Registration of cosmetic products in Indonesia – If you have the idea of ​​starting a cosmetics business, you may be wondering how much it will cost and whether it will be profitable or not and how the processes and procedures have a marketing license in the destination country to start running, producing and marketing the product. This question is a question that is often asked by business startups and investors. Many of you may be wondering about the same thing about this, here are some important things you need to know about running a business in the beauty cosmetics field.

Nowadays cosmetics have become an indispensable feature of the individual lifestyle. In addition, the growing awareness of individual beauty is one of the main driving factors for the use of cosmetics in the global market. Together with all people, both women and men, there is an increasing use of cosmetics in everyday life, which complements the growing demand for the global cosmetics market. Therefore, lifestyle changes have driven the growth of the global cosmetics market.

In Indonesia, The Cosmetics Business has Experienced a Very Significant Increase

The national cosmetics industry recorded an increase in growth of 20% or four times the national economic growth in 2017.

The increase in growth to this double digit was driven by large demand from the domestic and export markets in line with the trend of people starting to pay attention to personal care products as their main need.

Currently, cosmetic products have become a primary need for women who are the main target of the cosmetics industry. In addition, along with the times, the cosmetic industry has also begun to innovate in cosmetic products for men and children. 

The domestic cosmetic industry increased by 153 companies in 2017, so that currently the number has reached more than 760 companies. Of the total, 95% of the national cosmetic industry is the small and medium industry (IKM) and the rest is large-scale industry.

From medium and large scale industries, some of them are able to export their products abroad, such as to Asean, Africa, the Middle East and others. In 2017, the export value of national cosmetic products reached US $ 516.99 million, an increase compared to 2016 of US $ 470.30 million. Indonesia is one of the large cosmetic markets, so this business will be prospective and promising for producers who wish to develop it domestically.

The potential for this domestic market includes the increasing number of young people or the millennial generation. Another potential is the trend for people to use natural products (back to nature), thus opening up opportunities for the emergence of cosmetic products with natural ingredients.

Additional information:

1.  Total Sales Value of Cosmetics Products in Indonesia(2010-2017) Source: Ministry of Industry. The Indonesian cosmetics and toiletries industry recorded an extraordinary growth of 11.99% in 2017 with a total sales value of IDR 19 trillion. This is higher than the industry’s average annual growth in the last six years of around 10%. The same thing also happened to the export of cosmetic products, which also grew by an average of 3.56% in the last five years. Total Sales Value of Cosmetic Products in Indonesia (2010-2017) As of September 2017, the Food and Drug Supervisory Agency (BPOM RI) reported that 33,823 registered cosmetic products were sold in the country. This is an increase of 11.57% over the same period the previous year. The market size of the Indonesian cosmetics industry in 2017 reached IDR 46.4 trillion, up from IDR 36 trillion from the previous year.
2.  Until last year, the government recorded 797 large cosmetic industries and small and medium industries (IKM) in Indonesia. This figure is up from 760 companies in the previous year. From 797 national cosmetic industry. There are 294 industries registered in the Investment Coordinating Board (BKPM).

List of the Biggest Cosmetic Companies in Indonesia

PT. Paragon Technology and Innovation > Wardah
PT. Martina Berto Tbk > Martha Tilaar Group
PT. Kino Indonesia Tbk > Kino
PT. Mustika Ratu Tbk > Mustika Ratu
PT. Unilever Indonesia Tbk > Unilever
PT. Mandom Indonesia Tbk  > Mandom

Based on The Explanation Above, Then How About the Flow to Register the Beauty Cosmetic Product in Indonesia?

Before We Explain. What is Cosmetics?

As defined by Wikipedia. Cosmetics are a category of health and beauty products that are used to treat the face and body, or are used to accentuate or change a person’s appearance. Although cosmetics are generally considered to be simply makeup that is used to change a person’s appearance, cosmetics can also refer to a number of products that are used to treat the skin and body, as well as those used to add fragrances. There are many cosmetics available in these different categories, each one designed for a different purpose and displaying different characteristics.

Cosmetics are widely used and accepted in many different cultures. The popularity of cosmetics can be attributed to aspects of self-expression and creative self-identity. Makeup and cosmetics can be used to subtly enhance natural features or create an extraordinary new look.

Cosmetics are formed from a mixture of chemical compounds that come from natural sources or that are made synthetically.

Cosmetic Regulations in Indonesia

You may have seen on the Internet or elsewhere regarding the regulation of the cosmetic industry in Indonesia. Below are the reference regulations for the cosmetics industry which are regulated by the National Agency of Drug and Food Control (BPOM).

Before you start, it’s a good idea to check the information published by BPOM Indonesia specifically for beginners and cosmetic businesses. This will be very helpful in knowing what is allowed in the production process.

