Indonesian Vegetable Exports: FOB vs CIF Guide 2025

A practical, step-by-step system to convert FOB to CIF for Indonesian fresh vegetable exports in 2025. Includes exact cost components for reefer containers, simple insurance math, and a worked example to Dubai from a $1.20/kg FOB base.

If you sell Indonesian vegetables on FOB today and want to win more buyers on CIF in 2025, you don’t need a finance degree. You need a clean lane file, the right reefer cost components, and a simple insurance method you can run in minutes. This is the system we use when quoting Japanese Cucumber (Kyuri), Tomatoes, Carrots (Fresh Export Grade) and other lines to Asia and the Middle East.

The three pillars of FOB-to-CIF pricing that actually work

Know what your FOB really includes. In Indonesia, “FOB” sometimes excludes a few origin reefer extras. Under Incoterms 2020, FOB means you deliver on board the buyer’s nominated vessel. Practically, that usually means export clearance, port THC, VGM/EDI, and terminal reefer handling are on you. But we still see quotes where PTI or plug-in ends up outside the FOB. Confirm before you calculate.
Add the reefer-specific costs you’ll carry under CIF (or CFR). The obvious one is ocean freight. The less obvious ones are the nickel-and-dime charges that move your per-kg by 3–8 cents: PTI, plug-in, reefer monitoring, genset trucking surcharge, and line documentation. They matter.
Use a simple, repeatable insurance method. CIF requires you to buy cargo insurance. Incoterms 2020 sets a minimum of Institute Cargo Clauses (C), but most vegetable buyers ask for ICC(A) with Reefer Breakdown. Price it consistently so you don’t debate every shipment.

Takeaway: Lock these three and you can turn any solid FOB into a defensible CIF in under 10 minutes.

Weeks 1–2: Build your lane file and validate numbers

Here’s the groundwork we recommend for a fresh vegetable exporter using 20’ or 40’ reefers out of Tanjung Priok or Tanjung Perak.

Ocean freight benchmarks. For 2025, typical 20’ reefer all-in spot from Jakarta to Jebel Ali is often in the USD 2,100–2,700 range. To Singapore, USD 700–1,100. To Hong Kong, USD 1,200–1,800. Seasonality and congestion can swing this. Always log a low-mid-high for each lane.
Origin charges you might need to add if not in your FOB:
- port THC (reefer export): USD 180–260 per 20’, 260–340 per 40’.
- PTI (pre-trip inspection): USD 30–70 per box.
- Plug-in electricity at terminal: USD 15–30 per day. Count from gate-in to loading, typically 1–3 days if you time it well.
- Reefer monitoring at terminal: USD 10–25.
- VGM/EDI / line doc: USD 15–35.
- Genset trucking surcharge in Jabodetabek: USD 40–90 per trip, depending on distance and dwell. If your cold store is near port with grid power, you might avoid genset except for contingency.
Payload and utilization. A 20’ reefer realistically carries 12–13.5 metric tons of fresh veg once you account for packaging and weight limits. For high-volume items like Purple Eggplant or Red Cayenne Pepper (Fresh Red Cayenne Chili) you’ll often land around 12.0–12.8t net. Record your typical net weights by product so your per-kg math is consistent.

What’s interesting is how many quotes fall apart because the team never agreed on net kilos or who’s paying for plug-in. Sort these now and life gets easier.

Weeks 3–6: Quote, test, and tighten your CIF per-kg

Run this simple sequence every time you convert FOB to CIF.

Step 1. Confirm FOB scope. Does your FOB already include THC, PTI, plug-in up to loading? If yes, great. If not, add them as origin extras in your CIF build.

Step 2. Build CFR. CFR = FOB + ocean freight + any origin extras you must carry that were not in the FOB. Don’t include destination THC or local delivery. Under CIF/CFR the buyer pays destination port charges.

Step 3. Add CIF insurance the easy way. A practical method for vegetables:

Coverage: ICC(A) + Reefer Breakdown extension when possible. If the buyer accepts minimum CIF, ICC(C) is the Incoterms 2020 default. For fresh veg, we prefer ICC(A) because it covers more transit risks.
Premium rate: use a working band. In our experience, fresh veg lanes in Asia–Middle East on ICC(A) price at 0.35–0.70% of the insured value. ICC(C) can be ~0.2–0.4%. Get a lane-specific quote, then keep a standard rate in your calculator.
Formula: Insurers usually rate on 110% of the CFR value. Insurance premium I = rate × 1.10 × CFR. CIF = CFR + I.
Shortcut: If your rate is 0.5% on 110% of CFR, the insurance uplift is 0.0055 × CFR. So CIF ≈ CFR × 1.0055.

Step 4. Convert to per kg. CIF per kg = CIF container value ÷ net kg loaded.

Takeaway: Lock a standard insurance rate per lane and you’ll quote in minutes, not hours.

