Indonesia has made significant progress in reducing poverty rate to below 10% over the past 15 years. The middle class is growing faster than any other groups; there are now at least 52 million economically secure Indonesians, or one fifth of the total population.
The Indonesian middle class has been the key driver of economic growth as the group’s consumption has grown at a rate of 12% per year since 2002 and now accounts for almost half of all household consumption in the country.
The change in spending trends of the middle income group is quite evident. For example, this group spends more on foods that were previously too expensive, attracting them to products that are not traditionally a staple of their diet, such as Westernized foods. In addition, the convenience trend that consumers need to eat quickly and efficiently is reflecting to the Western lifestyle.
With the rise of middle class population, the demand for western and imported foods and beverage has risen strikingly, making the burgeoning Food and Bevarage industry a lucrative investment opportunity. However, international investors must adhere to Indonesian laws, since all imported food and drinks must obtain a permission granted by the Indonesian Food and Drug Control Agency (BPOM) prior to enter the market.
This article will guide you how to successfully through the BPOM certification process, specifically for food and beverage products.
According to the Indonesian Law, BPOM is responsible to protect the public health through the control and supervision of prescription and non-prescription drugs, vaccines, biopharmaceuticals, dietary supplements, food safety, traditional drugs and cosmetics.
That is why every aforementioned products must undergo BPOM certification before entering the Indonesian market. If your product passes the certification process, BPOM will issue the market authorization permit or izin edar.
To obtain it, importers must register their product’s manufacturer from which they are importing before registering the product itself. Based on the risk approach, BPOM will categorize imported goods into the following classes to grant market authorization permits:
|Very Low||Contains few ingredients, no food additive, no animal derivative, and is minimally processed such as pasta, olive oil, frozen vegetables, and others.|
|Low||jam, sausage, instant noodles, cereal, cheese-flavored snacks, crackers, seasoning, fruit juice, other food additives, and others.|
|Medium||Carried out for certain processed food facing a process of sterilization, pasteurization, irradiation, organic, GMO, alcoholic beverages, flavor, foods with claims, such as milk, canned food, cheese, no sugar, gluten and others.|
|High||Certain processed foods for specific target consumers and specific health conditions such as baby food, baby formula, food for pregnant women, special diet foods, etc.|
BPOM certification process consists of several stages; registration of the legal entity, registration of the facility, registration of the product manufacturer, and registration of the product itself. Applicant are required to provide the following documents:
Each document has a specific set of criteria. For a successful BPOM certification, reach out to our consultants (via the form below) for more details.
Only limited liability companies, formed under Indonesian law and holding an import license, are permitted to register items for BPOM certification. However, there are numerous alternative methods available in case one wishes to import items into Indonesia without forming a company.
An Importer of Record is a legal service that permits businesses to import goods into the country via a third-party importer. Cekindo streamlines and expedites the customs clearance procedure as an importer of record. We have significant local expertise and can assist you in following your items’ export/import procedure. You can concentrate on your main business activities without worrying about unnecessary complexity when you have Cekindo as an IOR on your side.
The second option for food and beverage registration in Indonesia is to form a contractual arrangement with a local partner to import and distribute your products. Cekindo can also help you with this procedure as a one-stop shop for market entrance into Indonesia.
Cekindo, for example, aided essential oil goods and wellness solution firms located in Australia in seizing a lucrative potential in the Indonesian market in 2015.
They were eager to import their essential oil goods and food and dietary supplements and have them disseminated in the local market because their primary business was direct selling (multi-level-marketing). So, Cekindo was hired by Young Living as a consultant for their product registration process as well as local partner services. Find the right and trusted local partner with Cekindo.
If you plan to import into Indonesia for your F&B business, you should be aware of the procedures and bureaucratic requirements. Cekindo as an Importer of Record offers an end-to-end import service for a wide variety of items, from medical equipment to cosmetics and food and beverage.
Cekindo registers your company with the least amount of fuss while you focus on the main business aspects. Our consultants can assist you in obtaining the appropriate product registration as well as licenses such as business and import licenses. With our accounting and tax reporting services, we also give competent guidance and ensure you stay on top of all legal compliance.