Lowtax Network

Back To Top

Your Lowtax Account

Process for cosmetic registration in Indonesia

Cekindo
19 August, 2014

Growth of population and interest in beauty and fashion are leading the growth in cosmetics market

Following statistics Indonesians are spending more money for health and beauty products and this trend continues to grow. For many global and international cosmetics and personal care companies Indonesia has become an exporting market target.

In an interview in The Standard Indonesian Industry Minister Mr. Mohamad S. Hidayat addressed that the Indonesian cosmetics market is worth US$ 1.5 billion out of US$ 47 billion which represents the entire ASEAN market. "In 10 years, Indonesia will be in the top three markets in Asia-Pacific," he said.

At the moment we can follow trend of double-digit growth, this is thanks to the growing middle class, increased disposable income and aggressive marketing. The most spending on beauty products is traditionally in urban areas. Global market organizations say that the rural population is showing dramatically higher interest in personal care products

Indonesia is the biggest Muslim country in the world; Its population is 86 percent Muslim. Customers are demanding therefore halal cosmetics. The Financial Times estimated the halal cosmetics market to be at US$ 5bn-US$ 14bn in annual sales, with an annual growth rate of around 20 percent.

How to grow market share?

According to Bloomberg News the market share in Indonesia are controlled by Unilever with the Signal, Lifebuoy, Sunsilk and Ponds brands, followed by Proctor and Gamble with the Pantene brand. L’Oreal holds the third place in market share, with about 6 percent, behind Proctor and Gamble’s 11 percent and Unilever’s 38 percent.

Global leader L’Oreal proved the importance of the Indonesian market by opening its biggest factory ever in 2012 just outside Jakarta. The facility has the capacity to produce 500 million products.

Due to number of products on the market, which has doubled, the Indonesian Food and Drug Monitoring Agency moved to an on-line application system for cosmetics in 2011.

Local agent

A local agent is a must. It is not possible for a foreign company to register products or obtain an importing license in Indonesia without using a local agent. Cosmetic product registration in Indonesia is very strict and the process is formal. In addition, the ASEAN Harmonized Cosmetic Regulatory Scheme cosmetic requires an online application before a company can distribute products on the ASEAN market. Therefore to make the process smoother and efficient selection of the right local business partner in Indonesia is crucial.

Local agent can help in Indonesia with:

• A distribution permit through a licensed distributor in Indonesia which is needed for foreign companies.

• All cosmetics products must comply with Indonesian National Standards (SNI), of testing. These include testing and limitations on microbial issues, the presence of heavy metals and the prohibited material.

• All cosmetic products must meet safety, benefit, labeling, quality and claim requirements. These are spelled out in Indonesia Codex Cosmetics and other official lists of national standards.

• All cosmetic products must follow precise rules for the labeling, production, packaging and advertising of cosmetics products in Indonesia.

• Translation. Labels on all products have to be translated into Bahasa Indonesia. Proper translation is essential to ensure that all instructions, uses and cautions are accurate.

• Import duties which are generally about 10 percent for cosmetics.

In August of 2013, there were updates to requirements for imported cosmetics in Indonesia. To standard distribution permit companies need to obtain an import certificate for each import they plan to sell in Indonesia. Newly there is also a rule about an expiration. Any imported products must have at least one-third of their valid storage time remaining before expiration.

The main aim of this regulation is not to make importation more difficult but to avoid illegally imported cosmetics to come to Indonesian market. The estimate is that illegal imports are reaching Rp 11.2 trillion and often do not meet the health and safety requirements set by the Indonesian government. For illegally importing there can be as much as 15 years jail time and Rp10 million fine.

Complying with cosmetics regulations for successful importing does not have to be difficult. Cekindo is prepared to help your company navigate Indonesia’s strict requirements and get your products into the hands of consumers. From market research to distributor selection, licensing, cosmetic registration or company registration, Cekindo is able to efficiently assist your company.



About the Author


Cekindo

Cekindo is market-entry consulting firm operating across Indonesia (Jakarta, Bali, Semarang). We provide one-stop solutions assisting foreign entities and entrepreneurs from various industries to successfully expand their market to Indonesia and beyond. Our main goal is to help you to focus on your business while we handle huge scope of HR, financial and legal services. Cekindo will assist you in setting up your business in Indonesia, supporting your daily operations and administrations, and representing your company in Indonesia.

PT. Cekindo Bisnis Grup, Business Park Kebon Jeruk, Blok H1-2
Jl. Raya Meruya Ilir No.88
Jakarta Barat 11620, Indonesia
Phone: +622180660999, Fax: +622180660901, Email: info@cekindo.com, Website: www.cekindo.com

 

 

« Go Back to Blogs

Blog Archive

Event Listings

Listings for the leading worldwide conferences and events in accounting, investment, banking and finance, transfer pricing, corporate taxation and more...
See Event Listings »