Home Blog How to Start a Tea Business in Indonesia Uncategorized How to Start a Tea Business in Indonesia InCorp Editorial Team 21 January 2020 4 minutes reading time Table of Contents Product Registration and Labeling Requirements How to Register a Company to Sell Tea Products in Indonesia Start Your Business in Indonesia with Assistance from Cekindo Starting a business in Indonesia by opening a retail shop is one of the most profitable investments that a foreigner can do. But what do you sell actually to make the most out of your investment? Selling beverage products, especially tea can be a good idea. Indonesia is one of the top tea producers across the globe. In 2018 alone, the country produced over 140,000 tons of tea with production spread across major provinces like North Sumatra, West Java and Central Java. Furthermore, the country’s tea sector has seen respectable growth over the years because of the country’s surging middle-class group that has contributed to their increased sales. But, other than local tea products, the Indonesian people are also fond of international tea products, which may offer different aromas and taste that are rare in Indonesia. As a result, investments and exports are also rising in the sector with many multinational companies making this archipelagic country their production base. There are appealing investment opportunities for foreign investors in tea sales in Indonesia. If you are planning to open a retail store to sell tea products, this article is for you. Cekindo will guide you on how you can start a tea business in Indonesia. Continue reading. Product Registration and Labeling Requirements Register your tea products It is important to know that you will have to register your tea products with the National Food and Drug Control Agency (BPOM). This is because tea belongs to the food and beverages category and therefore, are regulated by the BPOM. The next step after the registration with BPOM is to apply for import license. One thing you have to take note is that a foreign company must use a licensed agent for product distribution in Indonesia. Before you can apply for the necessary licenses, you need to first register your company in Indonesia (discussed in the next section). If you are just a product reseller, there are no specific restrictions for you to start your retail store in Indonesia selling the tantalising tea products. Once you secure your licenses, you can start distributing and selling your tea products. But, there is one essential thing to be taken into account first,namely labeling requirements. Labeling Requirements Retail sellers of tea in Indonesia are required to comply with the labeling requirements in accordance with Indonesia Law. The products sold must have the following information on their labeling: Product name and manufacturing company name Ingredients if additives are used Content and net weight Registration number Country of origin Expiry date Distributor or importer information Production code Storage instructions Halal or non-halal information (secure your Halal certification now) How to Register a Company to Sell Tea Products in Indonesia The first step you should do before starting a business in Indonesia is to choose the right legal entity and register it. Only a limited liability company will allow you to acquire import license and thus this is the most suitable legal entity for foreign investors. Here are some of the important things foreigners have to take into account when registering a company in Indonesia: You can set up a private local company with an Indonesian partner; or a 100% foreign-owned limited liability company (PT PMA) with different minimum capital investment between the two legal entities. Contact Cekindo for further details. You must submit an investment plan to the Indonesian Investment Coordinating Board You are required to comply with all company registration regulations such as the procedure, permits and licenses application Foreigners must register with the Indonesian Customs when they are going to import or export tea into or from Indonesia. Start Your Business in Indonesia with Assistance from Cekindo Starting and running your own business in Indonesia can be both rewarding and exhilarating as there are always challenges from regulators, marketplace and daily operations. Cekindo is here to help you with your business startup, and improve bottom lines once your business is up and running. What you need now is sound advice and strategy from people like us who know what we are doing, people who are knowledgeable and experienced to help you through the maze. Our solution is the backbone of your successful business. Book a free consultation with Cekindo now. Start by filling in the form below. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions How do foreigners decide on the proper entity in Indonesia? It all depends on your business’s purpose and nature. Our consultants will help you to clear out the matters. Is halal registration required for all products in Indonesia? Under the latest regulations on Halal Product Assurance, the mandatory requirement for halal certification has been expanded to encompass a wide range of consumer products in Indonesia. This change, which was previously voluntary, now dictates that various items must obtain halal certification. Initially, the certification focus has been on food and beverage products, with the deadline for compliance set for October 17, 2024 How long does it take to set up a PMA company, and how soon can it begin commercial operations? Establishing a PMA Company in Indonesia typically takes around two weeks after completing document requirements. Following establishment, additional steps such as obtaining licenses and registering for Tax ID vary based on business type. Last, some licensing processes may take time, necessitating thorough planning and preliminary assessments of the business plan for a smoother process. Is it safe to register a product under a local distributor? Yes and no. It is vital to choose a reliable distributor as they will register the product under their company and become the product license holder and the import license holder. Changing the local distributor is easier if you are satisfied with the cooperation. Get in touch with us. 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Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Uncategorized Why Business Process Outsourcing Services Matter in a Crisis Situation Like COVID-19 in Indonesia Read more How to Start a Business in Power Supply in Indonesia Read more Procedures for Importing Goods into Indonesia from European Countries Read more