In Indonesia, if you want to develop a business or distribute products, you have to register certain permits and register your products (for certain products).
Trade Business License (SIUP) / Business Licenses
A business license is required for all business and corporate activities, including foreign-owned companies (PT PMA). A business license will also be issued with the NIB if your business does not require another license, which depends on your company’s business sector.
Type of Business License
- General Business License. Companies engaged in general trading, other goods or services.
- industrial business license Companies engaged in manufacturing industries other than oil, gas and geothermal energy.
- Construction Business Permit. Companies engaged in other industries, such as construction.
Since September 2019, 45 Additional Business Sectors (KBLI) are no longer required to obtain additional licenses. Only NIB and License required to start direct business operations in Indonesia.
Any business wishing to import goods into Indonesia is legally required to obtain a special permit – General Import Permit (API-U) or Manufacturer Import Permit (API-P), depending on what product you are dealing with.
Medical & BPOM Distribution License
Foreign and local companies intending to sell medical devices in Indonesia are required to obtain two licenses: an Indonesian medical distribution permit and a medical device registration. For an Indonesian medical distribution license, you must set up your own local entity in Indonesia or use a distributor with a medical device distributor license issued by the Ministry of Health. In addition, you also need to obtain a BPOM distribution permit during the product registration process.
Cosmetic Distribution License
Before any cosmetic product is permitted to be distributed and sold in Indonesia, a BPOM distribution license is required. To obtain a BPOM distribution permit, you must register cosmetic products at the Food and Drug Supervisory Agency (BPOM). In addition, every importer is required to keep a Product Information File which contains information on the import and distribution of cosmetic products.
Food & Beverages Distribution License
To be able to distribute and sell food and beverages throughout Indonesia, you need to register your food and / or beverage products at BPOM to obtain a BPOM distribution permit.
Health Supplement Distribution License
If you wish to distribute and sell food supplements and / or traditional medicines in Indonesia, you must follow a similar registration process at BPOM to obtain BPOM distribution permits.