Food and Beverage industry has been growing recently, and many entrepreneurs are attracted to have such businesses, especially in Indonesia. This is followed by the fact that there is an increase in spending on food and drink of the growing middle class. It has been the main contributor to its development and it needs to be regulated with BPOM.

There is a fact that Indonesians are willing to stand in line to buy food and drinks, especially if the food or drink is in the hype. For example, when the bubble tea hype happened last year, people were on the line for hours only to get their popular drinks. It proves the consumption of the people in Indonesia seems cool and calm amid the current economic slowdown.

Along with the situation, the government expects more companies will enter the food and beverage market in Indonesia. However, it might be a tricky game as you would need to register your food products and get a BPOM certificate before selling out to the market.

In this article, we will give you an overview to get a BPOM certificate in Indonesia!

What Food Products Must Be Registered in Indonesia?

Badan Pengawas Obat dan Makanan (BPOM) or in English we say The National Agency for Food and Drug Control (FDA), is the one who regulates all the food products in Indonesia.

The term “food” as anything that comes from biological sources of agricultural products, plantations, forestry, fisheries, farms, marine or water environments, whether it is processed or unprocessed, but all those are used as food or drink for human consumption. Therefore, they have to be registered to BPOM in Indonesia. Even though BPOM also supervises the medicines and therapeutic goods and food products, both have different regulations.

However, some food products are exempt from BPOM registration. This exemption includes products which are,

• Imported for research, test, and/or own consumption purpose.
• Used as ingredients for end products.
• Not sold to end customers.
• With a life cycle of less than 7 days.

For example, if a pizza restaurant wants to import olives and tomato paste for their pizzas. They don’t need to register those products since those ingredients are for making the final product, a pizza. But, if both olives and tomato paste were sold separately, they would need to register the products.

Who Can Register The Products?

In this country, there are only limited liability companies that are established under Indonesian Law and have an import license that can register products to BPOM. If you don’t have a company or haven’t appointed any importer yet, well you have 3 options to choose. 

1. Setting up a foreign-owned company

Your first option would be, to set up a foreign-owned company, a PT PMA. The minimum investment plan for setting up is 10 billion IDR (around 760.000 USD), and 2.5 billion IDR must be paid up capital

The maximum allowed foreign ownership can be:

• 100% for import and export companies.
• 67% for distribution companies.

Import - export companies cannot distribute products. Therefore, they need to assign one. Limited foreign ownership for distribution companies that means, you must have a local partner entrepreneur.

2. Setting up a local or a nominee company

The second option for F&B registration in Indonesia is, to set up a local or a nominee company (PT). A PT can be established with a capital of 51 million IDR (around 3.800 USD). 

However, if you plan to hire foreign employees, you should state at least 1 billion IDR (around 75.000 USD) as paid-up capital through a capital statement letter. The nominee companies do not need to comply with foreign ownership restrictions, since its shares are pledged to a local nominee.

3. Appointed importer or distributor

The third option is, to look for an appointed importer or a distributor. It means another company in Indonesia is assigned by you to be the importer or distributor of your products. 

You don’t even have to hold a legal presence in Indonesia. However, signing an exclusive distributor agreement would mean that your appointed distributor will hold your products for 5 years.

BPOM Food Products Registration Process in Indonesia

You can proceed to product registration, after you have decided on the above. The type of products are based on beverage and processed food registration. If the products have a difference in packaging, composition, manufacturer, importer or distributor name, or labeling design, they are still considered as one registration.

Moreover, the process of food products registration is done in three stages.

Stage 1: Audit

The first stage of product registration is an audit on a distribution facility. Before starting with the registration, you must have an appropriate place for storing your products.

The audit will be conducted by the local BPOM of where your facility is located. The audit result applies to every food product that is to be registered.

Stage 2: Assessment

The second stage is the assessment of the products. They are divided into 4 categories depending on the type of risk: with a high, medium, low, or very low risk factor.

Based on the results, BPOM will issue an official invoice for the company to proceed to the next stage.

Stage 3: Evaluation

Finally, the last stage is the evaluation. It can have 3 possible results:

1. Approval of your product registration application. BPOM will issue ML codes for your products.
2. Rejection of products registration application. Due to rejection, you must start from the assessment stage.
3. Additional data is required. In this case, you will be given 50 days to submit the requested data. If you fail to provide data in time, the registration process will be canceled automatically.

The expected total time of the registration process is from 6 months to 1 year.

BPOM issues ML codes for 5 years after the approval. The extension of the ML codes is possible 6 months before the expiration date.

The Requirements for Food Products BPOM Registration

Administrative requirements for BPOM

• Registration form
• Legal documents of the importer
• Audit results on storage facilities
• GMP/ HACCP/ ISO 22000 certificate of the manufacturer
• Letter of appointment. It must clearly state that your appointed importer or distributor will proceed on the product registration.
• Certificate of Free Sales
• Health Certificate

Technical Requirements for BPOM

• Composition information on ingredients
• Manufacturing process
• Storage information
• Production code information
• Labeling design
• Certificate of Analysis of the finished product

It is so important to plan food products registration if you want to sell your products all over in Indonesia. What you need to do is prepare all the things that are mentioned above, then achieve a successful BPOM registration.

