Indonesia Regulatory News

On 21 November 2024, the two-year grace period for cosmetic products to comply with the updated ASEAN Cosmetic Directive (ACD) ended. The updates were introduced during the 36th ASEAN Cosmetic Committ...

On 21 November 2024, the two-year grace period for cosmetic products to comply with the updated ASEAN Cosmetic Directive (ACD) ended. The updates were introduced during the 36th ASEAN Cosmetic Committee (ACC) meeting and its related sessions in November 2022. Products that do not meet the updated standards must be withdrawn immediately. The amendments reflect the ASEAN region’s approach to aligning with global safety standards and protecting the health of consumers in its 10 member states.

Key Updates to the ACD

• Annex II – List of substances which must not form part of the composition of cosmetic products

A consolidated list of 37 substances previously banned in the EU, has been added to Annex II of the ACD. These include entries from EU regulations (2019/831, 2019/1966, 2021/850, 2021/1902) that are not currently used in ASEAN countries. Specific compounds such as perboric acid, sodium perborate, boron compounds, octamethylcyclotetrasiloxane (D4), and p-BMHCA have also been included in Annex II.

• Titanium Dioxide Regulation

Revised safety criteria for the use of titanium dioxide as a colouring agent (Annex IV) and as a UV filter (Annex VII) have been adopted as per EU standards.

• Salicylic Acid Regulation

New limits have been introduced for salicylic acid in the Restricted Substance List (Annexes III) and in the Preservatives list (Annex VI), used in body creams, lotions, and other specific applications.

Implications for Industry

Cosmetic manufacturers, traders, and distributors were granted a two-year grace period to reformulate, test and phase out non-compliant products. With the end of this period concluded, compliance is now mandatory, ensuring that products meet updated safety requirements.

Detailed guidelines for compliance can be found here.

On August 29, 2024, Indonesia’s National Agency of Drug and Food Control (BPOM) released a draft amendment to the Regulation Concerning Cosmetic Labeling, Promotion, and Advertising for public consu...

On August 29, 2024, Indonesia’s National Agency of Drug and Food Control (BPOM) released a draft amendment to the Regulation Concerning Cosmetic Labeling, Promotion, and Advertising for public consultation which ended on 2 September 2024. The draft amendment includes business obligations and supervision requirements for the labeling, promotion and advertising of cosmetics.  

Draft to Revoke Existing Cosmetic Labeling and Advertising Regulations 

The draft regulation by BPOM is intended to replace several existing regulations related to cosmetic labeling, promotion, and advertising. Specifically, it will revoke the following regulations once enacted: 

• BPOM Regulation No. 30 of 2020 on Technical Requirements for Cosmetic Labeling. 

• BPOM Regulation No. 32 of 2021 on Cosmetic Advertising Supervision. 

• BPOM Regulation No. 12 of 2023 on Supervision of Cosmetic Manufacturing and Distribution, particularly the sections related to cosmetic labeling and advertising, as well as the supervision of labeling for refillable cosmetics. 

This regulation will take effect on the day of its promulgation. This Agency Regulation will be promulgated by the person in charge by publishing it in the Republic of Indonesia's State Gazette to ensure that everyone is aware of it. 

Comprehensive Labeling Requirements  

The amendment sets out detailed requirements for product labeling, including the following information:  

• Product name  

• Usage  

• Composition  

• Country of origin  

• Full name and address of the Notification Number Owner  

• Batch number  

• Size, content, or net weight  

• Expiration date  

• Notification number  

• 2D barcode  

• Warning and/or caution  

• Benefits or uses   

In addition businesses may include a halal label on the packaging, provided they own the product’s notification number.  

Clear Guidelines for Refillable Cosmetics  

The draft also addresses   

refillable cosmetics, which are cosmetics that are repackaged in containers according to consumer requests made at cosmetic refill facilities. The labeling for refillable cosmetics must include at least the following information:   

• Product name  

• Notification number  

• Name and address of the cosmetic refill facility  

• Batch number  

• Refill date and expiration date  

Promotion and Advertising Rules  

Advertising is a promotion in the form of a communication message regarding cosmetics and/or refillable cosmetics and/or cosmetics and/or refill cosmetics brands to the target audience, in the form of images, writing, sound, audiovisual or other forms delivered by various means for marketing and/or trade of cosmetics and/or refill cosmetics.  

