Newest Regulation on Exporting Cosmetics to Indonesia

The Latest Regulation on Exporting Cosmetics to Indonesia

InCorp Editorial Team

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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 most significant markets in Asia-Pacific, and many are thinking about exporting their cosmetics to Indonesia.

However, because of the massive flow of imported goods to Indonesia in the last five years—especially after the booming of online shopping—the government of Indonesia has issued stricter regulations to protect its citizens.

This is mainly for goods 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 can export their products to the country.

In this article, we will primarily discuss the regulations for exporting cosmetics and skin-care products to Indonesia based on the latest law issued by the government of Indonesia.

STEP-BY-STEP GUIDELINES—the Initial Actions Importers Should Do

Establishing Connection with Local Agent or Representative. To be able to export cosmetics and skin-care products, The Government of Indonesia made 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 to bring the company’s products into the Indonesian market. Without the presence of a local agent, it is impossible to register your company under the list of certified import companies.

Asking Your Local Agent to Get A Licensed Distributor Permit

The next step is the local agent should also obtain a distributor permit to receive the products from the source company. The agent will then be called the official distributor of your products. In the past, citizens of Indonesia could privately buy cosmetics or skin-care products directly from the company or its distributors overseas.

They 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.

The strict rule is applied for cosmetics and skin-care products because there are overwhelming faux products in the market. Under the new law, it is expected that only registered products imported by registered companies will be able to enter the Indonesian market.

Registering Every Product to the Indonesian Agency for Drugs and Food Control.

Cosmetics and skin-care products are under the category of drugs. Therefore, every company that wants to export those products to Indonesia must be registered by an agency called BPOM in Indonesia. Each product must be registered separately, and the BPOM will issue a notification and a code or number that must be printed on each product’s packaging.

The BPOM registration number is valid for three years, and the company can extend the permit afterward. However, there is a rule to keep it reasonable for three years. The imported company should import the product every six months.

Meeting the National Standard of Indonesia (SNI).

Again, in terms of consumer goods, specific standards must be met by the import company. Every product entering the Indonesian market should follow the government’s standardizations.

The standardizations include some tests that the product should go through, the production process, specific labeling techniques, requirements, and packaging methods. All ingredients and product descriptions on the packaging should also be translated into proper and standardized Indonesian. Any misleading information in the package and advertising will be considered as violating Indonesian law.

Paying the Import Duties.

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 being a certified cosmetic and skin-care importer in Indonesia. Considering that those regulations are made to protect Indonesian consumers, local cosmetic and skin-care industries should be considered.

There are approximately 700 cosmetic and skin-care companies all over Indonesia, which makes the competition tighter. To survive in the Indonesian market, building trust with the government as the policymaker and the customers as your target market is necessary.

Register Your Cosmetic Products with InCorp Indonesia

Contact InCorp for more information regarding Cosmetics Registration in Indonesia by filling out the form below.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

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