The Indonesian market is an import market, largely due to the scarcity of local manufacturers. The main exporters of health products to Indonesia are from the United States, and US brands have demonstrated an excellent consumer confidence in Indonesia. The supplement industry is worth around $400M per year, and consumer pricing is similar to the Malaysian market.
The Association of Southeast Asian Nations (ASEAN) harmonized regulatory standards apply, and pre-market approval is required before coming to market. Oversight is given to a product’s ingredients, daily dose, warnings and health claims (special consideration given to therapeutic claims). Indonesia has a fast growing middle class; according to the WHO, per capita spending increased from $86 to $107 between 2010 and 2013. With over 240 million people in Indonesia, the country is being forecasted as one of the most important rising middle class markets in the global market (Asian Development Bank).
A “food supplement” is defined as a product intended to complement the nutritional needs, maintain, increase or improve health function, and containing one or more ingredients in the form of vitamins, minerals, amino acids or other various plant/non-plant ingredients that have nutritional value. Classification of products is not clearly defined by the BPOM, although heavily based on product composition. A minor change in ingredient composition, for example, may require a different regulatory strategy/process.
It is also noteworthy that imported food supplements must have at least one third of their shelf life remaining at their date of entry. An import certificate (SKI) must be issued by BPOM each time the product is imported, and the Indonesian distributor must apply for a distribution permit.
NHP Consulting will provide all regulatory documentation to achieve market compliance for the Indonesia marketplace.