PRODUCT REGISTRATION AND IMPORT IN INDONESIA 

Written by Ananta Cahya Adhikara on 09/07/2024
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.

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Introduction

The Indonesian market presents a lucrative opportunity for manufacturers, both local and foreign, given its vast territory, abundant resources, and sizable customer base. However, ensuring market safety and sustainability requires intervention from the Indonesian government. Product registration, mandated by the government, serves as a crucial check to ensure that products meet safety standards, maintain quality, and do not disrupt the local economy. Vigilance, especially for imported products, is essential to safeguard the Indonesian economy and maintain balance between foreign and local manufacturers. 

Definition

Product registration in Indonesia refers to the mandatory process wherein all goods, whether locally manufactured or imported, must be registered under the Indonesian government’s supervision. This process aims to ensure product safety, quality, and adherence to regulatory standards. Regulatory bodies such as the National Agency for Drug and Food Control (BPOM), the Ministry of Health (MoH), and the Ministry of Trade (MoT) oversee registration based on the type of product and its intended use. 

The Importance

Product registration is vital to maintain a harmonious balance between foreign and local manufacturers, preventing economic disruptions in Indonesia’s market. It ensures that all products entering the market meet safety standards, protecting consumers and supporting sustainable economic growth. For imported products, registration helps mitigate potential harm to local industries and ensures fair competition. Without proper registration, the uncontrolled circulation of goods could lead to inflation, unfair competition, and other adverse economic consequences. 

The Best Time to Apply

The best time to initiate product registration is before entering the Indonesian market. Manufacturers should begin the registration process well in advance of their planned market entry to allow for sufficient time to navigate regulatory requirements and obtain necessary permits. Starting early ensures a smoother entry into the market and minimizes delays that could impact business operations. 

Benefits

Securing product registration in Indonesia offers several benefits for manufacturers: 

  1. Market Access
    Enables manufacturers to gain access to the Indonesian market, tapping into its vast consumer base and expanding their business opportunities.

  2. Compliance
    Ensures compliance with Indonesian regulations, demonstrating a commitment to product safety and quality standards.

  3. Consumer Safety
    Registered products undergo thorough scrutiny to ensure they meet safety requirements, protecting consumers from potential harm.

  4. Legal Protection
    Provides legal protection for manufacturers, mitigating the risk of penalties or legal consequences for non-compliance with Indonesian laws.

How to / The Process

The process of product registration and importation in Indonesia involves several key steps: 

  1. Preparation
    Determine pricing, shipping arrangements, and necessary documentation before initiating the registration process.

  2. Document Preparation
    Gather all required documents, including product specifications, testing reports, business licenses, and other relevant paperwork.

  3. Regulatory Compliance
    Ensure compliance with regulations enforced by regulatory bodies such as BPOM, MoH, MoT, and Customs, meeting safety, quality, and labeling standards.

  4. Submission
    Submit the required documents to the appropriate regulatory authorities for review and approval.

  5. Review and Approval
    Regulatory agencies review the submitted documents, conduct inspections if necessary, and issue permits/licenses upon compliance verification.

  6. Importation
    Once approved, import products into Indonesia through proper channels, adhering to customs procedures and paying applicable tariffs and taxes.

  7. Distribution
    Distribute registered products in the Indonesian market, ensuring compliance with local regulations and standards.

How We Can Help

Our firm offers comprehensive support to businesses navigating the complexities of product registration and importation in Indonesia. With expertise in legal, compliance, tax, accounting, and business consulting, we provide tailored solutions to ensure successful market entry. As a local partner, we assist in obtaining necessary permits and licenses, navigating regulatory requirements, and facilitating smooth operations. Additionally, we offer support to offshore manufacturers in establishing their presence in Indonesia, streamlining processes, and mitigating challenges. Trust us to provide the expertise and assistance needed to thrive in the Indonesian market. 

FAQs

No, registration is specific to the relevant institution. Each product only needs registration with the institution that governs its category. For instance, food products require registration with BPOM, while medical devices fall under the purview of the Ministry of Health (MoH). It’s essential to understand the regulatory landscape and ensure compliance with the appropriate authority to facilitate market entry smoothly. 
While products registered elsewhere may meet certain standards, Indonesia has its own regulations and standards. Thus, products must undergo registration with Indonesian authorities to ensure compliance, including adherence to Indonesian standards such as SNI (Indonesian National Standard). This ensures that products meet local safety, quality, and efficacy requirements, fostering consumer trust and market integrity.

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