For its vast population with relatively good purchasing power, Indonesia has been one of the most targeted countries for export. Recent studies show that in the next decade, Indonesia is expected to be in the top 5 or even 3 of the greatest market in Asia-Pacific.
However, because of the massive flow of imported goods to Indonesia in the last 5 years—especially after the booming of online shopping—the government of Indonesia has issued stricter regulations to protect its citizens.
You might want to check: Reasons to Register Cosmetic Products Line You’re Selling in Indonesia
This is particularly for goods that is directly consumed or utilized by consumers, such as food, skin-care products, drugs, and cosmetics. In short, only registered importers with legal certifications from the government of Indonesia are able to export their products to the country.
In this article, we will primarily discuss about the regulations of exporting cosmetics and skin-care products to Indonesia based on the latest law issued by the government of Indonesia.
Establishing Connection with Local Agent or Representative. To be able to export cosmetics and skin-care products, The Government of Indonesia makes a new policy that the imported company should have a local agent to represent the company’s existence in Indonesia. This local agent will then help the company to obtain an import license. This import license is a must in order to bring the company’s products into Indonesian market. Without the presence of the local agent, it is impossible to register your company under the list of certified import company.
The next step is the local agent should also obtain a distributor permit which enables them to receive the products from the source company. The agent will then be called as the official distributor of your products. In the past, citizens of Indonesia could privately buy cosmetics or skin-care products directly to the company or its distributors overseas. He or she then could sell the products and cut the distribution channels so that the products they sold were cheaper than those sold by the official distributor. However, under the new rule, this action is considered illegal. Strict rule is applied for cosmetics and skin-care products because there are overwhelming faux products available in the market. Under the new law, it is expected that only registered products imported by registered companies are able to enter Indonesian market.
Cosmetics and skin-care products are under the category of drugs and therefore, every company who wants to export those products to Indonesia must be registered by the agency that is called as BPOM in Indonesia. Each product must be registered separately and the BPOM will issue a notification along with a code or number that must be printed in each of the product’s packaging. The BPOM registration number is valid until 3 years and the company can extend the permit afterwards. However, there is a rule that to keep it valid until 3 years, the imported company should import the product every 6 months.
Again, in terms of consumer goods, specific standards must be met by the import company. Every product entering Indonesian market should follow the standardizations that the government has set, including some tests that the product should go through, the production process, specific labeling techniques and requirements, as well as packaging method. All ingredients and product descriptions stated on the packaging should also be translated into proper and standardized Indonesian. Any misleading information in the package and in advertising will be considered as violating Indonesian law.
Generally, the import duties for cosmetic and skin-care products are 10 percent.
By following the above step-by-step guidance, you are one step closer to be a certified cosmetic and skin-care importer in Indonesia. A consideration should be put in mind that those regulations are made to protect the Indonesian consumers and local cosmetic and skin-care industries. There are approximately 700 cosmetic and skin-care companies in all over Indonesia, which make the competition tighter. To be able to survive in Indonesian market, building trust to both the government as the policy maker and the customers as your target market is a must.
Read also: 4 Mistakes You Should Know in Cosmetic Products Registration in Indonesia
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