According to Statista, Indonesia’s cosmetics market revenue is expected to reach $1.94 billion in 2024, with an annual growth rate of 4.86% from 2024 to 2029. With the rise of the middle class and increasing demand for halal beauty products, the Indonesian cosmetics market is poised for growth.
Indonesia has a large young consumer base, with many preferring simple makeup or a natural look, increasingly viewing halal cosmetics as an essential skincare requirement.
As a signatory of the ASEAN Cosmetics Directive (ACD), Indonesia mandates that cosmetics sold locally must undergo product notification.
Overview of the ASEAN Cosmetics Directive
The ASEAN Cosmetics Directive (ACD) is part of the ASEAN Harmonized Cosmetic Regulatory Scheme (AHCRS), aimed at establishing uniform safety and quality standards for cosmetics within ASEAN. Member countries include Malaysia, Thailand, Vietnam, Cambodia, Laos, Singapore, Indonesia, the Philippines, Brunei, and Timor-Leste (under consideration).
Implemented in 2008, the ACD allows cosmetics produced or sold in one member country to be marketed in others, provided local notification requirements are met. However, companies must still notify products in the country where they are marketed.
Cosmetics Notification Regulations in Indonesia
- Document Name: Regulation Concerning Cosmetic Notification, effective January 1, 2011.
- Document Name: Procedure for Submission of Cosmetics Notification, effective October 5, 2022.
In addition to notification requirements, Indonesia has established a comprehensive regulatory framework for cosmetics, covering production, importation, Good Manufacturing Practices (GMP), ingredient requirements, labeling, claims, advertising, Product Information Files (PIF), and post-market surveillance. Furthermore, cosmetics sold in Indonesia must obtain halal certification, effective from October 17, 2021, with a five-year grace period.
Regulatory Authority
The Indonesian regulatory authority for cosmetics is the National Agency of Drug and Food Control (BPOM). BPOM ensures that cosmetics sold in Indonesia meet safety, quality, and efficacy standards and is responsible for issuing production licenses and approving product notifications (both must be obtained before marketing).
Product Notification Holders
According to Indonesian cosmetics regulations, product notifications must be completed by a local company. Therefore, exporters can establish a subsidiary in Indonesia, partner with a reliable local distributor, or engage a third-party consulting firm as the notifier.
Cosmetics Notification Process
- Document Preparation and Compliance Review: Companies must prepare and review all necessary documents for submission to BPOM.
- Required documents include Free Sale Certificates (CFS) for non-ASEAN imports and GMP certificates, which must be notarized and certified in the country of origin. Additionally, product formulations and packaging must comply with Indonesian regulations.
- Notifkos Account Registration: If the importer’s subsidiary or local distributor does not have a notification account, they must register in the Notifkos system before notification. The registration process includes submitting company information and obtaining a recommendation letter from UPT BPOM. The entire account registration process takes 2-3 months.
- Cosmetics Notification and Fees: After completing compliance review and Notifkos account registration, the cosmetics notification process can begin. Notification materials must be submitted online, and upon payment, the applicant will receive a notification ID number.Official application fees are as follows:
- For products produced in non-ASEAN member countries: 1,500,000 Indonesian Rupiah (approximately 685 RMB).
- For products produced in ASEAN member countries: 500,000 Indonesian Rupiah (approximately 228 RMB).
The Indonesian National Agency of Drug and Food Control (NADFC) will conduct a formulation review, and upon approval, a notification number will be issued within 14 working days after payment (though it may take longer in practice). The entire notification process takes 3-4 months (including Notifkos account registration). The notification number is valid for three years and can be renewed.
Key Points: Product functions, usage instructions, and warning information on labels must be in Indonesian.
Documents Required for Notification:
- Free Sale Certificate (CFS): Must be notarized and certified.
- Good Manufacturing Practice (GMP) certificate: Must be notarized and certified.
- Letter of Authorization (LoA): Authorization document from the product owner to the notifier (the company responsible for marketing the product).
- Processing Agreement: Applicable for contract manufacturing situations.
- Ingredient List.
- Intended Use/Claims.
- Product Information.
- Other documents required by BPOM.
Product Information File (PIF/DIP) Requirements: After submitting the notification application, the product notifier is responsible for preparing the Product Information File (PIF/DIP) and providing it during inspections by relevant authorities.
However, recent news indicates that BPOM may require companies to prepare PIF/DIP in advance starting January 2025. As the BPOM system closes for a period each December, we will continue to monitor developments after the BPOM system reopens on January 2, 2025.
Working with كيسي بيوتي
Let’s work together to create a bright future for your brand. We will assist you with the necessary legal documentation for cosmetics compliance. Our factory holds ISO 22716 and CMPC certificates, ensuring that your products meet international standards without any issues.