Weeks 7–12: Scale and optimize

Tighten dwell. Every extra day of plug-in adds cents per kg. We target gate-in to vessel load under 48 hours.
Book intelligently. Some carriers include PTI in reefer tariff. Ask. That can save USD 30–70 per box and removes admin.
Compare CFR vs CIF. If your buyer has an annual global cargo policy, CFR can be cleaner and faster to close. You drop the insurance step, and buyers often prefer their own claims process.
Product-lane fit. Dense items like Beetroot (Fresh Export Grade) or Premium Frozen Edamame utilize a reefer’s payload differently than delicate Baby Romaine (Baby Romaine Lettuce). Adjust expected net kilos and quote with confidence.

Takeaway: The operational small wins compound into 3–6% better landed price over a quarter.

Quick answers to the questions we get most

How do I convert an FOB price to a CIF price for Indonesian fresh vegetables in 2025?

Start with your true FOB (including origin THC and required origin reefer handling). Add ocean freight and any origin extras not already in FOB to get CFR. Then add insurance using I = rate × 1.10 × CFR. CIF = CFR + I.

What extra costs do I add for a reefer container when moving from FOB to CIF?

Always: ocean freight and insurance.
Sometimes (if not in your FOB): PTI, terminal plug-in, reefer monitoring, genset trucking surcharge, and line documentation. In Indonesia, we generally include these in FOB, but practices vary by forwarder and port.

Do Indonesian port THC and reefer plug-in fees belong in my CIF quote or are they on the buyer under FOB?

Under Incoterms 2020, FOB seller covers origin costs to deliver on board. That typically includes THC and terminal plug-in up to loading. So those costs should already live inside your FOB. Under CIF/CFR, they’re still your cost as origin charges. Destination THC is for the buyer.

What insurance rate and coverage should I use for CIF vegetables and how do I calculate the premium?

Use ICC(A) with Reefer Breakdown where possible. If a buyer insists on minimum CIF, ICC(C) meets Incoterms but is very limited. Premium math: pick a working rate per lane (say 0.5%). Premium = 0.5% × 1.10 × CFR. Add it to CFR to get CIF. If the buyer requests a specific insurer or clause, re-rate accordingly.

How do I turn an FOB price per kg into a CIF price per kg for a 20’ reefer shipment?

Multiply your FOB per kg by net kg to get FOB container value.
Add ocean freight and any origin extras not in your FOB to get CFR.
Add insurance (rate × 1.10 × CFR) to get CIF.
Divide CIF by net kg for CIF per kg.

Is CFR better than CIF for vegetable exporters when buyers handle their own insurance?

Often yes. If your buyer has an annual marine policy, CFR keeps your quote cleaner and avoids back-and-forth on clauses. We use CIF when buyers want a single price and we can secure competitive insurance. If insurance markets harden or claims become frequent, CFR usually wins.

What’s a realistic example of CIF to Dubai for a reefer load if my FOB is $1.20/kg?

Assumptions: 20’ reefer, 12,500 kg net. FOB per kg = USD 1.20. Ocean freight JKT–Jebel Ali = USD 2,400. Insurance at 0.5% on 110% of CFR. FOB already includes origin THC/PTI/plug-in.

FOB container value = 12,500 × 1.20 = USD 15,000.
CFR = 15,000 + 2,400 = USD 17,400.
Insurance = 0.0055 × 17,400 = USD 95.70.
CIF container = USD 17,495.70.
CIF per kg ≈ 17,495.70 ÷ 12,500 = USD 1.40/kg. If your FOB didn’t include some origin reefer extras and you add, say, USD 205 for PTI, plug-in, monitoring, genset, and docs, CIF per kg would land near USD 1.42.

Common mistakes that kill CIF quotes (and how to avoid them)

Counting gross, not net. Quote on saleable net kg, not container payload. For lettuce and leaf lines like Loloroso (Red Lettuce), packaging weight and headroom for airflow reduce net kilos.
Underestimating dwell. One extra terminal day can add USD 20–30 in plug-in and monitoring. Gate-in with time to spare, not days.
Skipping insurance clauses. ICC(A) without Reefer Breakdown can still leave you exposed for temperature deviations. Ask your broker to endorse reefer breakdown and temperature variation where available.
Mixing destination charges into CIF. CIF ends at the first discharge port rail. Destination THC and local delivery belong to the buyer unless you’re quoting DAP/DDP.

Resources and next steps

If you need fresh lane numbers for 2025 reefer ocean freight Indonesia to the Middle East or ASEAN, or you want us to review your CIF calculator for a specific vegetable line, Contact us on whatsapp. And if you’re validating demand, see what we’re shipping now across fresh and frozen lines: View our products.

In our experience, exporters who standardize the numbers above quote faster, win trust with buyers, and protect margin. The math is simple. The discipline is what sets you apart.