Through this presentation you will get an overview, process and document details regarding the cosmetics industry and product registration in Indonesia. The presentation explains about cosmetics category, market demand, import regulations, halal certification, and how to register the cosmetic product legally in Indonesia. Cekindo will help you to do the product registration especially for cosmetics product in Indonesia, visit www.cekindo.com.

1. Doing Business in Indonesia:
Cosmetic Industry and Product Registration in Indonesia
Jakarta, August 2016

2. Contents
Background of Cosmetics in Indonesia
Cosmetic Regulations
Company Profile
2
Indonesian Cosmetic Industry
Cosmetic Product Registration

3. What is Cosmetics in Indonesia?
According to the BPOM (National Agency of Drug and Food
Control in Indonesia), cosmetics is substance or preparation
intended to be used on the outside of the human body
(epidermis, hair, nails, lips and genital organs exterior), or
teeth and oral mucous membranes, especially to clean,
perfume, change the appearance, and / or improve body
odor and or protect or maintain the body in good condition.
3

4. Cosmetic Category in Indonesia
(1)
• Creams, emulsions, lotions, gels and oils for skin (hand, face,
feet, etc.)
• Face masks (with the exception of chemical peeling products)
• Tinted bases (liquids, pastes, powders)
• Make-up powders, after-bath powder, hygienic powders, etc
• Toilet soaps, deodorant soaps, etc
• Perfumes, toilet waters and eau de Cologne
• Bath or shower preparations (salts, foams, oils, gels, etc)
• Depilatories
• Deodorants and anti-perspirants
• Hair Care products
4

5. Cosmetic Category in Indonesia
(2)
• Shaving product (creams, foams, lotions, etc)
• Product for making-up and removing make-up from face and
the eyes
• Product intended for applications to lips
• Product for care of the teeth and the mouth
• Product for nail care and make-up
• Product for external intimate hygiene
• Sunbathing products
• Products for tanning without sun
• Skin Whitening products
• Anti-wrinkle products
5

6. Contents
Background of Cosmetics in Indonesia
Cosmetic Regulations
Company Profile
6
Indonesian Cosmetic Industry
Cosmetic Product Registration

7. Cosmetic Industry in Indonesia –
Market Demand
7
• The cosmetics sector has recently seen 10% - 15% growth due to
increases in disposable income and aggressive marketing
efforts. While people in the urban areas of Indonesia are the
biggest buyers of cosmetic products, the rural population is
showing higher interest in personal care products.
• Domestic manufacturers are successful in the middle and low-end
market segment, and supply most of the local demand.
• The large Muslim population in Indonesia is a huge potential
market for halal beauty products, with a growing number of
consumers trying such products in 2015. The majority of halal
beauty products is still offered by local manufacturers.
Source
US Commercial Service: Cosmetic and Toiletries Market Overview in 2015
www.cekindo.com

8. Cosmetic Industry in Indonesia –
Market Demand
8
• The sales prospects remain good with steady growth projected
over the next two years.
• The demand for cosmetics and toiletries has increased
substantially over the past years. Imported cosmetics with
international brands have strong hold of the market, with about
70% share. Local brands make up about 20% of the market while
the rest belongs to illegal imports, which are mostly from China.
• The international brand market is mostly dominated by U.S. and
European companies such as Unilever and L’Oréal. Despite rapid
growth in the industry and sharp competition among brands,
Indonesia is still a good potential market for imported cosmetics.
Source
US Commercial Service: Cosmetic and Toiletries Market Overview in 2015
www.cekindo.com

9. Cosmetic Industry in Indonesia –
Import Value
9
• According to BPS (Central Bureau of Statistics in Indonesia), the 3-
years figures of imported cosmetics and toiletries in Indonesia
stated as follows:
– In 2013 for USD 541.6 million
– In 2014 for USD 483.9 million
– In 2015 for USD 453.4 million
• The total import value slightly decreased in 2014 and 2015,
primarily due to the drastic fall in Rupiah/Dollar currency
exchange, where Rupiah has lost 10% of its value against the
dollar since November 2013

10. Cosmetic Industry in Indonesia –
Skin Care
10
• In the cosmetics sector, skin care products accounted for more than
76% of total imports. Business sources predict that the market size and
sales for skin care products will continue to increase due to the growing
awareness of the value of skin-care treatment for both males and
females.
• Cosmetics play an increasingly important role in the daily lives of
Indonesians and the skincare market, meanwhile, is growing so much
that cosmetic companies are even starting to take aim at men.
• An increasing Cosmetics, Toiletries and Skincare number of men, as well
as working women, are more concerned about their skin care, driving
the demand for men-oriented products, as well as anti-aging and skin
whitening products. The market for both local and imported anti-aging
and whitening products still has potential to grow.

