Population in Indonesia is expected to arrive at 270 million in 2020. This is one of the reasons why the possibilities for the cosmetic and skincare business in Southeast Asia’s biggest economy is still bright for the coming years.
Indonesian Ministry of Industry said that the estimation of the Indonesian cosmetic and skincare industry will before long arrive at 100 trillion IDR from the current 46.4 trillion IDR. Euromonitor International supported that statement by saying that Indonesia will turn into the fastest-growing cosmetics and skincare products market in Asia.
So, Indonesia will likely make it to the best ten business sectors for global cosmetics and skincare products by 2020.
Doing Business Cosmetic in Indonesia
12% to 15% of the population in Indonesia is estimated to be in the average to high pay range. These purchasers who basically live in the large urban areas can stand to purchase top-of-the-line imported products. High quality, trends, and brand names assume a significant role when settling on personal choices for this group of the population. Various cosmetics and skincare brands are already present in the market.
However, it is still a long way from being exploited by global cosmetics and skincare manufacturers, personal care or dermo-cosmetic products. In addition, Indonesia has seen a quick development of shopping centers throughout the last ten years.
There are more than 100 shopping centers registered in Jakarta alone. Along these lines, doing cosmetics and skincare business in Indonesia is considered as a brilliant move.
The Regulations of Exporting Cosmetics and Skincare Products to Indonesia
In Indonesia, domestically manufactured and imported cosmetics and skincare products will have to be notified before being regulated in the market. The license comes as a notification and is intended to guarantee all cosmetics and skincare products regulated in Indonesia fulfil the essential criteria set up by BPOM with respect to the product’s quality, safety, purpose, and design.
For more information regarding the regulations, here are ways to export your own cosmetics and skincare products to Indonesia.
1. Get a Licensed Distributor Permit from Your Local Agent
Your local agent ought to acquire a distributor license which enables them to get the products from the source manufacturer or company. They will later be called as the official merchant of your products.
Residents of Indonesia used to be able to privately purchase cosmetics or skincare products directly from the organization or its merchants abroad, resell the products, and cut the distribution channels with the goal that the products they sold were less expensive. However, such things are viewed as illegal under the new law.
It is expected that only registered products imported by enrolled organizations can enter the Indonesian market under the new law. It is because of the fact that there are overwhelming false products accessible in the market.
2. Registering Your Cosmetics or Skincare Product to Indonesian Agency for Drugs and Food Control
In Indonesia, the step-by-step process of cosmetics and skincare products registration is directed by Indonesian Agency for Drug and Food Control, also known as BPOM which is under Indonesian Ministry of Health. To be capable of continuing products registration in Indonesia, you need to have an organization in Indonesia or a distributor which will register your products under their own Indonesian organization.
After you choose which organization you will use for product registration, you have to at first submit an online form with requested supporting documents to BPOM E-application to acquire a client ID and password for your organization. Once your organization is registered at BPOM, you can start the process of registration, for example, document preparation, product submission, and so on.
3. Meeting the National Standard of Indonesia (SNI)
As a business owner or a foreign organization who wants to start a business in Indonesia, you ought to consistently be prepared to have SNI accreditation. With SNI accreditation, you will guarantee a smoother and more profitable business process now and later on.
The reason for organizations to procure SNI accreditation is to give acceptable quality products and ensure the buyers regarding their safety under the general guidelines. For SNI accreditation to be acknowledged and broadly received by organizations in Indonesia, the Indonesian government defined SNI necessities with fulfilment of the World Trade Organization Code of Good Practice, for example, straightforwardness, receptiveness, and so on.
4. Paying the Import Duties
The Import duty for Cosmetic set to Indonesia is grouped under Health and Beauty (CDF categories). The duty is applied on the complete sum of product cost, insurance cost, and shipment cost. By and large, the import duty for cosmetics and skincare products are 10%.
Make or Produce Your Cosmetics or Skincare Products in Indonesia Without Having to Deal with Complicated Licensing
Producing a new cosmetics and skincare line can be overwhelming, especially when it comes to discovering every relevant guideline, taking care of the necessary paperwork, and implementing the essential quality tests. Fortunately, Mash Moshem Singapore is here to assist you with finding your way through the maze of cosmetics and skincare regulations and quality assurance prerequisites applied to Indonesia.
We will make sure your cosmetics and skincare products are good for use and that administrative paperwork and quality tests are dealt with. Our administrative specialists will respect your organization’s ingredients and packaging prerequisites.
They will also assist you with deciding the Indonesian and global regulations that apply to your business region alongside the approved and blacklisted active ingredients, the quality tests needed to validate product compatibility and stability, the standards to direct a safety evaluation of your product, and so on. Besides, we understand that regulatory compliance is crucial to the achievement of your cosmetics and skincare business. Our specialists will regularly monitor changes in regulations and adjust their recommendation appropriately.
To additionally help you in advertising your cosmetics and skincare products and keep the administration simple, we will even handle the required notification that will guarantee your products fulfill the Indonesian industry standards at every level. Mash Moshem Singapore is a full service OEM/ODM cosmetic manufacturer.
We will handle the regulatory compliance of all your cosmetics and skincare projects and help you design, create, and deliver the cosmetics and skincare products of your dream. So, don’t hesitate to get in touch with us for more information and future business projects.