Promotion and advertising may only be carried out for cosmetics that have obtained a distribution permit in the form of a notification from the Head of the Agency. Promotional and advertising publications must be in accordance with the data and information contained in the notifications and comply with advertising ethics.  

On July 15, 2024, the Indonesian Halal Product Assurance Agency (BPJPH) of the Ministry of Religion (Kemenag) launched the Overseas Halal Certificate Registration (RSHLN) service. The menu is availabl...

On July 15, 2024, the Indonesian Halal Product Assurance Agency (BPJPH) of the Ministry of Religion (Kemenag) launched the Overseas Halal Certificate Registration (RSHLN) service. The menu is available at https://ptsp.halal.go.id/.

Import Procedure for Foreign Halal Products

The RSHLN registration service is part of Law Number 33 of 2014, which mandates halal certification for products entering, circulating, and trading in Indonesian territory. It allows foreign halal products imported into Indonesia to be halal-certified without having to apply for a certificate. The certificate must be registered by the BPJPH before distribution in Indonesia. Government Regulation (PP) Number 39 of 2021 also requires halal certificates for raw materials, additives, auxiliary ingredients, and slaughter products.

Documentation Required for RSHLN Registration:

• Application Letter

• Letter of appointment from the company in the applicant's place of origin permitting registration of foreign halal certificates

• Business Licence Number (NIB) of the importer or official representative in Indonesia.

• A copy of the foreign halal certificate must be legalized by the Indonesian representative overseas and signed by an authorized authority for import into Indonesia.

• If the LHLN is in a member country of the Apostille Convention, only an Apostille certificate document is necessary.

• List of items to be imported into Indonesia, with harmonization system code number.

• Confirmation that all provided documents are correct and valid.

Registration process for RSHLN

• The process for RSHLN through the Halal Information System (Sihalal) involves creating an account, filling in applicant data, verifying the application documents, submitting additional documents, making a payment, and publishing the RSHLN Registration Number.

• If the verification results are not met, additional documents and original documents are required.

• If payment is made, an invoice is issued and a payment receipt letter is issued.

• The process ends with the issuance of the RSHLN Registration Number issued.

The halal.go.id page contains all the technical details required for the successful implementation of RSHLN registration.

The Minister of Environment and Forestry of Indonesia published Regulation No. 7/2024 on Procedures for Issuing Recommendations for Import Permits of Ozone Depleting Substances and Hydrofluorocarbons ...

The Minister of Environment and Forestry of Indonesia published Regulation No. 7/2024 on Procedures for Issuing Recommendations for Import Permits of Ozone Depleting Substances and Hydrofluorocarbons on May 16, 2024. The regulation went into effect on that date.  

Objective 

One of the government's initiatives to reduce the effects of global warming is to regulate the use of ozone-depleting substances (ODSs) and hydrofluorocarbons (HFCs), which have a significant potential for global warming. The system for making recommendations for approval of imports of hydrofluorocarbons and compounds that deplete the ozone layer must be developed in order to provide legal certainty importers of these substances. 

Substances and business companies targeted by the regulation 

Chemical compounds that have the ability to react with ozone molecules in the stratosphere are substances that destroy the ozone layer, or BPO (an Indonesian acronym for “Bahan Perusak Lapisan Ozon”) for short. These ODSs are listed in Annex I of the Regulation. 

 Hydrofluorocarbons, or HFCs for short, are substances made up of carbon, fluorine and hydrogen atoms that can be used in place of BPOs but can also contribute to global warming. HFCs are listed in Annex III of the Regulation.  

BPO consists of  

• methyl bromide and  non-methyl bromide substances (listed in Part B of Appendix I. Non methyl bromide consists of the following types of substances): 

• Hydrochlorofluorocarbons (HCFCs) 

• Mixtures between HCFCs and HFCs 

• Mixtures between HCFCs and Perfluorinated Compounds (PFCs) 

It is mandatory for importers of ODSs to register with the Indonesian National Single Window System (SINSW). Additionally, importers must provide certain documentation when applying for an import permit (business permit in the import sector in the form of approval from the minister who handles government affairs in the trade sector to carry out imports). Each import permit has a one-year validity period. 

Import restrictions for methyl bromide are carried out for quarantine and pre-shipment activities. 