 If you are unsure about your food products comply with Indonesia regulations, or you have tons of questions regarding the registration, you can contact us. Viettonkin will always be ready to assist you!

Are you a Skincare Entrepreneur? Or do you want to incorporate a skincare business? If so, you have to make sure that your skincare products have a permit from the National Agency of Food and Drug Control, also known as Badan Pengawas Obat dan Makanan (BPOM). 

When you get BPOM certification for your product, you will also gain trust from your customers, because they will know that your products are safe to use.

As written on the local news, skincare products in Indonesia have experienced a significant increase by 10% - 15%. The skincare business has increased due to escalating demand in the market. Those who live in big cities start to aware of how important skincare products are for them, especially for daily usage.

However, every skincare product that imported to and sold in Indonesia must be through the registration process by BPOM. It is the institution under the Indonesia Ministry of Health, which also regulates the problem of imported skincare products in Indonesia.

It is a little bit different from food and beverage registration, in which you can register products with differences in packaging, design, and manufacturer. But, for skincare products, in one registration, BPOM requires you to register every variation of skincare product as a separate item.

Therefore, if you wish to import a facial wash brand that comes in a variety of skin types, such as facial wash for dry skin, oily skin or normal skin, you would need to register each of them as a separate item. 

Who Can Register BPOM for Skincare Products in Indonesia?

As regulated by the BPOM, only legal entities established under the Indonesian Law can register skincare products in Indonesia. They also need an import license in order to bring the products to Indonesian customs.

There are two options that can get the BPOM certificate for Skincare Products in Indonesia:

1. Set up a foreign-owned company in Indonesia

As Indonesian-based skincare manufacturers with a valid license can register skincare products in Indonesia, the first option is to set up a foreign-owned company (PT PMA) in Indonesia and acquire relevant licenses.

For registering a PT PMA in this country, you need to submit an investment plan of IDR 10 billion (US$ 750.000). However, the 2.5 billion of it needs to be paid up at first. The maximum allowed foreign ownership depends on your business classification.

2. Set up a nominee company in Indonesia

Registering a nominee company with a letter of appointment from the Principal is possible too. The difference between nominee companies and PT PMAs is, they are established under requirements set for local companies.

You can set up a nominee company with at least 51 million rupiah (US$ 3.800), but you would still have total control over your company and its assets. As you purchase shares through a loan agreement between the nominee and you, they promise you for full control.

How To Get BPOM Certificate Skincare Products in Indonesia?

In this article, you will learn how to get the BPOM certificate. Let’s have a look!

1. Register to BPOM’s Online System

firstly, you need to visit the BPOM official website to register your company. After clicking the Register button, you will see the form, and you need to fill in based on your skincare product.

The data you need to fill is about your industry, products that have to be registered, and so on. You need to upload your documents incorporation as well. If the filling form process is done, you can submit and wait to be approved or rejected. You can check the notification on your registered email.

2. The Required Documents in Applying for BPOM Notification

The required documents to register your products to BPOM are the application letter and the statement letter. But, you should not be worried, you can download the template later on the website. After filling it, you need to submit these official documents together with your application. And, these are:

• SIUP (Surat Izin Usaha Perdagangan) - The License To Conduct Business
• NPWP (Nomor Pokok Wajib Pajak) - Tax Identification Number
• API (Angka Pengenal Importir) - Importer Identification Number
• Surat Pernyataan Penanggung Jawab - Statement of Responsibility
• Surat Perjanjian Akta Notaris - Authentic (Notarial) Deed
• Harmonized System (HS) Code.

However, the required administration documents depend on what products you are registering, they are local or import products:

1. The Required Documents for Local Products:

You need these documents to register the local skincare products. They are:

•  The Result of Laboratory Test, to make sure that your product is safe to be used.
• SIUP, as known as The License To Conduct Business.
• The Product Sample, with minimum 3 products.
• The Patent Rights.

2. The Required Documents for Import Products:

If you want to import skincare products, you will need to complete these administration documents. And, they are:

• API-U (Angka Pengenal Importir) - General Importer Identification Number. This import license is to trade a company to import goods in order to be traded in Indonesia.
• The Details of Composition and Specification.
• Product Sample, with minimum 3 products.
• The Patent Rights.
• The Result of Laboratory Test.
• Health Certificate From The Origin Country
• The Designation Letter From The Origin Country

Keep in mind, if your skincare products meet the requirements and your registration succeeds, you will receive a notification from the BPOM. BPOM will issue the notification number within 14 working days after the validation of the payment.

As you can see, you need to prepare everything before getting the BPOM certificate for your skincare products. Remember, preparation is the key to a successful BPOM registration. If you are not sure whether your products comply with Indonesia regulations or you need our assistance, you can contact us. We will always be ready to assist you anytime!