more attention to Indonesia as exports exceed imports and South-east Asia’s largest economy continues to post trade surpluses.

From January to July, Indonesia booked a trade surplus of $23.65bn, and the US reducing reciprocal tariffs on its imports to 19%, from a proposed 32%, bodes well for its exports.

In comparison, Vietnam and Bangladesh, which like Indonesia, are also textile manufacturing centres, have higher tariffs on their exports to the US.

Fewer imports have enabled Indonesia to achieve trade surpluses for nearly five years. In 2024, the surplus stood at $31.04bn, down from $36.89bn, due to lower exports to China and a slowdown in export growth.

Nonetheless, Indonesian terminal operator PT Pelindo Terminal Petikemas (SPTP) reported a 10% year-on-year growth in container throughput, at nearly 4m teu last year. Exports were 2.06m teu, a near 11% increase from 1.86m in 2023.

Lured by cargo volumes, Singapore-based SeaLead Shipping and South Korean feeder operator CK Line will join CMA CGM’s intra-Asia arm CNC’s KI8 service connecting Indonesia with South Korea, central China and Vietnam.

KI8 will allow CNC to offer direct sailings from South Korea to Indonesia, and Alphaliner said the service would complement CNC’s Jakarta and Surabaya link to Busan via its KCI loop, provided through slots on the Indonesia to China and South Korea segment of a joint service by ONE, TS Lines, Namsung Shipping and SITC.

For SeaLead, which is marketing the service as SEA7, this will be its only dedicated service between China, Indonesia and Vietnam. CK Line is marketing the service as CIK, and this will be its second loop between South Korea and Indonesia, adding to the carrier’s existing slots participation on the South Korea-Indonesia segment of HMM’s South Korea-China-Thailand-Indonesia ICN service.

A fortnight ago, CK Line’s compatriot peer, Sinokor moved to a bigger office to Jakarta’s business district to better cultivate relations with Indonesian exporters. Sinokor and subsidiary Heung-A Line operate four South Korea-Indonesia services, moving 10,000 teu a week.

In similar fashion, on 29 August, CMA CGM opened a new office on the Indonesian island of Batam and launched a Batam-Singapore Xpress (BSX) service.

Batam-Singapore is a key route for shipping electronics, solar panels and general cargo, with onward destinations transhipped over Singapore.