Import restrictions for non-methyl bromide are carried out for the following activities: 

1. maintenance of refrigeration equipment. 

2. maintenance of fire extinguishers. 

General regulatory information

The Minister has the authority to determine the national import allocation of BPO or HFC and to issue recommendations for BPO or HFC import approval (a letter as clearance of BPO or HFC Import Approval). Hereinafter, the national import allocation is data and information that contains the consumption and production situation of BPO or HFC for the needs of the population and industry within a certain period of time that is determined and applies nationally. 

Documentation

BPO importers applying as API-U (an importer identification card which is only given to business entities importing certain goods for trade or transfer purposes) or as API-P (an importer identification card which is only given to business entities importing certain goods for their own use as capital goods, etc) submit requests for BPO Import Approval Recommendations by uploading scans of original documents via SINSW including: 

• Details of the goods to be imported 

• Previous year's BPO Import Approval 

• Decree of the Minister of Agriculture on the Granting of Registration Numbers and Permanent Permits for Pesticides to Importers of Methyl Bromide 

• Safety Data Sheets (SDS) 

• Certificate of Analysis (CoA) 

• Letter of registration of hazardous and toxic substance (B3) 

The difference in documentation requirements between API-U and API-P holders is as follows: 

      API-U: Distribution plan of the goods to be imported 

                   Previous year’s records of import and distribution of goods 

      API-P:  Plans for the use of the goods to be imported 

                    Previous year’s records of import and use of goods 

The deadline for submitting the application for BPO Import Approval Recommendations is no later than the first week of December in the year prior to the National BPO Import Allocation is valid. 

The Regulation can be downloaded at:  

https://jdih.menlhk.go.id/new2/uploads/files/PERMEN%20LHK_7_2024.pdf 

Presidential Regulation No. 14 of 2024 on the Implementation of Carbon Capture and Storage Activities was enacted by the Government of the Republic of Indonesia on January 30, 2024. This regulation ou...

Presidential Regulation No. 14 of 2024 on the Implementation of Carbon Capture and Storage Activities was enacted by the Government of the Republic of Indonesia on January 30, 2024. This regulation outlines a methodology for the capture and processing of carbon produced by upstream oil and gas business activities, power plants, industries, and other emission-producing activities. It also defines procedures for transporting carbon from collection and/or processing facilities to injection and storage locations. 

Although Carbon Capture Storage, or "CCS," is not a novel concept, this regulation signals an exciting phase in Indonesia’s history. This strategy will revolutionize the country's economy by creating new business opportunities and expanding the market for low-carbon goods worldwide. 

Objectives

The main focus of the recently released Presidential Regulation No. 14 of 2024 (PR No. 14/2024) is to facilitate the execution of CCS operations highlighting Indonesia's potential as a hub for carbon storage. The regulation provides two main plans for CCS operations: 

• CCS inclusion: This requires cooperative alterations to contracts for integration with oil and gas operations. 

• Licensing: Licenses will be needed for exploration and storage operations in regions that are designated as non-working areas. 

A more detailed procedure for CCS implementation plans is described in PR No. 14/2024, which includes examination by SKK Migas's ((Oil and Gas Upstream Business Activities Operational Agency) and approval by the MoEMR (Ministry of Energy and Mineral Resources). While carbon-storage licenses are not a requirement for implementing CCS in accordance with MoEMR Reg No. 2/2023, the regulation prioritizes domestic storage capacity and international collaboration. 

In order to encourage investment in CCS projects, the regulation emphasizes tax incentives and introduces a carbon transport licence. PR No. 14/2024 complements MoEMR Reg No. 2/2023 and is detailed enough for businesses to begin thinking about developing CCS projects. 

Outcome

Indonesia stands to gain greatly from the application of CCS both the environmentally and economically. In addition to promoting innovation and creating highly skilled jobs, the development and application of CCS can attract investment, particularly from abroad. Indonesia has the geographical advantages that make it even more likely to make a big impact on the global CCS scene. 

The Council of the Organization for Economic Co-operation and Development (OECD) decided on February 20, 2024, to open accession talks with Indonesia, recognising the country's progress toward meeting...

The Council of the Organization for Economic Co-operation and Development (OECD) decided on February 20, 2024, to open accession talks with Indonesia, recognising the country's progress toward meeting the requirements outlined in the Framework for Consideration of Prospective Members [C(2023)176/FINAL], as well as the criteria of like-mindedness, significant player, mutual benefit, and global considerations. 

