| Summary: | Logistics industry is an overseas business which the revenue always distributed to thousands of players and might only small portions goes to each player. Revenue sharing from the business is determined by the Incoterm-2000 which defining the respective roles and responsibilities of the buyer and seller in the arrangement of transportation and other obligations. Most of Indonesian logistic companies run the business under FOB (free on board) Incoterms-2000. The FOB limits business opportunity only within Indonesia, more specifically from the "origin of the commodity" to the "loading port" within country. Research has evaluatedother types of Incoterms-2000 which include the arrangement of delivery from the origin to the overseas customer at "destination place". Those include DDU (delivery duty unpaid) and DDP (delivery duty paid) models. The research reviewed trade regulation in Indonesia and the Incoterms-2000to develop the export transaction model and applied into dynamic model to compare the performance of the FOB, DDU and DDP. The predominant export destination (Japan) and its commodity (textile) were used in the model. The method used in this research were in-depth interview to some selected Indonesian logistics companies and SWOT analysis to formulate strategic recommendations. The result exposes that DDU and DDP models have advantages over FOB. With FOB, national forwarders only obtain 15.38%of total revenue, while with DDU and DDP could get extra revenue from 84.62% up to 100%. The implementation of DDU and DDP in Indonesia faces the challenges such as national logistics companies capacity and the technical capability of national seaports to ensure efficient and effective delivery system.
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