Friday, February 3, 2023

How-to understand regulations in Indonesia’s beauty industry

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One of the industrial sectors showing significant growth in Indonesia is health and beauty products. Especially, beauty products have become an indispensable feature of an individual’s lifestyle. In addition, the growing awareness of individual beauty is one of the main driving factors for the use of beauty products in the global market. Together with everyone, both women and men, there is an increase in the use of beauty products in everyday’s life, which complements the growing demand for the global beauty product market. Therefore, changing lifestyles have driven the growth of the global beauty product market.

Governing Laws and Regulation 

  • Minister of Health Regulation (Permenkes) No. 1176/MENKES/PER/VIII/2010 of 2010 concerning Cosmetics Notification. 
  • Head of the Food and Drug Monitoring Agency (BPOM) Regulation No. 19/2015 concerning Technical Requirements for Cosmetics 
  • Food and Drug Monitoring Agency (BPOM) Regulation No. 23/2019 concerning Technical Requirements for Cosmetic Ingredients 
  • Food and Drug Monitoring Agency (BPOM) Regulation No. 12/2020 concerning Procedures for Filing of Cosmetics Notifications

BPOM Permit

The Food and Drug Monitoring Agency (BPOM) issued Regulation No. 12/2020 at the end of June 2020 which provides licensing criteria for business actors engaged in the distribution of cosmetic products in the country. The BPOM is a government agency responsible for protecting the public through the control and supervision of cosmetics. To ensure the safety of consumers, all beauty products, including cosmetics, must be registered before entering the market. If the product is deemed safe and meets the requirements, the BPOM will issue a distribution permit. The cosmetic registration process will take one to two months to complete. Once the BPOM notice is issued, you must import all registered products within six months for the cosmetic product notice to remain in effect. The BPOM will first conduct a building facility inspection to ensure that your product meets all safety requirements and distribution standards.

The permit will take the form of a ‘Notice’ and is designed to ensure that all cosmetic products circulating in Indonesia meet the criteria set by BPOM regarding the safety, quality, design and purpose of a product. Only qualified applicants can get Notifications and there are certain documents that applicants must submit for compliance.

Registration Requirements

Prepare the registration requirements for cosmetic products in Indonesia

Some important points that must be filled in by business actors in a cover letter are as follows:

  • Company legal documents. Documents must show that the company can import or distribute cosmetics. The document must also show that the company has technical experts with knowledge of cosmetic safety.
  • Warehouse. Starting June 2020, the local BPOM would inspect your warehouse. This is to ensure that you have adequate facilities to store and distribute your cosmetic products safely. You will receive a letter of recommendation from the BPOM after passing the exam. This recommendation letter is a required document when registering a product.
  • Statement of Responsibility. The statement provides information on the person in charge appointed by the company to supervise and/or apply for the registration process. Description of the composition and specifications The description must indicate the product specifications. Business actors must provide information on how to use or administer the product. Business actors must also list all materials used to produce products and the function of each ingredient.
  • Free Sales Certificate (CFS). The principal’s site regulatory agency must issue this certificate. The Indonesian Embassy in the producing country must also legalize this document.
  • Good Manufacturing Process (GMP). The Indonesian Embassy in the producing country is required to legalize the certificate.

Halal Certificate 

As a country with a majority Muslim population, halal certification in Indonesia plays an important role for cosmetic products entering the local market. Contact Cekindo to ensure your halal product as soon as your product is registered. Halal certificate is a written fatwa issued by the Indonesian Ulema Council  (MUI) for products that have been declared halal after going through the registration process, auditing and meetings of the MUI Fatwa Commission. The Institute for the Study of Food, Drugs and Cosmetics of the Indonesian Ulema Council (LPPOM MUI) is an independent institution under the MUI tasked with carrying out the halal certification process, starting from registration, document collection, auditing, to making reports before the halalness of materials is determined by the Fatwa Commission.Products that can be issued halal certificates by the MUI include food products, medicines, cosmetics and consumer goods (chemicals, soaps, detergents, leather, water filters, etc.). To identify product categories, companies can refer to the Director’s Decree.

Labeling requirements for cosmetic products in Indonesia

Business actors must also comply with Indonesian labeling requirements for cosmetic products. Product labels and packaging must include the following:

  • Product’s name
  • Product’s function
  • Application method
  • Composition
  • Factory name
  • Importer’s name and address
  • Batch number
  • Net weight Expiration date
  • Any warnings about the ingredients. For example, potential allergic reactions or safety indications for children.

Common Issue

There is a common problem with the registration of cosmetic products in Indonesia. First, when cosmetic product manufacturers are unable to provide Good Manufacturing Practice (GMP) certification. The BPOM only accepts GMP certifications issued by government agencies. As a result, the BPOM does not accept certifications issued by private entities. If the producing country permits GMP certification from a private sector entity, the BPOM may allow it. However, the applicant must provide additional documents.

The second will be the misleading or overclaiming cosmetic product names. The BPOM aims to protect consumers. They will definitely determine whether the name of the cosmetic product can mislead Indonesian consumers. For example, a cosmetic brand may not have the word “rose” in it if the product does not contain roses as an ingredient. Another example is the product name, “Magic White.” In this case, the BPOM considers the word “magic” too promising.

Third, the product formula does not comply with Indonesian regulations. The BPOM also has special regulations regarding the use of ingredients in cosmetic products. They will refuse registration applications for products that do not comply with these regulations. For example, the use of Phenoxyethanol as a preservative. The maximum percentage of Phenoxyethanol allowed in cosmetic products is 1%. If the formula is more than 0.01%, the BPOM will reject the application. The BPOM will also reject the application if the use of materials does not match the product. For example, the BPOM will reject the application of long-lasting cosmetics that use pigments for short-term use.

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