Regulations for Exporting Cosmetic to Indonesia – Indonesia has a large population relatively with good purchasing power and has become one of the most targeted countries for exports. Indonesia is expected to be in the top 5 or even 3 largest markets in Asia-Pacific.

However, due to the large flow of imported goods into Indonesia in the last 5 years – especially after the online shopping boom – the Indonesian government has issued strict regulations to protect its citizens. This is especially for goods that are directly consumed or utilized by consumers, such as food products, skin care, medicine and cosmetics. In short, only registered importers with legal certification from the Indonesian government are able to export their products to that country.

In this article, we will mainly discuss the export regulations for cosmetics and skin care products for Indonesia based on the latest regulations issued by the Indonesian government.

Step-by-Step Guide

1. Build Connections with local Agents or Representatives

To be able to export cosmetics and skin care products, the Indonesian Government created a new policy that imported companies must have a local agent to represent the companies presence in Indonesia. This local agent will help the company to obtain an import permit.

This import permit is a must to bring the company products to the Indonesian market. Without the presence of a local agent, it is impossible to register your company under the list of certified import companies.

2. Ask your Local Agent to Obtain a Licensed Distributor Permit

The next step is that local agents must also obtain a distributors license that allows them to receive products from the source company. The agent will be referred to as the official distributor of your product. In the past, Indonesian citizens could personally buy cosmetics or skin care products directly from companies or distributors abroad.

He can then sell the products and cut distribution channels so that their products are sold cheaper than those sold by official distributors. However, under the new rules, this action is considered illegal. Strict rules are applied for cosmetics and skin care products as there are huge fake products available in the market.

Under the new law, it is expected that only registered products imported by registered companies can enter the Indonesian market.

3. Register Each Product with the Drug and Food Regulatory Agency (BPOM)

Cosmetics and skin care products are under the drug category and therefore any company that wants to export their products to Indonesia must be registered by the agency known as BPOM in Indonesia. Each product must be registered separately and BPOM will issue a notification along with a code or number which must be printed on each product packaging.

The BPOM registration number is valid for up to 3 years and the company can extend the permit after that. However, there is a rule that to remain valid for up to 3 years, imported companies must import products every 6 months.

4. Meets Indonesian National Standards (SNI)

In the case of consumer goods, certain standards must be met by importing companies. Every product entering the Indonesian market must follow the standards that the government has established, including several tests that the product must go through, production processes, specific labeling techniques and requirements, as well as packaging methods.

All ingredients and product descriptions mentioned on the packaging must also be translated into appropriate Indonesian standards. Any misleading information on the package and in the advertisement will be considered a violation of Indonesian law.

Import Duty

In general, import duties for cosmetics and skin care products are 10%. By following the above step-by-step guide, you are one step closer to becoming a certified cosmetics and skincare importer in Indonesia. Consideration must be taken into account that these regulations are designed to protect Indonesian consumers and the local cosmetics and skin care industry.

There are around 700 cosmetics and skin care companies throughout Indonesia, which makes for stiff competition. To be able to survive in the Indonesian market, building trust with both the government as a policy maker and customers as your target market is a must.

Have an Import Certificate (SKI)

Cosmetic products originating from abroad and imported into Indonesian territory must be accompanied by an Import Certificate (SKI) issued by the Food and Drug Supervisory Agency (Badan POM).

This is regulated in the Food and Drug Supervisory Agency Regulation Number 30 of 2017 concerning Supervision of Importation of Medicines and Food into Indonesian Territory (Perka BPOM Number 30 of 2017).

There were several changes in PerBPOM Number 30 of 2017, which was regulated in 2020 concerning Amendments to the Regulation of the Food and Drug Supervisory Agency Number 15 of 2020 concerning Amendments to Regulation of the Drug and Food Supervisory Agency Number 30 of 2017 concerning Supervision of Importation of Medicines and Food into In Indonesian Territory (BPOM Perka Number 15 of 2020).

