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

When it comes to the most popular and profitable investment destinations in the world, it is very likely that Indonesia will be on the top of the list, 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 dive further into how you can register a product in Indonesia, it would be nice to know the reasons engaging in the distribution and selling of products in Indonesia is worth it.

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 country also boasts a growing middle-class population, with the majority of them are fond of imported products.

As seen on the website of The Indonesian Food and Drug Authority (BPOM), just in the first four months of 2020, there have been more than 25,000 cosmetic products registered, 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 first getting your products registered 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 limit and QR code, among others.

Food and Beverages

Here are the articles that will help you understand more about the registration process for 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:

Household Products

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

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:

Other Essentials

Setting up a PT PMA for Product Registration in Indonesia

Before you can proceed with registering any product and secure an import license in Indonesia, you are required to establish a legal entity. Only after a company is set up, it is allowed to continue to the next stage, which is 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%, and this depends on the business classification. It takes about 1 to 1.5 months to incorporate a PT PMA and it requires a minimum investment of IDR 10 billion (with the paid-up capital of IDR 2.5 billion).

Further information on PT PMA establishment can be found below:

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 the establishment of a PT PMA.

In Indonesia, foreign investors can start business operations right away without the need to set 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 who are not willing to incorporate a company in Indonesia can register their products via a legally registered product license holder.

 

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 taken care of with this legally registered agent that already possesses an import license.

Halal Certification after Product Registration in Indonesia

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, approximately 88 percent of Indonesian citizens are Muslims. It would be such a loss if you do not consider getting your products halal certified.

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

Product Registration in Indonesia with Cekindo

As a leading consulting company in Indonesia, Cekindo 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 are here to provide professional guidance and assistance.

Fill in the form below to discuss your business needs with our experts, who will respond to your message shortly.