Accession Talks Begin 

OECD Secretary- General Mathias Cormann formally presented the OECD Accession Roadmap to Indonesia's Coordinating Minister for Economic Affairs, Mr. Airlangga Hartarto, during a brief ceremony at the opening session of the OECD Ministerial Conference. Both emphasized the historic nature of the OECD's accession talks with Indonesia are, given that Indonesia is the first country in South-East Asia to make such a request. 

Accession Roadmaps and Membership Commitments 

The OECD member countries have designated priority areas for accession to the Organization, and these areas are reflected in the Accession Roadmaps, which outline the conditions, and approval procedure. As part of the subsequent accession process, Indonesia's compliance with OECD standards, rules, and practices will be subject to a thorough and meticulous assessment by 26 technical committees. One such committees is the Chemicals and Biotechnology Committee, which oversees the OECD’s work on chemical safety and biosafety. The Committee helps countries work on cost-effective ways to protect human health and the environment from chemical risks. 

The Importance of Chemical Safety 

Chemicals are an essential part of human life. They are found in many items we use on a daily basis, such as sunscreen, computers, insect repellents, and insulating materials that increase energy efficiency. While chemicals have advantages, they can also harm the environment and public health. Governments must therefore have an important role to play in ensuring the safe production and use of chemicals, and in requiring chemical companies to carry out a range of tests prior to allowing chemicals onto the market. Testing chemicals is necessary, but it can be time- and resource -consuming. 

Benefits of the OECD MAD System 

The OECD's Mutual Acceptance of Data (MAD) system, guidelines for chemical testing, and other tools have increased savings for society. Countries can minimize redundant testing and remove non-tariff barriers to trade by working together on common substances. This ensures the development of chemicals that are safer for humans and the environment, as well as more effective and sustainable.  

Objectives and Obligations 

The main objective of the accession process is to bring Indonesia closer to OECD best practices, policies, and standards. This will benefit Indonesia and its people as well as OECD members. The OECD and Indonesia will work closely together throughout the accession process to facilitate the implementation of long-term reforms that will bring Indonesia line with OECD best practices, best policies, and standards. 

In joining the OECD, Indonesia will commit to: 

1. Accept the goals and objectives of the Organization as set out in the Convention. 

2. Comply with the OECD Convention and fulfil all obligations and commitments contained therein. 

3. Adopt additional protocols to the OECD Convention. 

4. Approve decisions, resolutions, rules and regulations previously adopted by the organization. 

5. Approve the financial statements and working methods of the Organization. 

6. Ratify all relevant legal documents of the Organization. 

7. Sign a privileges and immunities agreement to ensure the independence and proper functioning of the Organization. 

Conclusion 

There is no deadline for completing the accession procedures. The final result and schedule will dend upon how quickly each candidate country makes the necessary modifications to bring itself even closer to the Organization's best practices and standards. To issue an invitation for membership, the member countries of the OECD Council must reach a final, unanimous decision after all the technical committees have completed their reviews.

The Indonesian Food and Drug Administration (FDA) has updated its list of substances that can be used in cosmetics without permission or with restrictions. The FDA issued draft amendments to the Te...

The Indonesian Food and Drug Administration (FDA) has updated its list of substances that can be used in cosmetics without permission or with restrictions.

The FDA issued draft amendments to the Technical Requirements for Cosmetic Ingredients Appendices on August 24, 2023. The final amendments were issued and became effective on December 7, 2023. It is noteworthy that cosmetic notification holders who received notification numbers from the National Agency of Drug and Food Control (BPOM) before the amendments came into force, must comply with the updated regulations within 24 months (i.e. by December 7, 2025).

The modifications took place in the following appendices of the cosmetics regulation:

• Appendix I: Restricted ingredients
• Appendix II: Approved colorants, with restrictions and usage guidelines (hair dyes solely for hair coloring)
• Appendix III: Approved preservatives with restrictions and usage guidelines
• Appendix IV: Approved sunscreens with restrictions and usage guidelines

One restricted ingredient was added to the Appendix I List of Restricted Ingredients and 7 ingredients were revised in the same list. Substances in Appendix II, III, IV (i.e. the approved lists of colorants, preservatives and sunscreens were also revised .