How to Register a Product and Get It Halal Certified in Indonesia: The Shortcuts

Regarding the world’s most popular and profitable investment destinations, Indonesia will likely be at the top, especially when your business involves distributing and selling products. To be able to distribute and sell products in Indonesia, you need to familiarise yourself with what is called product registration in Indonesia.

But before we discuss how to register a product in Indonesia, it would be helpful to understand why engaging in the distribution and selling of products in Indonesia is worthwhile.

Indonesia takes pride in being the 10th largest economy in the world in terms of purchasing power, not to mention that the archipelagic country is the largest economy in Southeast Asia. Furthermore, the government also boasts a growing middle-class population, with the majority fond of imported products.

As seen on the website of the Indonesian Food and Drug Authority (BPOM), more than 25,000 cosmetic products were registered in the first four months of 2020, followed by food and beverages with over 18,000 registered products, medicines (including traditional ones) with over 1,800 registered products, and health supplements with over 350 registered products.

Now that you are intrigued about whether you can be the next successful foreign entrepreneur in Indonesia, you can. As long as you are on the right track, starting a business by registering your products in Indonesia is seamless and hassle-free.

Our product registration specialists have prepared a handy guide that contains all the essentials you need to know, all in one place.

Product Registration in Indonesia: The Shortcuts

In Indonesia, the products that can be registered include the following:

Cosmetics

To ensure a seamless product registration process in Indonesia, it would be best to learn about the procedure, mistakes commonly made by foreign entrepreneurs, regulations of cosmetic import into Indonesia, contamination limits, and QR codes, among others.

• Process for cosmetic product registration in Indonesia
• Four mistakes frequently made during cosmetic product registration
• The latest regulation on importing cosmetics into Indonesia
• Everything to know about contamination in cosmetic products in Indonesia
• QR codes in cosmetic products

Food and Beverages

Here are the articles that will help you understand more about the registration process for food and beverage products:

• Registering food and beverages in Indonesia
• Newest regulation update on food packaging
• How to import raw materials of food and beverages into Indonesia
• QR code in food and beverage products

Medicines and Health Supplements

If you are interested in distributing and selling medicines or health supplements in Indonesia, the following articles will answer your questions:

• Registering supplements in Indonesia
• Contamination limit in health supplements

Household Products

You can also import, distribute, and sell household products besides cosmetics, food and beverages, medicines, and health supplements. Read the following articles to know more:

• Registering household products in Indonesia
• Imported household product registration in Indonesia

Medical Devices

Indonesia is one of the fastest-growing pharmaceutical markets in Asia. The pharmaceutical market is claimed to reach USD 10.11 billion by 2021. Players in the pharmaceutical sector, particularly exporters of medical devices, are recommended to gain insights through reading these articles:

• An overview of the pharmaceutical sector in Indonesia
• Registering medical devices in Indonesia

Other Essentials

• Securing an import license in Indonesia via the Online Single Submission (OSS) system
• SNI license and product registration in Indonesia

Setting up a PT PMA for Product Registration in Indonesia

Before you can proceed with registering any product and securing an import license in Indonesia, you must establish a legal entity. Only after a company is set up can it continue to the next stage, product registration.

As a foreign investor, the best legal entity to establish is a foreign-owned company, also known as PT PMA in Indonesia. The foreign ownership of a PT PMA ranges from 1 to 100%, depending on the business classification. Incorporating a PT PMA takes about 1 to 1.5 months, and it requires a minimum investment of IDR 10 billion (with a minimum paid-up capital of IDR 10 billion as well).

Further information on PT PMA establishment can be found below:

• Registering a PT PMA in Indonesia
• Shareholders, commissioners, and directors of a PT PMA
• How to start a business in Indonesia in 2020

If You Do Not Want to Establish a PT PMA

To some foreign entrepreneurs, one month may seem like a long time to start a business. Therefore, they are looking for options other than establishing a PT PMA.

In Indonesia, foreign investors can start business operations immediately without setting up a PT PMA. Without the establishment of a PT PMA, there is no need to secure an import license either.

Product License Holder

Foreign entrepreneurs unwilling to incorporate a company in Indonesia can register their products via a legally registered product license holder.

• Everything to know about the product license holder in Indonesia

Importer of Record

With an Importer of Record (IOR) or Undername Importer, you would not have to worry about obtaining an import license in Indonesia. Required documents and other requirements for importing goods into Indonesia will be managed and handled by this legally registered agent with an import license.

• Export to Indonesia without an import license
• How to use an undername importer in Indonesia

Halal Certification after Product Registration in Indonesia

The halal industry in Indonesia has been seen as a gold mine for many investors. Approximately 14 percent of the total Muslim population in the world can be found in Indonesia. Furthermore, roughly 88 percent of Indonesian citizens are Muslims.

It would be a loss if you did not consider getting your products halal certified. According to Indonesian Law No. 6 Year 2023, halal certification is valid as long as there’s no change in the ingredient or process.

The following guidance will give you insights into the halal landscape and certification in Indonesia:

• Halal industry: the future of Indonesia’s economy
• It is not too late to secure halal certification in Indonesia
• Latest regulations on halal products
• Further update on the procedure for securing halal certificates in Indonesia

Product Registration in Indonesia with InCorp Indonesia

As a leading consulting company in Indonesia, InCorp Indonesia (an Ascentium Company) provides one-stop services to make it easy and convenient for you. Whether you need help with product registration, halal certification, or company establishment in Indonesia, we provide professional guidance and assistance.

Please fill in the form below to discuss your business needs with our experts. They will respond to your message shortly.