The BPOM license in Indonesia is mandatory for companies that will be manufacturing food products, as well as those that will be importing, selling, or distributing foodstuffs that fall under the regulated categories. It is also necessary for companies that will be involved in the commercialization of other human-use products.
The Indonesian BPOM license is named as such after the agency that issues it, the Food and Drug Authority (Badan Pengawas Obat dan Makanan – BPOM).
Our team briefly outlines the main issues to consider for investors who wish to set up a company in Indonesia that will be involved in the manufacturing and/or distribution of food products.
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Obtaining the Indonesian BPOM license
The BPOM license in Indonesia is required in the case of all companies that are involved in the manufacturing, distribution, or import of regulated food products, but also other regulated products intended for human consumption.
For a company that will be involved in manufacturing food, and selling the products, the food license in Indonesia is mandatory. Some of the categories of products for which companies will need to obtain this license include the following:
- processed foods: for all types of products intended for consumption, irrespective of their preparation or processing method; after a proper application and analysis of the activities, the Food and Drug Authority issues a food license in Indonesia;
- cosmetic products: those categories of products that will be used on the body (for cleansing or beauty purposes, as well as perfumes);
- medicines: included in this category are drugs as well as traditional medicine (plant-based);
- health supplements: a separate category for which a BPOM license in Indonesia is required; can include supplements, minerals, vitamins, etc.
The application process for the BPOM license in Indonesia takes place after the company is incorporated and includes:
- company documents: certificate of registration, tax ID, the business license in Indonesia, documents concerning the imports of products, etc;
- representative documents: when the application for the Indonesian BPOM license is submitted through a representative;
- other documents: these can concern those related to the manufacturing conditions for foodstuffs, cosmetic products, etc.
Depending on the types of products that are manufactured in Indonesia, companies will also need to provide documents that attest to the safe use of the respective products (such as in the case of cosmetics or medicinal products). Our team will give you more details about your application dossier upon request.
If you are interested in immigration to Indonesia to start a food business, our immigration lawyers in Indonesia can answer your questions about medium and long-term residence.
Running a company in Indonesia
Apart from observing the conditions for licensed business operations, company owners in Indonesia should also be concerned with the ongoing tax and compliance requirements.
Our agents specializing in company formation in Indonesia highlight some of the most important taxes for companies, including those in the food business:
- 22% corporate income tax rate;
- 11% value-added tax rate; this rate is 0% in certain cases;
- 0.24% to 1.74% employer’s contribution to the work accident protection scheme, along with other contributions.
Our accountants in Indonesia can give you more details about these taxes. We provide complete solutions for companies in the food sector that have obtained their Indonesian BPOM license.
Contact our team if you want to open a company in Indonesia and need assistance when applying for a food license in Indonesia. We offer complete guidance and representation as needed throughout the application process.