Understand the Online Single Submission Licensing System in Indonesia
In Indonesia, if you want to expand your business or distribute your product, you have to apply for particular licenses and register your product (for certain products).
A business license is required for any business activities and companies, including foreign-owned companies (PT PMA). To facilitate and ease business licensing processes, Online Single Submission (OSS) system has been implemented.
With OSS, all business entities will have to register online. After completion of registration at the OSS, each business will automatically get a Business Identity Number NIB (Nomor Induk Berusaha) one day after the registration, provided that all required documents are complete. A Business License will also be granted alongside the NIB if your business does not require other licenses, which depends on the business sector your company is engaged in.
Classification of Business License in Indonesia
- A company engaged in general trading, goods or other services should have a business license in Indonesia.
- A company engaged in the manufacturing industry outside of oil, gas and geothermal energy, should have an industrial business license.
- A company engaged in other industries, such as construction, should have a construction business license.
Since September 2019, 45 additional business fields (KBLI) are no longer required to obtain additional licenses. Only NIB and SIUP are required to start immediate business operations in Indonesia. Check out the 45 KBLIs here.
Obtaining Import License in Indonesia
Before the implementation of OSS (Online Single Submission), any businesses who wanted to import goods to Indonesia legally were required to obtain a special license – the General Import License (API-U) or a Producer Import License (API-P), depending on what products you were dealing with. The processing time of these licenses could take up to five months.
However, the implementation of the OSS licensing system and the cancellation of unnecessary procedures by Ministry of Trade have allowed more convenient and shorter processing time.
Product Import Licenses in Indonesia
Medical & BPOM Distribution Licenses
Foreign and local companies that intend to sell medical devices in Indonesia are required to obtain two licenses: an Indonesian medical distribution license and a medical devices registration. For an Indonesian medical distribution license, you must set up your own local entity in Indonesia or utilize a distributor with a medical device distributor license issued by the Ministry of the Health.
Furthermore, you will also need to secure BPOM distribution license during the registration process of your products.
Learn more How to Register Medical Devices in Indonesia
Cosmetic Distribution License
Before any cosmetic products are allowed to be distributed and sold in Indonesia, BPOM distribution license is required. To secure your BPOM distribution license, you are required to register your cosmetic products at the Agency of Drug and Food Control (BPOM).
In general the procedures of cosmetic registration are as follows:
1. Register legal entity at BPOM
2. Register manufacture
3. Register cosmetic products
Furthermore, every importer is required to maintain Product Information Files (PIF) that include information on import and distribution of cosmetic products.
Learn more How to Register Cosmetics in Indonesia
Food & Beverages Distribution License
To be able to distribute and sell your food and beverages across Indonesia, you will need to register your food and/or beverages at BPOM to obtain BPOM distribution license.
In general the procedures of food and beverages registration are as follows:
1. Register legal entity at BPOM
2. Register facility, followed by inspection
3. Register manufacture
4. Register food and/or beverages
Health Supplement Distribution License
If you are looking to distribute and sell food supplement and/or traditional medicine in Indonesia, you have to follow similar registration process at BPOM in order to secure your BPOM distribution license.
In general the procedures of food supplement registration are as follows:
1. Register legal entity at BPOM
2. Register facility, followed by inspection
3. Register manufacture
4. Register food supplement and/or traditional medicine
