Have a Cosmetics Business? This is the Permit Requirement!

Corporate Secretary Service Indonesia – The cosmetics industry sector in Indonesia has experienced rapid development lately. The number of influencers, beauty vloggers, and creators competing to create their own cosmetic brands certainly increases the public’s enthusiasm for buying cosmetic products. Of course, this condition affects the demand for cosmetic products in Indonesia.

However, people must be aware of the cosmetics on the market as consumers. Cosmetic products must be legalized by the Food and Drug Administration or Badan Pengawas Obat dan Makanan (BPOM) to be declared safe for use by the public. Having a permit from BPOM provides assurance of the product for consumers and benefits business actors. Products that already have a BPOM permit can avoid confiscation by the authorities, and they may no longer circulate in the community.

Cosmetics in the legislation are better known as cosmetics. Cosmetics are materials or preparations intended for use on the external parts of the human body, such as the epidermis, hair, nails, lips and external genital organs, or teeth and oral mucous membranes, especially to cleanse, perfume, change appearance and/or improve body odour or protect or maintain the body in good condition (Article 1 point 1 of the Food and Drug Supervisory Agency Regulation Number 12 of 2020 concerning Procedures for Submitting Cosmetics Notifications (PBPOM 12/2020)).

Business actors must ensure that cosmetics produced for domestic distribution or imported for distribution in Indonesian territory meet the criteria of safety, usefulness, quality, marking, and claims (Article 2 paragraph (1) PBPOM 12/2020). The fulfilment of these criteria must be documented in a Product Information Document (DIP), which must be owned before notification (Article 3 paragraph (1) and (2) PBPOM 12/2020).

Business actors are obliged to distribute cosmetics that have a distribution permit in the form of notification, except for cosmetics imported into the territory of Indonesia for special use in accordance with statutory provisions (Article 4 paragraphs (1) and (2) PBPOM 12/2020).

Types of Cosmetics

Types of cosmetics based on Article 5 of PBPOM 12/2020 are as follows:

Domestically produced cosmetics consisting of:

• Domestic Cosmetics. Domestic cosmetics are made and packaged by the cosmetics industry in the country or made abroad but packaged in primary packaging by the cosmetics industry in the country.
• Contract Cosmetics. Contract cosmetics are cosmetics whose manufacture is delegated to the cosmetics industry based on a contract.

Imported Cosmetics

This is a type of cosmetics made by the Cosmetics industry abroad, at least in primary packaging.

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Notification Application

Notification of cosmetics is a distribution permit required for every cosmetic sold. Three parties can become applicants: the local cosmetics industry, individual businesses/business entities that contract with the local industry, and cosmetics importers (Article 6 PBPOM 12/2020).

Application for domestic cosmetics notification is made by the cosmetics industry.

Document requirements that need to be prepared are as follows (Article 7 PBPOM 12/2020):

1. NIB
2. Copy of ID card/identity card of the directors and/or head of the company
3. Copy of Taxpayer Identification Number
4. Copy of CPKB certificate or certificate of CPKB Implementation
5. A statement letter from the directors and/or leaders of the cosmetics industry stating that they are not involved in any criminal offense in the field of cosmetics.

Application for Contractual Cosmetics notification by individual / business entity.

Document requirements that need to be prepared are as follows (Article 8 PBPOM 12/2020):

1. NIB
2. Copy of ID card/identity card of the directors and/or head of the company
3. Letter of recommendation as an applicant for notification from the Head of the local BPOM UPT
4. Copy of business license in accordance with the provisions of laws and regulations
5. Copy of taxpayer identification number
6. Copy of production contract cooperation agreement document with cosmetic industry that already has CPKB certificate
7. A statement letter from the board of directors and/or head of the company stating that they are not involved in any criminal offense in the cosmetics field.

Cosmetics notification application made by cosmetics importer

Document requirements that need to be prepared are as follows (Article 13 PBPOM 12/2020):

1. NIB

2. A statement letter from the board of directors and/or management stating that they are not involved in any criminal offense related to cosmetics.

3. Copy of ID card/identity card of the directors and/or management of the company

4. Letter of recommendation as an applicant for notification from the Head of the local BPOM UPT

5. Copy of business license in accordance with the provisions of laws and regulations

6. Copy of taxpayer identification number

7. Copy of a valid agency appointment letter that at least includes information regarding:

• Name and address of the manufacturer/Principal of the country of origin
• Name of Importer Brand and/or Name of Cosmetics
• Date of issue
• The validity period of the agency appointment
• The right to carry out notification, import, and distribution from the original country manufacturer/Principal
• Name and signature of the director/manager of the manufacturer/principal of the country of origin

8. Copy of the contractual cooperation agreement between the notification applicant and the cosmetics industry outside the territory of Indonesia

9. Copy of Certificate of Free Sale (CFS) for imported Cosmetics originating from countries outside ASEAN

10. A copy of the good manufacturing practice certificate or statement letter of good manufacturing practice implementation for the cosmetics industry is located in ASEAN countries.

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