Before we discuss about the process of importing and registering cosmetic products in Indonesia, here are few important points to note.
The registration of cosmetics is regulated by National Agency of Food and Drug Control also known as Badan Pengawas Obat dan Makanan (BPOM). All cosmetics, which also include personal care and toiletries, must be registered with BPOM first before importing and selling in Indonesia.
Unlike the registration of food and beverage products, each separate variant of cosmetics must be registered as a separate product. For instance, if a cosmetic product comes in multiple colors, each color will be separately registered as a unique product.
Some interesting facts about cosmetics in Indonesia
- Indonesians are becoming increasingly aware of their well-being and there is rising demand for beauty & personal care products in Indonesia.
- Indonesia’s female population now numbers over 130 million
- There are 74 million Middle-Class and Affluent Consumers (MAC) who are increasingly wearing cosmetic and skin care products including men specially in Urban areas.
- Indonesia’s cosmetic industry remains attractive for foreign and domestic investors.
Who can register cosmetic products in Indonesia?
Only legal entities established in Indonesia are allowed to import the cosmetics according to the regulation issued by BPOM. MAM Corporate Solutions can help you to incorporate following most common legal entities:
1) Local Indonesian Company (PT Local)
Local Indonesian Company can import and distribute/sell the cosmetics products without any restriction from BPOM. MAM Corporate Solutions can help you to incorporate Local Indonesian Company (PT Local). Click here for more details.
2) Foreign Investment Company (PT PMA)
If PT PMA only wants to import the cosmetics to Indonesia, foreigners are allowed to have 100% shareholding of the company. In such a case, distribution and sale of cosmetics is done by a local partner. If you do not have a local distribution partner, MAM Corporate Solutions can help.
However, if foreign investors intend to import as well as distribute/sell the cosmetics in Indonesia, the foreign shareholding allowed is limited to 67% and remaining shares must be held by a local Indonesian. MAM Corporate Solutions can help you to incorporate a Foreign Investment Company (PT PMA). Click here for more details.
Complete steps for registration of cosmetic products in Indonesia
After setting up the legal entity in Indonesia and before you start registering your products, you have to apply for username and password to get access to BPOM’s online system. For that, you need to submit an online application together with the necessary supporting documents, including:
- Documents of incorporation.
- Import License (API-U).
- Copy of the cosmetic manufacturer’s Good Manufacturing Process (GMP) certificate, legalized by the Indonesian Embassy of the manufacturer’s state.
- Certificate of Free Sales, issued by the governing body of the Principal’s location, legalized by the Indonesian Embassy.
- Letter of Authorization from the Principal to the applicant.
Once you have gained access to BPOM, you can start registering your cosmetic products in Indonesia. The process of registering the products is as follows:
For each product you want to import, you need to request a separate notification as every stock keeping unit is an individual product in Indonesia. In other words, each product with variations in color, size, etc. needs to get its own notification.
Fortunately, this is all done online, by uploading the information of the cosmetic products, such as name, ingredients, functions of the ingredients, packaging, etc.
The second step of cosmetic product registration in Indonesia is the payment for fee to BPOM for each product. The fee depends on whether product is produced in one of ASEAN countries or it is produced in one of countries other than in ASEAN. The fee is as follows:
- IDR 1,500,000 per product when produced outside of ASEAN
- IDR 500,000 per product when made in ASEAN countries
If BPOM rejects the product registration, this fee is non-refundable.
If your products meet the requirements and your registration succeeds, you will receive a notification from the BPOM. BPOM will issue the notification number within 14 working days after the validation of the payment.
However, note that once you receive the notification, you must import each of the units within 6 months to keep your product registration valid. Also, you have to comply with further requirements such as preparing your product information database and labelling your products correctly before selling them in Indonesia.
The BPOM notification will be valid for three years and is extendable after that.
Labelling requirements of cosmetic products in Indonesia
When you sell your cosmetic products in Indonesia, the labels of the products need to be in Indonesian and must at least include the following information:
- Name of the product
- Product functions
- Application method
- Name of the manufacturer
- Name and address of the importer
- Batch number
- Net weight
- Expiration date
- Any warnings regarding the ingredients
How MAM Corporate Solutions can help?
Its critical to consult market-entry specialists like MAM Corporate Solutions to ensure smooth process from start to finish. We have years of experience and we are always up-to-date with latest regulations to ensure no costly mistakes are made at any given time. At MAM Corporate Solutions, we help clients with registering the legal entity, application for import licenses, registration of cosmetics with BPOM and distribution & sale of products in Indonesia.
Contact MAM Corporate Solutions
If you need help to establish a legal entity and import cosmetics in Indonesia, Contact us here or provide below as much detail about your inquiry as possible to receive the most relevant response.