Two Types of SKI, Including (Perka BPOM Number 15 of 2020):

• SKI Border is a letter of approval for the importation of medicines and traditional medicines into Indonesian territory in the context of monitoring the distribution of medicines and food
• SKI Post Border is a letter of approval for the importation of traditional medicines in the form of quasi medicines, cosmetics, health supplements and processed food into Indonesian territory in the context of monitoring the distribution of medicines and food

Therefore, it can be concluded that cosmetic importers are required to have a Post Border SKI. The important point to remember is that SKI can only be processed if the business has a distribution permit from BPOM. If the importer already has a distribution permit, he can submit an application for SKI issuance online to BPOM.

Before submitting an application for SKI issuance, importers must register to have access rights on the official SKI Post Border service page of the Food and Drug Supervisory Agency or the Indonesian National Single Window System (INSW System) portal.

Furthermore, there are several requirements that must be fulfilled by importers of cosmetics which are regulated in Food and Drug Supervisory Agency Regulation Number 10 of 2021 concerning Standards for Business Activities and Products in the Implementation of Risk-Based Business Licensing in the Drug and Food Sector (Perka BPOM Number 10 of 2021).

The following are the requirements that cosmetic importers must fulfill to obtain SKI for Cosmetics (Attachment to Perka BPOM No. 10 of 2021):

General Requirements:

• Have an account that can be accessed via single sign on on the official SKI service page of the Food and Drug Supervisory Agency or the official page of the national single window institution (INSW System)
• The original scanned document of the application letter signed by the director or the director’s attorney has sufficient stamp duty
• The original scanned document of the statement from the person in charge has sufficient stamp duty
• Original scanned document of import power of attorney made in the form of a public deed by a notary if the applicant is a business actor whose company received the power of attorney to import
• List of HS Codes of commodities to be imported
• Clearly include the address of the warehouse where the product is stored

Special Requirements:

• Marketing Permit Approval
• Analysis certificate must contain at least:
• Product name
• Test parameters comply with regulations
• Test results
• Analysis methods
• Batch number/lot number/production code
• Production date
• Expiry date
• Invoice
• Statement of intended use or distribution purposes
• If necessary regarding safety and quality, the POM Agency can request other supporting documents in accordance with statutory provisions
• Cosmetics must have a remaining shelf life of at least 1/3 (one third) of the total shelf life

Cosmetics Distribution Permit (Cosmetics Notification)

In the previous, it was stated that cosmetic importers must first have a distribution permit before they can apply for SKI. Further details will be provided in the information below. The distribution permit known as Cosmetics Distribution Permit or Cosmetics Notification is regulated in Food and Drug Supervisory Agency Regulation Number 12 of 2020 concerning Procedures for Submitting Cosmetics Notifications (Perka BPOM Number 12 of 2020).

Cosmetics Notification aims to guarantee that cosmetics distributed in Indonesia meet the criteria for safety, usefulness, quality, marking and claims. The POM Agency Drafting Team in an e-book entitled A-Z of Cosmetics Notifications in Indonesia Volume I, wrote that applications for distribution permits for cosmetics are made online by filling in the notification template through the POM Agency’s Notifkos system.

Cosmetic importers must have access rights to the POM Agency’s Notifkos system. After having an access, cosmetics importers must complete various documents required for business entity registration in the Notifkos system, including (PerBPOM No. 12 of 2020):

1. NIB
2. A statement letter from the directors and/or management must not be involved in criminal acts in the cosmetics sector
3. Photocopy of Resident Identity Card/identity of directors and/or company leaders
4. Letter of recommendation as notification applicant from the Head of the local BPOM UPT
5. Photocopy of business license
6. Photocopy of Taxpayer Identification Number
7. Photocopy of agency appointment letter which is still valid at least 6 (six) months before the appointment ends, made in Indonesian and/or English
8. Photocopy of the contract cooperation agreement between the notification applicant and the Cosmetics industry outside the territory of Indonesia which is legalized by a notary
9. Photocopy of Certificate of Free Sale (CFS) for imported cosmetics originating from countries outside ASEAN
10. Photocopy of good manufacturing practice certificate or statement letter of implementation of good manufacturing practice for the Cosmetics industry located in ASEAN countries or outside ASEAN countries
11. Brand certificate documents (if required)

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