Permits and certification in Indonesia

Introduction

Indonesia, with its large consumer base and rapidly developing economy, is an excellent choice for foreign investors looking to expand their trading business. To open a business in Indonesia and distribute your products, you must comply with local regulations — one of which is obtaining the appropriate permits and certifications. In this article, we’ll cover which types of products require certification in Indonesia and which do not.

What categories of products do not require mandatory certification?

Not all goods need to be certified in Indonesia — particularly those not associated with significant health, safety, or environmental risks. These may include:

  1. Handcrafted goods (figurines, decorative items, unique textiles such as scarves or rugs)

  2. Clothing and footwear (standard items not falling into special categories)

  3. Industrial products used exclusively in production and not sold to end consumers (e.g. raw materials, semi-finished goods, equipment, spare parts)

  4. Goods supplied only within B2B deals (equipment, machinery, etc.)

However, even if certification isn’t required, some documentation may still be needed for export — such as certificates of origin and product quality. Also, the manufacturer or supplier is still responsible for product safety and quality. If consumer complaints or product issues arise, inspections and fines are possible.

What categories of products require mandatory certification?

If your products could affect consumer health, safety, or the environment, certification is mandatory. This applies to:

1. Cosmetic products
2. Food and beverages
3. Pharmaceuticals and traditional Indonesian medicines (jamu)
4. Medical devices and supplies
5. Children’s products
6. Electronics and home appliances
7. Chemicals and industrial goods

Key certification types in Indonesia

There are many types of certifications in Indonesia covering a variety of sectors. Some are mandatory for the domestic market:

  1. SNI (Standar Nasional Indonesia) – National standard for industrial, electrical, construction, and consumer goods

  2. BPOM (Badan Pengawas Obat dan Makanan) – Required for food, pharmaceuticals, cosmetics, and medical devices

  3. Halal Certification (MUI) – For food, beverages, cosmetics, and other products governed by Islamic law

  4. Toys Certification – Ensures the safety of toys and children's goods

  5. SPP-IRT – For small-scale/home-based food manufacturers

  6. Electrical Safety Certification – For electrical and electronic equipment

There are also optional but recommended certifications, especially for exports:

  1. HACCP (Hazard Analysis and Critical Control Points) – Food safety certification, optional for domestic sales but often required for export.

  2. Eco Label Certification – Demonstrates compliance with environmental impact standards

  3. ADR Certification – Required for transporting hazardous materials (mainly chemical products)

If your company, as a manufacturer or importer, plans to sell food products, medicines or cosmetics in Indonesia, it is important to pay special attention to BPOM as the main type of certification. Let's take a closer look.

What is BPOM?

BPOM (Badan Pengawas Obat dan Makanan) is Indonesia’s National Agency of Drug and Food Control. It regulates the safety and quality of food, drugs, cosmetics, and other categories of products.

BPOM approval is mandatory for any product manufactured in or imported into Indonesia that falls under its authority. BPOM registers products, checks safety standards, and conducts laboratory testing for harmful substances. It also monitors the market — counterfeit or unsafe products can be recalled and penalized.

To obtain BPOM certification, a company must:

1. Register with BPOM and prove it has the necessary business permits

2. Ensure packaging and labeling meet standards (ingredient list, expiration date, usage instructions, etc.)

3. Submit product samples to a BPOM-accredited lab4

4. Undergo inspection and testing

If the product passes, BPOM issues a certificate and a registration number that must appear on the product label. This certificate must be regularly renewed (validity period depends on the product category).

Selling products without BPOM certification can result in large fines (up to hundreds of millions of rupiah) and even criminal charges for business owners.

Conclusion

Doing business in Indonesia requires the appropriate permits and certifications — especially if your business involves trading. While the process may seem complex, thousands of foreign companies have already entered the Indonesian market and unlocked its potential. If you're planning to start a business in Bali or elsewhere in Indonesia, our consulting agency can help with business registration, opening bank accounts, accounting services, and other key processes. Let Good Luck Group make your business dreams in Bali a reality!

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