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.
