Open Indonesian Business for Sale of Food,Drinks and Tobacco

Updated on Tuesday 02nd April 2019

Rate this article
based on 2 reviews


Open Indonesian Business for Sale of Food,Drinks and Tobacco Image
Those who want to open companies in Indonesia can set up various types of businesses in the retail industry. Among these, companies for selling food, beverages and tobacco generate significant profits thanks to the Indonesian population which is one of the largest at a regional level.

There are various requirements which need to be respected when opening a business for selling food, beverages and tobacco in Indonesia, especially for foreign investors who need to comply with specific business regulations.

Below, our Indonesia company incorporation specialists explain how to register a business for selling food, beverages and tobacco in this country. You can rely on us for assistance with the registration of a retail company for the sale of food, beverages and tobacco in Indonesia.
 

Company registration in the retail industry in Indonesia


The first step for opening a business for selling food, beverages and tobacco in Indonesia is to register a company with the Trade Register. Foreign investors must first submit an investment plan with the Investment Coordinating Board if they want to register a foreign-owned limited liability company in Indonesia.

Our company formation advisors in Indonesia can help with the registration of such a business form on behalf of foreign entrepreneurs interested in setting up a company for selling food, beverages and tobacco.
 

Regulations for businesses selling food and beverages in Indonesia


In order to create a business for selling food, beverages and tobacco in Indonesia, the business owner must comply with a few requirements and obtain various licenses, as imposed by the National Agency of Food and Drug Control (BPOM).

Companies selling foodstuff in Indonesia must:
 
  1.           appoint a local agent or distributor if they are registered as branches of foreign companies in Indonesia;
  2.           if they are registered as limited liability company, they must obtain import permits for imported products;
  3.           the products must also be registered with the BPOM – a procedure which is completed in 3 stages;
  4.           the products to be sold must be accompanied by specific documents which are audited and assessed;
  5.           the company must undergo an inspection from the Ministry of Health which will issue the registration number of the retailer.

Our local agents can offer more information on the requirements related to setting up a business in Indonesia for selling food.

For the sale of beverages in an Indonesian shop, specific steps and licenses need to be obtained. At first it is important to know that there are several types of drinks acknowledged by the law. These are:
 
  •           class A beverages which contain at least 5% of ethanol or alcohol;
  •           class B beverages which contain ethanol or alcohol in percentages between 5 and 20;
  •           class C beverages with alcohol or ethanol contents of 20% and up to 55%.

A beverage trading license is required for the sale of such drinks in Indonesia. The same BPOM issues the beverage license.

The regulations related to the sale of alcoholic beverages can be explained by our company registration representatives in Indonesia. They can also explain how to obtain a license for selling such products.
 

The sale of tobacco products in Indonesia


The opening of a business for selling food, beverages and tobacco in Indonesia implies obtaining a separate license for selling tobacco and related products. The retail license allows a company to sell tobacco products, however, there are a few aspects to be considered.

Indonesian shops can sell tobacco only to adults. These shops must also respect a few regulations related to the advertising of such products, while the packages must be labeled in accordance with the law.

The good news is the Tobacco Law in Indonesia is less restrictive compared to other neighboring countries.
 

Documents needed for opening a business for selling food, beverages and tobacco


Upon the registration of a company for selling food, beverages and tobacco in Indonesia, the following documents must be submitted with the BPOM:
 
  •           a certificate of free sale which is issued by the distributor of the products (if they are imported);
  •           information about the ingredients in the foodstuff and beverages to be sold by the store;
  •           certificates of analysis of finished products and raw materials and ingredients are also required;
  •           labeling, packaging and product code explanatory notes must accompany the documentation.

The company will also need an import permit for imported food and beverages.

If you want to start a business for selling food, beverages and tobacco in Indonesia, do not hesitate to contact our company registration agents for assistance with the entire procedure.