Open Indonesian Business for Selling Coffee, Tea and Spices

Updated on Monday 08th July 2019

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Retail is one of the most prolific industries of the Indonesian economy. Foreign investors can also set up shops in which they can sell various items, including food products, as long as they respect the local regulations. As in any other Asian countries, spices are quite in demands in Indonesia, therefore, starting a business for the sale of spices, but also tea and coffee can be a good investment idea.

Those who plan on setting up a company for selling coffee, tea and spices in Indonesia will need to complete the regular business registration procedure followed by obtaining certain licenses.

Our company formation consultants in Indonesia can help foreign entrepreneurs interested in opening a business for selling coffee, tea and spices in Indonesia.
 

Company registration for selling coffee, tea and spices in Indonesia


The first step to respect when opening a business for selling coffee, tea and spices in Indonesia is to select an appropriate structure and register it with the Companies House in Indonesia. It is important to know that only limited liability companies can obtain import licenses in Indonesia, therefore this the suitable business form when opening a company for selling food and beverages here.

Here is what foreign investors need to consider upon Indonesia company incorporation:
 
  1. they can set up various a private company in association with a local partner who is an Indonesian resident;
  2. they can also register fully foreign-owned companies under the form of limited liability companies (PT PMA) with higher share capital;
  3. the minimum amount required when starting a PT PMA in Indonesia is approximately 4,000 USD;
  4. foreign investors must also submit an investment plan with the Investment Coordinating Board in Indonesia, no matter the industry they want to operate in;
  5. following the company registration procedure, various licenses and permits need to be obtained.

If the company plans on importing or exporting coffee, tea, spices or all of these products, the owners must register with the Indonesian Customs Authority.

 You can rely on our local agents for assistance in registering an Indonesian business for selling coffee, tea and spices with the authorities in this country.
 

Licenses for selling coffee, tea and spices in Indonesia


Once the Indonesian shop is registered, it needs to obtain various licenses which will allow it to sell food products and beverages, including coffee, tea and spices. The registration of such products must be completed with the National Food and Drug Control Agency (BPOM).

Once the company is registered with BPOM, the business owner can apply for the import license. However, foreign-owned companies need to appoint a licensed agent to be able to distribute the products.

As a reseller, there are no restrictions when opening a shop for selling coffee, tea and spices in Indonesia.
 

Regulations when selling coffee, tea and spices in Indonesia


No matter if the products to be sold in the Indonesian shop are imported or locally produced, they must respect certain regulations. In the case of local products, these must comply with the packaging, labeling and registration procedures. In the case of imported coffee, tea or spices, additional shipping requirements must be respected.

Considering Indonesia is one of the most important markets in Southeast Asia for the sale of coffee, tea and spices, the labeling requirements which need to be complied with when selling them imply:
 
  • the name of the product and of the company producing them;
  • the ingredients (if any additives are found in the products);
  • the content and the net weight of the product;
  • the country of origin (if applicable);
  • the registration number;
  • information about the distributor or importer;
  • the expiration date.

The production code and storage instructions must also be provided when selling coffee, tea and spices in Indonesia.
 

The retail market in Indonesia


Those who open companies for selling coffee, tea and spices in Indonesia must know that this business is only a small section of the retail industry which registers very good results every year, as follows:
 
  • the consumption of various food products and beverages registered a 5% increase in 2018;
  • in December 2018, the Indonesian retail sector registered a total increase of 2.6%, according to statistics;
  • the food and beverages sector represented 14.3% of Indonesia’s Gross Domestic Product (GDP) in 2018;
  • the manufacturing of food and beverages also represents an important part of the GDP (5% in 2018).

If you want to open a business for selling coffee, tea and spices in Indonesia, please contact our company registration agents.