Product Information Document

+  Regulation of the Head of the Drug and Food Supervisory Agency No. 14 of 2017 concerning Guidelines for Product Information Documents

Cosmetic Notification

+  Minister of Health Regulation No.1176 / MENKES / PER / VIII / 2010 of 2010 concerning Cosmetics Notification.
+  Regulation of the Head of the Food and Drug Supervisory Agency No. 19 of 2015 concerning Technical Requirements for Cosmetics
+  Regulation of the Food and Drug Supervisory Agency No.23 of 2019 concerning Technical Requirements for Cosmetic Ingredients
+  Regulation of the Food and Drug Supervisory Agency No. 12 of 2020 concerning Procedures for Filing of Cosmetics Notifications

Cosmetics Control

+  Decree of the Head of the Food and Drug Administration No.HK.00.06.42.0255 of 2006 concerning Technical Guidelines for Supervision of Alpha Hydroxy Acid (AHA) in Cosmetics
+  Regulation of the Head of the Food and Drug Supervisory Agency No. HK.03.1.23.04.11.03724 of 2011 concerning Supervision of the Import of Cosmetics
+  Regulation of the Head of the Food and Drug Supervisory Agency No.1 of 2016 concerning Technical Guidelines for Supervision of Cosmetic Advertising
+  Regulation of the Head of the Food and Drug Supervisory Agency No.18 of 2016 concerning Amendments to Technical Guidelines for the Supervision of Cosmetics Advertising
+  Regulation of the Head of the BPOM Food and Drug Supervisory Agency No 11 of 2017 concerning Criteria and Procedures for Withdrawal and Destruction of Cosmetics
+  Regulation of the Food and Drug Supervisory Agency No. 12 of 2019 concerning Contamination in Cosmetics
+  Regulation of the Food and Drug Supervisory Agency No.26 of 2019 concerning the Monitoring Mechanism for Cosmetics Side Effects
+  Regulation of the Food and Drug Supervisory Agency No.2 of 2020 concerning Supervision of the Production and Distribution of Cosmetics

Mans of Production Of Cosmetics

+  Regulation of the Minister of Health No.1175 / MENKES / PER / VIII / 2010 of 2010 concerning Cosmetics Production Permits
+  Regulation of the Head of the Food and Drug Supervisory Agency No.HK. 03.42.06.10.4556 of 2010 concerning the CPKB Operational Guidelines
+  Regulation of the Head of the Food and Drug Supervisory Agency No.HK.03.1.23.12.11.10689 Year 2011 concerning Forms and Types of Cosmetic Preparations that can be Produced by the Cosmetics Industry Category B
+  Regulation of the Head of the Food and Drug Supervisory Agency No.11 of 2016 concerning Guidelines for the Implementation of Sanitation Hygiene and Documentation in the Cosmetics Industry Category B
+  Regulation of the Food and Drug Supervisory Agency No.25 of 2019 concerning Guidelines for Good Cosmetics Manufacturing Practices

Etc.

+  Regulation of the Head of the Food and Drug Supervisory Agency No.HK.03.1.23.08.11.07331 of 2011 concerning the Method of Cosmetics Analysis
+  Regulation of the Head of the Food and Drug Supervisory Agency No.21 of 2015 concerning the Procedure for Approval of Clinical Trials
+  Regulation of the Head of the Drug and Food Supervisory Agency No.27 of 2016 concerning Procedures and Procedures for Providing Recommendations to Get Import Approval of Drugs, Traditional Medicines, Health Supplements, and / or Cosmetics as Complementary Items
+  Regulation of the Food and Drug Supervisory Agency No.33 of 2018 concerning the Application of 2D Barcodes in Food and Drug Control
+  Regulation of the Drug and Food Supervisory Agency 5/2020 concerning the Integration of Electronic Business Licensing Services in the Drug and Food Sector
+  Regulation of the Food and Drug Supervisory Agency No. 8 of 2020 concerning Control of Drugs and Foods Circulated Online

How to Register for BPOM for Cosmetic Products?

Before you start a cosmetics business, the most important thing in starting this business is to have cosmetic products licensed by BPOM RI. By having a BPOM RI license, your products can circulate in Indonesia and can be accepted by the public.

Registering cosmetics according to the BPOM notification is apparently not an easy thing. There are many steps and procedures that must be fulfilled. Here’s how to register cosmetics.

1. Register with the BPOM website

The first thing you should do is visit the BPOM’s official website at http://e-bpom.pom.go.id/. Then, you do your company registration. During the registration process, you must fill out an online form, according to the cosmetic product you have. The data that is filled in, in the form of login data, product-related data, industrial data and so on.

Notes: In addition to these data, you must also upload your PSB, along with several other important documents requested. After the online form filling process has been completed, all you have to do is submit and wait for the approval process from the BPOM.

