Reasons to Register Cosmetic Products Line You’re Selling in Indonesia

Indonesia’s cosmetic market currently amounts to more than $1.5 billion. Indonesian halal cosmetic products gain a steady growth of up to 20% annually. 86% of Indonesia’s population is Muslim, and halal certification for imported products will soon be implemented. It is not surprising that halal cosmetic products are continually in demand in the local market.

Because of the increasing consumption of cosmetic products by urban dwellers and recently those in rural areas, the Industry Minister of Indonesia, Mohamad S. Hidayat, forecasted that Indonesia would be among the top three markets in Asia-Pacific in the next 10 years.

Because makeup consumption in Indonesia is increasing, the rise of cosmetic product registration has also increased exponentially. Huge and established global companies, such as L’Oréal, have already set up their factories in Indonesia and opened numerous branches nationwide.

What It Takes to Open a Cosmetic Products Business in Indonesia

BPOM is the Indonesian Agency for Drug and Food Control. It has laid out a stringent set of guidelines on cosmetic importation and distribution within the country, which has helped curb the illegal importation and hazardous consumption of cosmetic products in Indonesia.

In Indonesia and other countries, imported products have to be registered and approved by BPOM. However, a foreign investor or distributor must know certain things about BPOM Indonesia registration.

First, register every product and its variation separately at the BPOM. This is also important if you intend to market hundreds to thousands of cosmetic products in Indonesia. You must have the same number of registrations to offer the products legally.

Another thing to consider is that you would need a local agent or business partner in Indonesia. This local partner will help you obtain a certificate or a distribution permit. The local business partner will also become the license holder, importer, and distributor.

Related article: The Latest Regulation on Exporting Cosmetics to Indonesia

The BPOM Registration Process

As mentioned earlier, the BPOM Indonesia registration process requires you to obtain a local agency to obtain an import license. Aside from that, the local agency will also represent the foreign company’s presence in Indonesia. A foreign distributor could not operate legitimately within the country without a local agency. Finding a local partner to get your license from the BPOM without strain also requires you to find a well-reputed local agency.

Aside from obtaining necessary licenses and permits to operate in Indonesia, the ASEAN Harmonized Cosmetic Regulatory Scheme also requires companies to complete an online application. Through this application, the company can distribute cosmetic products in Southeast Asia and obtain the permit; once again, a foreign company needs a local counterpart. Otherwise, it should establish its own company in Indonesia.

What to Expect from a Local Agency

A local agency can do more than assist a foreign company in obtaining an aesthetic product registration. Some of the services that you can expect from these agencies include the following:

Market Research

This includes gathering information about the marketability of a particular cosmetic product. For instance, what are halal cosmetics’ chances of being patronized in Indonesia? Will a new line of organic cosmetic products sell in the rural areas of Indonesia? The company can easily decide whether to push for a BPOM registration with such initial information.

Distributor Selection

There are numerous distributors around Indonesia. A foreign company needs to partner with a trusted, established distributor. This distributor will hold the product license for years. Having the right local partner will ensure the marketability of a product. Also, it is crucial to avoid penalties and legal sanctions by the Indonesian government.

Licensing

Under the recent Indonesian Law, only registered products from licensed distributors can circulate in the Indonesian market. Purchasing products directly from cosmetic companies abroad and selling them locally by Indonesians without a license is illegal. This activity is punishable by imprisonment of up to 15 years and a penalty of IDR 10 million.

Cosmetic Registration or Company Registration

Every cosmetic product and its variation should have its own registration. In addition, the company that aims to distribute these products must also obtain BPOM Indonesia registration. When the product is registered, BPOM issues a notification and a registration number. The registration number is printed on the product’s packaging and is valid for three years. The company can extend the registration upon proper application afterwards. The company should import cosmetic products every six months to keep the permit valid for three years.

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How to Select a Local Agency in Indonesia

There are many local agencies in Indonesia that can help you with your licensing and registration needs. InCorp Indonesia is an established and reputable Indonesian consulting firm specializing in local representation and business setup to efficiently assist you in obtaining registration for your cosmetic products and your company.

Our company has been in the business for several years now and is servicing foreign companies who want to introduce imported cosmetic products to the local markets of Indonesia. You can visit our website at InCorp Indonesia (an Ascentium Company) for more information on how we can assist you with your registration process and how you can efficiently take your skin care products an inch closer to your target markets.

You can also refer to our client testimonials to find out what our select clients have to say about our service delivery and how we helped them obtain cosmetic product registration until they were strengthened and became viable entrants in the Indonesian market. Click the “Clients” tab on our website to see the long list of companies we have assisted in Indonesia.