Dimerco offers alternative to U.S.-China trade with Indonesia partnership

Taiwan-based logistics company Dimerco is helping its trans-Pacific customers avoid extra costs from protectionist trade policies by offering its services in Batam, Indonesia, which operates under a Free Trade Zone (FTZ).

The deal was struck through a strategic partnership with PT Uniair Indotama Cargo – a member of Dimerco Express Group with a strong Southeast Asian presence.

As an alternative to operating in China, Dimerco utilizes the network of its Indonesia-based partner to offer customers “a window for import and export products, connecting Indonesia with the rest of the world,” Dimerco CEO Edward Lin said.

Shippers and logistics players entangled in the inflamed United States-China supply chain have been looking for refuge from the trade-war since the policies went into effect in July. Dimerco offers services such as forwarding, customs clearance, warehousing, value-added services and last-mile delivery for cross-border customers.

The FTZ in Batam falls under the U.S. trade program, called the Generalized System of Preferences (GSP), meaning it is exempt from import duties, sales tax, value-added tax, tax luxury goods, divergence and customs. The hub’s close proximity to Singapore also means customers can connect to surrounding countries without incurring customs duties or taxes.

With shippers on both sides of the fence facing 25 percent tariffs on various kinds of products, from perishables to steel to tobacco, Air Cargo World expects to see more logistics companies establish their own outposts to accommodate the demand for alternative trade lanes.