Business Setup in Indonesia
There are several ways to break into the Indonesian market, but finding the setu...
Food safety is an important issue that should not be overlooked. The governmental body in charge of overseeing food and drug control in Indonesia is Badan Pengawas Obat dan Makanan or BPOM, which is responsible for protecting public health through the supervision and control of various goods such as pharmaceutical drugs, vaccines, dietary supplements, food, and safety of traditional medicine, and also cosmetics.
BPOM conducts random testing of goods distributed to the market. BPOM’s checking of products does not merely occur before the distribution stage when companies apply for relevant permits and licenses; the checking extends even after distribution.
A clear implication of that objective is the recent withdrawal of Haagen Dazs ice cream from the Indonesian market. The reason for the withdrawal was the contents of Ethylene Oxide (EtO) within the ice cream exceeded the limit set by the European Union.
The said chemical substance is harmful to the body and has been banned in many countries. EtO is generally used in Indonesia to preserve various dried food, spices, and other products that may rot quickly.
The United States Environmental Protection Agency classifies EtO as a carcinogenic compound. This classification is based on the side effect it has on humans, which includes muscle weakness, nausea, vomiting, diarrhea, shortness of breath, headache, and other similar illnesses. In some more severe cases, it can cause leukemia, neurotoxicity, and acute respiratory syndrome.
There is a constant need to balance the exposure to different products by opening up Indonesian markets and keeping the general public health. The Indonesian government continues to make it cheaper and more accessible for products to penetrate the Indonesian market.
However, ensuring the quality of the product itself might be tricky. BPOM takes this role, so consumers do not have to worry about their safety in consuming products in Indonesian markets.
As BPOM is the regulatory body to ensure that food products are safe for consumption in Indonesia, their routine is to check the safety along the process, starting from the production stage until the product reaches the hands of the consumers to ensure they comply with safety standards.
Promising the safety of food products is also an integral part of human rights. Consumers have the legal right to be safe from health threats and to live in a healthy environment.
The role and significance BPOM holds continue to increase as national economic growth continues to spur. Assurance of consumer protection amidst competitiveness is essential within the food and beverage industry.
There is a dire need to support the standardization of raw materials, products, and processes. Testing laboratories hold a strategic role in providing quality infrastructure that allows for proper supervision of food safety.
Other bodies like the Balai Besar Industri Agro (BBIA), set up under the Minister of Industry, also carry out the critical task of liaising between national institutions relating to food resting in Indonesia.
To apply for the distribution permit from BPOM for food products, the first step is to register the company account through the following steps:
The steps mentioned above only register the company itself and not the products. To register food products, here are the necessary steps:
The process is often long and tedious. Companies that require help with both company registration and product registration should contact InCorp Indonesia (formerly Cekindo) for further assistance.
Cost reduction, hiring time reduction, hire quality are among the most noteworthy benefits your company can enjoy.
Even though building an internal recruitment team sounds appeal, later on you will learn how overwhelming the recruitment and human resources tasks really are. Interview, payroll, tax and these are just some. Not to mention, an internal recruitment team needs to keep up with the latest changes in regulations that may happen regularly.
Minimum wage (may vary based on region), 12-day annual leave (minimum), BPJS coverage, holiday allowance (usually distributed before Christmas or Eid al-Fitr).
Before entering into any agreement with our clients, we sign a data protection agreement to ensure that all data are kept confidential across all involved activities.
As a leading recruitment outsourcing provider in Indonesia, Cekindo offers comprehensive services. To check references and qualifications, we will perform an in-depth background check on candidates.
Throughout the years, our HR specialists have had extensive experience in an array of industries. They possess the required skills and ability to ask the right questions, regardless of industry.
As soon as you decide you’d like us to be your Employer of Record, the onboarding process starts and will take approximately 5 days in our HR and Payroll department.
You will need to have a company that meets your home country’s requirements and agree to a 2-month salary deposit for a fixed-term employment contract.
You will need your employee’s personal documents (KTP, KK, BPJS cards) as well as employee benefits information such as salary and other benefits.
A comparable service to EoR is Professional Employer Organization (PEO). EoR’s and PEO’s are similar in that they both assist with outsourcing human resources services, but differ in legal responsibilities.
While a PEO may also assist you in recruitment, your company will still hold employee contracts. This means your company will still bear all legal liabilities when hiring but a PEO takes on your employees and are responsible for anything HR-related.
In contrast, an EoR is the legal employer of those your company hires, meaning they hold employment contracts – EoR’s put your business and employees on their payroll.
Pandu is the Consulting Manager at Cekindo. He has extensive experience in working with government agencies. Notably, he has provided market-entry solutions for enterprises in Indonesia and managed regional partnership channels in Southeast Asia. At Cekindo, Pandu aspires to lead the consulting team to provide top-quality market-entry services and maintain a portfolio of global clientele. His specialty is market-entry advisory and business process outsourcing.