Product License Holder in Indonesia: A Case Study in Seamless F&B Expansion

Expanding into Indonesia’s food and beverage sector requires strict adherence to local laws. Every F&B product must be registered with Indonesia’s National Agency for Drug and Food Control (BPOM). In addition, a local legal entity must act as the official product license holder in Indonesia to complete this registration. 

To meet these requirements and ensure a smooth entry, one international F&B company engaged InCorp Indonesia, a reputable product license holder, as its license holder. This partnership allowed the company to focus on growth while ensuring full regulatory compliance. 

The Challenge 

Entering a new market like Indonesia presents numerous regulatory and operational challenges. For this company, the key hurdles included: 

• Managing the registration of dozens of food and beverage products, each requiring unique documentation. 
• Understanding and complying with BPOM’s stringent regulations and evolving processes. 
• Coordinating import logistics for products manufactured in Thailand. 
• Maintaining flexibility to appoint multiple distributors without tying regulatory ownership to a commercial partner. 

The company needed a fast, reliable, and secure registration pathway that wouldn’t compromise future distribution strategies. InCorp Indonesia provided this by leveraging its extensive experience and strong relationships with regulatory bodies in Indonesia. 

Our Approach 

InCorp was selected as the product license holder in Indonesia, responsible for the complete management of the registration and import process. The partnership included: 

• F&B Product Registration under InCorp’s Local License: Ensuring legal market entry under an independent, neutral entity. 
• Import Assistance: Managing the regulatory documentation required for shipments from Thailand. 
• Surveyor Report Coordination: Supporting the generation of necessary product and facility reports. 
• Import Notification Letters: Enabling the legal importation of food products. 

The project was managed directly by the company’s regulatory, legal, and regional leadership across Southeast Asia to ensure alignment and rapid approvals. InCorp’s expertise in Indonesian regulations and its commitment to fast, responsive communication gave them the confidence to move forward, saving time and ensuring a smooth process.

The Results 

The partnership achieved significant milestones, including: 

• 37 food and beverage products successfully registered under InCorp Indonesia 
• The expansion pipeline grew from 19 to 49 products 
• Regular importation from Thailand into Indonesia is now underway 

By having InCorp as its product license holder in Indonesia, the company gained the ability to work with multiple distributors while keeping its product registrations independent and secure. This structure gives the company a sense of empowerment, greater control, and flexibility in managing local distribution without regulatory risk, enabling it to expand its market. 

Long-Term Benefits 

The strategic advantages extended beyond mere compliance; this collaboration provided benefits that went beyond the initial act of registration, instilling confidence in the company’s long-term success. 

• Product Safety and Independence: Registrations are held securely with InCorp Indonesia to avoid commercial entanglements.  
• Distributor Flexibility: The company can freely appoint and manage multiple local distributors.  
• Market Readiness: A strong compliance foundation supports future decisions on establishing their own Indonesian legal entity.

Why a Product License Holder in Indonesia is Critical 

For any foreign food and beverage brand, appointing the right product license holder in Indonesia is a strategic decision. Reasons include: 

• Mandatory BPOM Registration: No product can legally be sold without a valid registration. 
• Need for A Local Entity: Only Indonesian-registered businesses can apply for and hold BPOM product licenses. 
• Complex Documentation: BPOM requires detailed submissions, including labeling in Bahasa Indonesia, halal certificates, and manufacturing details. 
• Import Logistics: Without proper documentation and SKI approvals, products can be delayed or rejected at customs. 
• Ongoing Compliance: Registration is not a one-time task. Products must be renewed and updated as regulations evolve. 

Tips for Choosing a Product License Holder in Indonesia 

When entering Indonesia’s F&B sector, look for a license holder who offers: 

• Proven Regulatory Expertise: Experience with BPOM and food product compliance. 
• Neutral Business Model: Independent from distribution interests. 
• Fast Processing and Communication: To ensure registrations move quickly and smoothly. 
• Scalable Support: Able to handle both initial registration and ongoing updates. 
• Post-Market Assistance: Supporting recalls, label changes, and regulatory updates. 
• Halal Certification Guidance: Especially valuable in Indonesia’s Muslim-majority market. 

Market Opportunities for F&B Brands in Indonesia 

Indonesia is Southeast Asia’s largest consumer market, with over 270 million people and a growing middle class. The F&B sector is expanding rapidly, driven by increasing demand for imported goods, health-conscious products, and international brands. Trends include: 

• Rising demand for packaged and ready-to-eat products. 
• Growth in online grocery and modern retail channels. 
• Increased interest in plant-based, organic, and functional foods. 

Entering this market with the support of a compliant product license holder in Indonesia ensures that brands are well-positioned to capitalize on these trends legally and efficiently.

Clear Paths to Product Registration in Indonesia

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Conclusion 

Securing the right product license holder in Indonesia is a cornerstone of any successful F&B market entry strategy. With a compliant structure, regulatory oversight, and distribution flexibility, your business can thrive in Indonesia’s competitive, growing consumer landscape. 

If you’re planning to expand your food and beverage operations into Indonesia, take the first step by engaging a reliable partner who understands the regulatory landscape. 

For tailored support and expert guidance on your market entry, fill out the form below and learn how to navigate product registration and licensing in Indonesia confidently.

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