11. Cosmetic Industry in Indonesia –
Wedding and Spa
11
• The growth potential is also affected by increased demands from the
service industry such as beauty parlors and spas.
• More people seek professional help for facial and skin treatment,
stimulating the growth in sales for skin care products. More new
upscale beauty salons and skin care clinics were opened in shopping
centers. The number of professional hair care salons selling specialty
products has also increased.
• Wedding spa or pre-wedding body and beauty treatment has become a
trend in Indonesia, contributing to the growth of the skin care market.
• The Indonesian spa industry is widely recognized particularly in the
hotel and resort areas. There are increasing opportunities for spa
aromatherapy supplies, since local producers lack the research
capabilities to develop quality products.

12. 12
Skincare
Products
Massage
Products
Haircare
Products
Best Sales Prospect

13. Contents
Background of Cosmetics in Indonesia
Cosmetic Regulations
Company Profile
13
Indonesian Cosmetic Industry
Cosmetic Product Registration

14. 14
Cosmetics Regulations
The latest regulations issued by the Head of BPOM regarding
cosmetics:
• Number 18 Year 2015 : Technical Requirements for
Cosmetic Materials
• Number 19 Year 2015 : Technical Requirements for
Cosmetics
• Number 1 Year 2016 : Technical Guidelines for Control of
Cosmetic Advertising
• Number 11 Year 2016 : Application Guidelines for Hygiene
Sanitation and Documentation in Cosmetic Industry Group
B
.

15. 15
Import Regulations
• Based on BPOM regulations Number 27 Year 2013
regarding The Control of Food and Drug Entry to
Indonesia, stating that for all food and drug, includes
cosmetics entering Indonesia shall possess:
– Product license
– Fulfill prevailing import law
– Obtain approval from the Head of BPOM for Import
Notification Letter (SKI) that is valid for one-time of
importation.
• There is no formal import barrier on cosmetics. The import
duty for cosmetics is 10% plus 10% VAT. Rates are 0-5% for
products originating in ASEAN FTA members.
.

16. 16
Halal Certification
• Halal certificate is issued by the Indonesian Council of
Ulama (MUI) based on assessment conducted by the
Assessment Institute for Foods, Drugs, and Cosmetics of
The Indonesian Council of Ulama (LPPOM MUI).
• Government bodies responsible for food controlling:
– Ministry of Agriculture for meat and animal based
foods
– National Agency for food and drug control (BPOM) for
food packaged product
• It is mandatory to have Halal certification for food
products, however for cosmetics products is not
mandatory yet.
.

17. Contents
Background of Cosmetics in Indonesia
Cosmetic Regulations
Company Profile
17
Indonesian Cosmetic Industry
Cosmetic Product Registration

18. Cosmetics Registration
Overview
• The role of the National Agency of Drug and Food Control
(Indonesian acronym BPOM) in to regulate and control the
registration, distribution, and quality of cosmetics.
• All cosmetic products (manufactured locally or imported) shall
be registered at BPOM to obtain notification of cosmetic
product to be able to be distributed legally in Indonesia.
• The cosmetic products shall be registered under Indonesian
company, as distributor or agent in Indonesia (it is not allowed
to be registered by foreign company or individual).
18

19. • The product license is valid for 3 years only under 1 company.
Meaning that after registration, this company will receive
some kind of exclusivity on the products, since this company
holds the product license and without their approval, the
principal or exporter is not able to change the company or
make any registration under the other distributor.
• Cosmetics registration in Indonesia takes around 1,5 - 2
months. The registration lifetime of cosmetics is until 3 years
as long as still meeting the prevailing provisions and
extendable through re-registration of cosmetics product.
19
Cosmetics Registration
Timeframe

20. Products Registered at BPOM
by end of July 2016
20
7 days ago From 201630 days ago
Food & Beverage
Food Supplement
Cosmetics
Traditional Drug Food Supplement
Drug

21. 21
Cosmetics Registration Process –
Legal Entity Registration
Fill out legal entity
online registration
form
1
Submit legal entity
hard copy
documents to BPOM
2
Verification process3
Login data is
activated and able to
register products
4a Returned to be
completed or
corrected
4b
Complete Incomplete

22. 22
Cosmetics Registration Process –
Product Registration
Fill out product
online registration
form
1
Submit product hard
copy documents to
BPOM
2
Payment to BPOM3
Payment verification4 Product ID issued5
Incorrect
Correct
Rejected to be
corrected or
completed
7bBPOM
Notification
issued
7a
Verification template
and formula
evaluation
6
Not suitableSuitable

23. 23
Registration Requirements –
Company documents
• Article of Association and its’ amendments
• Deed of Establishment and its’ amendments
• Domicile letter
• Tax ID
• Business License – stating cosmetics trading
• Company Registration Certificate
• Import License – which covers cosmetics product

24. 24
Registration Requirements –
Product Documents
• Letter of Authorization (LoA) – from Principal / Exporter to
Distributor / Agent in Indonesia, shall be legalized by
Indonesian Embassy in the origin country
• Certificate of Free Sales (CFS) from origin country –
legalized by Indonesian Embassy in the origin country
• Good Manufacturing Procedure (GMP)
• Certificate of Analysis (CoA) – with detail % of each
ingredients
• Relationship Letter – if the Principal is different with the
Manufacturer

