How to Get a B3 Waste License for Fragrance Production in Indonesia

As Indonesia’s fragrance industry grows rapidly, more businesses are opening manufacturing facilities to meet rising demand. However, fragrance production often involves handling hazardous substances classified under Indonesian law as B3 waste (Bahan Berbahaya dan Beracun). 

Fragrance manufacturers must obtain a B3 waste permit and adopt the proper management practices to protect the environment and ensure legal compliance. This guide explains the importance of licensing, the risks of non-compliance, and how to navigate the process efficiently. 

Fragrance Industry Market in Indonesia 

Indonesia’s fragrance market is poised to generate USD 457.81 million in revenue by 2025, with a projected CAGR of 3.35% through 2030. While the United States leads globally with USD 9 billion in revenue, Indonesia’s market is steadily growing, with 53% of sales coming from non-luxury products.  

This growth presents a promising opportunity for fragrance manufacturers in Indonesia. Revenue is estimated at USD 1.62 per capita. Demand for locally inspired, traditional scents is also rising, reflecting consumers’ more profound cultural appreciation. 

Key Benefits for Fragrance Manufacturers 

Indonesia offers significant advantages for fragrance manufacturers looking to scale efficiently while tapping into a fast-growing regional market. These advantages and the supportive investment climate for the beauty and personal care industry provide a strong foundation for your business. 

• Lower production costs due to affordable labor and materials 
• Strategic location for Southeast Asia distribution 
• Rising local demand driven by younger demographics and lifestyle trends 
• Supportive investment climate for the beauty and personal care industry 

With such strong potential, businesses must prioritize regulatory compliance, particularly regarding B3 waste management. This is not just a legal requirement but a crucial step in ensuring the sustainability and growth of fragrance manufacturing businesses.

READ MORE:

• A Guide to B3 Waste Permit for Commercial Facilities in Indonesia
• Exploring Opportunities in Indonesia’s Beauty Industry
• Product Registration in Indonesia: How to Register Products via BPOM

Why Fragrance Manufacturers Need a B3 Waste License 

Fragrance manufacturing involves various chemicals—alcohols, essential oils, and solvents—that can create hazardous byproducts. These fall under B3 waste, which is regulated by MOEF Regulation No. 9 of 2024. Common B3 waste in fragrance production, such as: 

• Spilled or unused solvents 
• Expired raw materials 
• Contaminated cleaning water 

Businesses must obtain a B3 waste permit to generate, store, or dispose of this waste legally. Non-compliance can lead to legal consequences such as fines, financial implications due to cleanup costs, and operational disruptions, including temporary or permanent closure.

The Risks of Not Having a B3 Waste License 

Running a fragrance manufacturing business without a B3 waste license can lead to serious problems. These issues go beyond legal trouble; they can also hurt the environment, your finances, and your brand. 

Legal Penalties 

In Indonesia, handling B3 waste without a permit is against the law. If caught, your business could face fines, legal sanctions, and temporary or permanent closure. Getting the correct waste permit helps avoid these risks. 

Environmental Harm 

Improper B3 waste management can damage nature. If hazardous materials are thrown away carelessly, they can pollute soil, water, and air—harming both people and wildlife. 

Damaged Reputation 

Customers and partners care about how brands treat the environment. If your business is linked to illegal waste disposal, it can lead to loss of trust, bad press, and fewer business opportunities. 

Expensive Cleanup and Recovery Costs 

If there’s an accident or environmental damage, the cleanup costs can be huge, often much more than the cost of getting a B3 waste permit in the first place. 

Step-by-Step Process of Getting a B3 Waste License in Indonesia

Applying for a B3 waste permit can be complex. For fragrance manufacturers, the process includes regulatory coordination and ongoing compliance. Key stages of the process include: 

• Step 1: Complete the official application form 
• Step 2: Submit your documents to the relevant environmental authority 
• Step 3: Pay the required government fee 
• Step 4: Cooperate during site inspection and compliance review 
• Step 5: Obtain the official B3 waste license 

After obtaining the license, you will need to ensure ongoing compliance, such as: 

• Maintain an updated waste management system 
• Conduct routine facility inspections 
• Submit annual reports to the environmental agency 

Fulfilling post-license obligations can still result in penalties. That’s why most businesses work with professional consultants who can provide expert guidance, ensure compliance, and help avoid potential penalties.

Simplify Fragrance Manufacturing Compliance with InCorp 

Handling the B3 waste licensing process alone can be overwhelming—especially for new entrants to the Indonesian market. At InCorp Indonesia (an Ascentium Company), we support fragrance businesses by: 

• Managing the full B3 permit process 
• Ensuring ongoing waste compliance 
• Assisting with perfume product registration through BPOM and local authorities 

Let InCorp handle the paperwork so you can focus on scaling your fragrance business confidently and legally. Fill out the form below to get started.

Frequently Asked Questions