Indonesia’s Regulation on Cosmetic Products Notifications Provides Criteria for License Distribution

• Indonesia’s Food and Drug Monitoring Agency (BPOM) issued a new regulation in June 2020 that provides the criteria for businesses to receive licenses for the distribution of cosmetic products.
• The country wants to ensure that cosmetic products distributed in the country fulfill the criteria with regards to safety, quality, design, and purpose.
• Only cosmetic manufacturers, businesses, and importers are eligible for the distribution license.
• These entities will need to provide a number of supporting documents to the BPOM upon submitting their application.

Indonesia’s Food and Drug Monitoring Agency (BPOM) issued Regulation No. 12 of 2020 (Reg 12/2020) in late June 2020 that provided the licensing criteria for businesses engaged in the distribution of cosmetic products in the country.

The license will come in the form of a ‘Notification’ and is designed to ensure all cosmetic products distributed in Indonesia fulfill the necessary criteria established by BPOM with regard to a product’s safety, quality, design, and purpose.

Only eligible applicants can secure a Notification and there are several documents that applicants need to submit to comply.

More than 40 percent of the violations handled by BPOM pertains to illegal cosmetics with the agency confiscating some US$13 million worth of illegal products in 2019. Furthermore, the rise of online marketplaces has made it even more difficult to stop their distribution.

BPOM has taken increasing measures to clamp down on fake and illegal products. Since 2018, all cosmetics, health supplements, processed foods, and traditional medicines must have a 2D barcode on the product label and must be Halal certified.

There are two types of barcodes – identification and authentication barcodes. Both types are issued by BPOM and provide information, such as the permit and batch numbers, expiry dates, and serial numbers.

Who is eligible to secure a Notification?

Reg 12/2020 states that only the following parties can apply for Notifications. These are:

• Cosmetic manufacturers located in Indonesia;
• Individual or corporate cosmetic businesses that have production contracts with manufacturers (overseas) or in the country); and
• Cosmetic importers.

Supporting documents

These aforementioned entities will need to submit several mandatory documents as part of the application process.

For manufacturers these are:

• Business identification number;
• Identity of the company’s management;
• Taxpayer identification number;
• A copy of the licensing agreement between the trademark owner and the applicant;
• A certificate for Good Manufacturing Practice (GMP) for cosmetic products;
• A letter stating that if the Notification number has been registered, the applicant will not object if their application number is cancelled by the BPOM;
• A letter stating the management team has not been previously involved in criminal activities within Indonesia’s cosmetics sector; and
• Recommendation letter issued by the Head of the BPOM’s Technical Implementation Unit.

For businesses these are:

• Business identification number;
• Identity of the company’s management;
• Taxpayer identification number;
• Business license;
• A letter stating the management team has not been previously involved in criminal activities within Indonesia’s cosmetics sector;
• A letter stating that if the Notification number has been registered, the applicant will not object if their application number is cancelled by the BPOM;
• Trademark certificates (if applicable);
• Recommendation letter from the Head of the BPOM’s Technical Implementation unit; and
• Copy of the agreement between the applicant and cosmetics manufacturer that possess a GMP certificate.

For importers these are:

• Business identification number;
• Identity of the company’s management;
• Business license;
• Taxpayer identification number;
• A letter stating the management team has not been previously involved in criminal activities within Indonesia’s cosmetics sector;
• Recommendation letter from the Head of the BPOM’s Technical Implementation unit;
• Copy of the agreement between the importer and the overseas manufacturer (that is GMP certified) that is legalized by a notary;
• A Free of Sale Certificate for cosmetics imported from outside of ASEAN; and
• Copy of the agreement between the applicant and an ASEAN cosmetics manufacturer that possess a GMP certificate, if applicable.

How to apply

Prior to submitting the Notification application, applicants should first register with BPOM through their website.

Once an application has been submitted, the applicant will receive a user ID and password via email, and they will also receive an electronic payment order. Payment must be made within seven days of the order being received.

For applicants that produce or import non-perfume cosmetic products, the timeframe to receive the Notification verification is within 14 working days. The timeframe for perfume products is three working days.

The Notification will remain valid for three years, with the option of an extension at the end of the time period.

Do cosmetic products have to be Halal-certified in Indonesia?

As of October 17, 2019, many consumer products and related services will now have to be Halal-certified, although cosmetics and pharmaceutical products will have until 2022 to comply.

According to the Global Islamic Economy Report 2018/2019, Indonesian Muslims spent US$218 billion across various Islamic economic sectors including cosmetics. This is in-line with the increasing number of middle-class Indonesians who have become more Halal-conscious of their purchases.

Most notably, more than US$170 billion was spent Halal food and beverages with many international brands, such as McDonald’s, KFC, Pizza Hut, Burger King, Nestle, and Kraft Heinze Unilever, benefiting from the first-mover advantage by developing substantial Halal propositions in the country.

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