2. Preparing the Required Documents

As previously reviewed, that in order to register to register BPOM for cosmetic products, several documents are needed. Generally, these documents are application letters and statement letters.

Some of the important points that you must fill in the application letter are as follows:

+  Company name
+  Detailed address and zip code
+  Phone number
+  Type of business and business license number (IU)
+  NPWP / Tax Card
+  API-U (import identification number)
+  Warehouse address and warehouse telephone
+  Statement of Person in Charge
+  Notary Deed Agreement Letter, and HS Code.

For a statement letter, you must include your name, address and position at your own cosmetic company, SIK Number (Pharmacist Permit), telephone must also be registered with BPOM. After that, this statement letter is signed and given a stamp.

Important Notes: Especially for SIK or Pharmacist Permit, it must be filled in by a company that is a cosmetic importer and does not produce its own cosmetic products.

You also need to know that registering with BPOM for cosmetic products has differences in terms of administration. That is, the registration itself is open for registration of local products, imported products and domestic products.

For documents on Administration and Registration of Local Products, you will need documents such as :

+  Laboratory test results;
+  Business License (IU) or Principle License (IP);
+  Minimum 3 samples and colored labels or patent rights;

Meanwhile, registration of imported products will require several documents that need to be prepared, such as : 

+  a description of the composition and specifications;
+  a copy of the IU (business license) or API-U;
+  a minimum of three samples;
+  Color labels and laboratory test results.

As for the registration of domestic products, it will require documents such as a letter of agreement or contract between the contract giver and the contract accepting party, the contract giver industry license, the contract accepting industrial permit.

Notes: NIB can act as a substitute for TDP, API & Customs Access as an Exporter & Importer.

Additional information:

For food, beverage, cosmetic and medicinal products, it is necessary to apply for halal certification of their products. Based on Law Number 33 of 2014 concerning Halal Product Guarantee (Law 33/2014). Article 4 of Law 33/2014 stipulates that products that enter, circulate and are traded in the territory of Indonesia must be certified halal.

What is Halal Certificate?

Halal certificate is a written fatwa issued by MUI for products that have been declared halal after going through the registration process, auditing, and meeting of the MUI Fatwa Commission.

What is LPPOM MUI?

The Institute for the Assessment of Food, Drugs and Cosmetics of the Indonesian Ulema Council or abbreviated as LPPOM MUI is an independent institution under the MUI that is tasked with carrying out the halal certification process, starting from registration, document collection, auditing, to making reports before the halal status of the ingredients is determined by the Fatwa Commission.

What are The Products That Can Be Certified Halal by MUI?

Products that can be issued a halal certificate by the MUI include food products, medicines, cosmetics, consumer goods (chemicals, soaps, detergents, skins, water filters, etc.), etc.

How do I Identify The Product Category that I Will Register for Halal Certification?

To identify product categories, companies can refer to the Decree of the Director of LPPOM MUI regarding the Terms of Classification of MUI-SH Products at the following link: http://e-lppommui.org/documents/SK11.II.2014_Ketentuk_Kel grup_Produk_berSH_MUI_(revisi-1).pdf

What is The Procedure for MUI Halal Certification?

The company must prepare documents related to the Halal Assurance System and implement, evaluate (internal audit), and take corrective actions if there are weaknesses related to the Halal Assurance System. After the process is carried out, the company can register for halal certification. More detailed procedures can be seen on the website http://www.halalmui.org/mui14/index.php/main/go_to_section/56/1362/page/1  applies to all companies that submit applications on the CEROL system.

Types of Products that Must Be Halal Certified

Referring to Article 1 number 1 jo. Article 4 of Law 33/2014, products that are required to be halal certified are goods and / or services related to food, beverages, medicines, cosmetics, chemical products, biological products, genetically engineered products, and used, used, or utilized goods. by society.

Important Notice:

This information was obtained from:

https://www.halalmui.org/mui14/main/page/faq-sertifikasi-halal

https://kemenperin.go.id/artikel/18957/Industri-Kosmetik-Nasional-Tumbuh-20

http://www.gbgindonesia.com/en/manufacturing/article/2018/indonesia_s_cosmetics_industry_the_rise_of_halal_cosmetics_11842.php 

https://kemenperin.go.id/artikel/21460/Perubahan-Gaya-Hidup-Dorong-Industri-Kosmetik and several other sources

If you have difficulty or ignorance in the process of registering a cosmetic distribution license in Indonesia, the procedures and legal basis applicable in Indonesia.

We are Indoservice, a company secretarial and licensing services consulting company that can assist you in processing the registration of your company’s beauty cosmetic products in Indonesia, trusted and experienced and committed to providing the best and fast service to meet your needs, don’t hesitate to contact us immediately to get service consultation, offers and the best from us. Telp. +62877-1449-8500 and e-Mail at: admin@indoservice.co.id