Entering Lucrative Market in South East Asia
In effort to register product in Indonesia you need to establish a legal entity and permit required. If you are not willing to establish one, you can appoint someone else as representative.
When you decide to appoint someone / companies that register establish a company in Indonesia, you may appoint local company to register your product in Indonesia, you need to be careful. Based on regulation applied, you are only given chance to appoint official distributor one time for your product.
The distributor will hold license toward the products for 3 to 5 years depends on the types of the product. If your local partner fails to market the product properly, the market of that product can be closed for several years.
In this case, there are 3 alternatives to register product in Indonesia as follow:
#1 Registration through Your Legal Entity in Indonesia. Foreign company that already establishes a legal entity in Indonesia can directly register a product under the company. Such registration can benefit you because the selling to local distributors can be managed directly. You can also register more products under the same company. Moreover, you can protect the permit of distribution of those products in Indonesia.
#2 Registration through Appointed Local Distributors. This option can be good alternative if you are not wish to establish a legal entity in Indonesia but still want to distribute your product in the country.
Local distributor must be appointed carefully because the regulation will only approve on official distributor. The distributor will responsible for the registration of your product and do the marketing besides hold the license for 3 to 5 years of your product.
If local distributor fails to penetrate the market, then your product’s market can be closed for several years ahead.
#3 Registration through a Third Party. The next resort you can choose to register product in Indonesia is through a third party. It is understandable for foreign investor not having local partner at initial stage. It is risky to go on “blind” like that. This is why trusted consultant may come in handy for your business.
A consultant company can have permit to register certain products. Furthermore, such company may import, distribute and register several products like medical equipment, beauty products, health or food and beverages. The partnership can be made through consultancy agreement.
The benefit of registering import product through third party is that you have full control of your business in Indonesia. You are also enabling to work with more than one local distributor at the same time.
Register product in Indonesia is authorized under the supervision of Ministry of Health and Food (Kemenkes) and Food and Drug Authority Board (BPOM). For medical equipments or households can be registered directly through Kemenkes to attain circulation license. For cosmetics, food supplements, food and beverages, drugs, and traditional medicines through BPOM.
Path of Registration
Register Medical or Household Equipments Products in Indonesia
Registration of medical equipments is strictly ruled in Indonesia. The manufacturer and distributor must propose license application of medical equipments before the products being imported, sold or used in Indonesia’s territory.
Medical equipments also ruled by Kemenkes. There are categories of medical equipment based on risk. These categories will affect the period registration. Class I medical equipments (low risk, 30 working days), Class IIa and IIb (middle risk, 60 working days), Class III (high risk, 90 working days).
License for medical and household equipments valid for 5 years and can be renewed. If there is modification on size of the label or packaging then the license must be adjusted. The company must have an office or local distributor in Indonesia which already registered in Kemenkes. Those who are valid as applicants:
- Main manufacturer in Indonesia
- Local representatives or local distributor
Registration of Food and Drugs
All food and drugs include traditional medicines, cosmetic, food supplement or processed food oblige to fulfil security requirement to enter Indonesia’s market. Registration of food and drugs ruled under BPOM one of which through Regulation of the Head of Indonesia Food and Drugs Authority No. 27 Year 2013 concerning Drugs and Imported Food Control to Indonesian Territory.
Registration of imported products must be made by local company, local agent or local distributor before it reach custom. Particularly for approval of cosmetic registration, Indonesia refers to the scheme of ASEAN Harmonized Cosmetic Regulatory.
For importing food one must attain registration number of Foreign Food (Makanan Luar) from BPO.M. The process or regular registration will take 2 to 3 months depend on the type of products. Each registration number will be renewed after 5 years.
For registering drugs, the guideline refers to ASEAN Common Technical Dossier (ACTD) in relevance to main documents such as GMP certificate, clinical study, stability study, and other additional documents. The registration of drugs will take 1 to 3 year process. In general, Indonesia will consider locally manufactured drugs compare to imported drugs.
Registering a business brand in Indonesia regulated through Law No 15 Year 2001 concerning Brand (Merek).
Brand protection can be attained only through registration process. Without registration, no brand can be protected. Application process includes formal scrutiny and evaluation on characteristic value and similarity with the existing brand.
If you pass the process of elaboration, the brand will be published in Official Brand Journal for 3 months. During this publication, anyone can appeal an objection to the brand. All registered brand in Indonesia will be valid for 10 years and possible to be renewed.
Are You Ready to Register Product in Indonesia?
Indonesia is lucrative market supported with active consumers. 60% of 250 million population are middle class with strong purchase power, a good brand and great marketing will joy the benefit of the market. If you ready to tap into the market, register product in Indonesia is a good initial business gesture. Share us your feedback on the comment box below.