25. 25
Registration Requirements –
Language and Labelling
LANGUANGE REQUIREMENT
• Bahasa Indonesia or English is accepted.
LABELLING REQUIREMENTS
• Each product must state Notification Number
• Production code
• Expiry date
• Manufacturer name and address
• Importer and distributor name and address

26. Contents
Background of Cosmetics in Indonesia
Cosmetic Regulations
Company Profile
26
Indonesian Cosmetic Industry
Cosmetic Product Registration

27. 27
Our Vision
To be leading consulting firm of business services
to clients expanding and operating in Indonesia.
Our Mission
To provide full-range of market-entry and
corporate services to enable our clients to focus
on their core business and activities in Indonesia
and beyond.
PT. Cekindo Bisnis Grup is a
leading consulting firm of
Market-Entry and Corporate
secretarial services to clients
expanding and operating in
Indonesia and further to
Southeast Asia.
Our Values
Client-focused
Excellence performance
Knowledgable locally
Integrity moral
Normative operations standards
Delivered on-time
One stop services provider
Company Profile

28. 28
Our main services:
Business Set
Up
Business
Process
Outsourcing
Local
Representation
 Company
Registration
 License & Product
Registration
 Market Research
& Analysis
 Local Partner
Selection
 Trade Mission
 Recruitment & HR
Establishment
 Payroll Processing
 Accounting & Tax
Reporting
 Visa & Work
Permit
 Mystery Shopping
 Local Distributor
& Partner
 Project
Management &
Coordination
 Buying Agent
 Virtual &
Serviced Office
Cekindo Services

29. 29
Senior Advisor
Prof. Dr. Rahardi Ramelan
Relevant Experience
Mr. Ramelan is currently Senior Advisor at PT Cekindo Bisnis Grup. Hi is a Research Professor at the Agency for the
Assessment and Application of Technology. The honorary degree of Doctor Honoris Causa from Monash
University, Australia and Northeastern University Boston.
 Minister of State for Research and Technology of the Republic of
Indonesia and Chairman of the Agency for Assessment and Application of
Technology (BPPT) in the Seventh Development Cabinet of the Republic
of Indonesia.
 Minister of Industry and Trade in the Development Reforms Cabinet of
the Republic of Indonesia and Chairman of National Logistic Agency.
 Deputy Chairman for Industrial Analysis and Vice Chairman of the
National Development Planning Agency of the Republic of Indonesia
 Several management positions and responsibilities related to Indonesian
Aviation industry, the Weapon industry.
Prof. Dr. Rahardi Ramelan
Profile Overview

30. 30
Principal Consultant
Michal Wasserbauer
Michal is currently Principal Consultant at PT Cekindo Bisnis Grup. He has more than 5 year‘s experience in the
Corporate Market research, Strategy and Evaluation Expansions, Business Consultancy, and Preparation of
Business Feasibility Studies. He has worked for various industries, namely Grocery and Marchandise Retail,
Energy, Medical Device, Heavy and Automation Industries.
+6281282300584 |  michal.wasserbauer@cekindo.com
Michal Wasserbauer
 Market opportunities valuation
 Investment analysis
 Performance management
 Feasibility studies
 Strategy planning
 Stakeholder management
 Marketing consultancy
Profile Overview
Relevant Experience
Relevant Skills
 Multinational grocery and general merchandise retailer: Capital
Investment Appraisals
 World‘s largest student and recent graduates-run organisation:
Financial Controller
 International consultation company: Market Expansion Consultant

31. 31
Principal Consultant
Nurmia Agustina
Nurmia is currently Principal Consultant at PT Cekindo Bisnis Grup. She has wide experience in the areas of Business
Development, Legal Corporate Restrictions, Business Consulting, Project Management, Market Development &
Entry Strategy, Sales & Distribution, Management Strategy, Recruitment, Visa & Work Permit, and Change
Management. She has worked for various industries, namely Energy & Resources, Telecommunication, Retail,
Pharmaceutical & Medical, Financing, Non-Profit, IT and Heavy Industries.
+628119691987 | nurmia.agustina@cekindo.com
 International Management company: Management & Legal
consultant
 Chamber of Commercial: Head of Business Processing Section
Nurmia Dwi Agustina
 Corporate law
 Outsourcing processes
 Company formation
 Acquisitions
 Project Management
 Competitive Analysis
 Business Planning
 Risk Management
 Talent Management Strategy
 Recruitment
 Visa & Work Permit
 Change Management
Relevant Experience
Relevant Skills
Profile Overview

32. 32
Selected Clients

33. PT. Cekindo Bisnis Grup
Grand Slipi Tower 9th floor
Jl. Letjend. S. Parman Kav 22-24
Jakarta - 11480
Indonesia
 info@cekindo.com
 +6221 80660999