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Selling Tobacco in Indonesia

Selling Tobacco in Indonesia

Foreign investors who want to open companies in the retail sector in Indonesia can set up various types of shops. Among these, shops that sell fast-moving consumer goods, simply known as FMCG products, are among the most prolific. The FMCG sector is comprised to various products, however some of them are subject to special sanctions imposed by the authorities. The sale of tobacco products, for example, must comply with certain requirements in Indonesia.

If you are interested in selling tobacco in Indonesia, you must first get acquainted with the legislation providing for the sale of such products. You can also rely on our Indonesia company incorporation agents if you want to set up a tobacco shop in this country.

There is no mandatory requirement to immigrate to Indonesia in order to open a business in this field, however, certain foreign investors may also wish to relocate. 

Laws related to selling tobacco in Indonesia

All Indonesian companies interested in selling tobacco must comply with the following laws:

  • the Tobacco Control Act, which was renewed in 2012 and represents the most important law on the sale of tobacco products;
  • the Ministry of Health Regulations on Non-smoking Areas;
  • the Ministry of Health Regulations on Heath Warnings and Health Information on Tobacco Product Packages.

Indonesian companies must also respect the broadcasting laws which prohibit to some extent the advertisement of tobacco and other related products in the following:

  • television and radio;
  • newspapers and magazines;
  • on the Internet on certain websites.

Tobacco shops are allowed to advertise their products on their points of sale.

Requirements for selling tobacco in Indonesia

It should be noted that the sale of tobacco products in Indonesia is subject to certain requirements, such as:

  • the packages must contain health warnings;
  • the packages must also contain information on the content and emissions of the products.

Under the new Tobacco Act of 2012 cigarettes can no longer be categorized by using words like ‘ultra light’, ‘light’, ‘slim’ or ‘premium’.

Tobacco shops in Indonesia are prohibited to sell cigarettes to minors. Also, Indonesia is part of the International Convention on Tobacco Control.

For full information on the regulations related to selling tobacco in Indonesia, please contact us. We can also assist those who want to open other types of companies in Indonesia.

If you want to enter the tobacco business after you immigrate to Indonesia, we can assist you.