Indonesia represents one of Southeast Asia’s most promising consumer markets, particularly for food and beverage (F&B) companies.

Regulatory compliance is crucial. All food and beverage products must register with the Indonesian National Agency of Drug and Food Control (BPOM). Only a legal entity in Indonesia can obtain the product license needed for registration and import.

This case study outlines how a multinational F&B brand achieved scalable market entry into Indonesia by engaging with InCorp, ensuring compliance while maintaining commercial flexibility.

The challenge: Navigating Indonesia’s regulatory environment

Despite the immense market potential, Indonesia’s regulatory environment can be daunting, especially for foreign F&B brands. The case company faced several key challenges, but with the right strategy, these hurdles were overcome, providing a sense of reassurance and relief from the regulatory burden:

• Managing the registration of dozens of products, each requiring unique documentation tailored to BPOM standards.
• Understanding and complying with BPOM’s stringent regulations, including navigating evolving procedures and submission requirements.
• Coordinating import logistics for goods manufactured in Thailand, ensuring compliance with import documentation and customs protocols.
• Maintaining flexibility to appoint multiple distributors, without tying regulatory ownership to a specific commercial partner.

These challenges required a licensing model that ensures speed, regulatory certainty, and long-term scalability.

Our approach

To address these challenges, the company appointed InCorp to act as its product license holder in Indonesia. This allowed full regulatory compliance while preserving distribution flexibility. The engagement included:

• Product registration under the local license holder: The company’s food and beverage products were legally registered with BPOM under InCorp Indonesia, enabling market entry.
• Import assistance: InCorp managed regulatory documentation for shipments from Thailand, ensuring timely and compliant customs clearance.
• Surveyor report coordination: Supported the preparation of required facility and product reports, facilitating smooth BPOM approvals.
• Import notification letters: These were secured to enable the legal importation of products into Indonesia.

The project was closely overseen by the company’s regulatory, legal, and regional leadership teams across Southeast Asia, ensuring internal alignment and fast-track decision-making.

Read more: Import notification process for B3 goods in Indonesia: A case study

The results

The collaboration between the company and the local product license holder delivered measurable success across several areas:

• 37 food and beverage products were successfully registered under InCorp Indonesia.
• The expansion pipeline increased from 19 to 49 products, enabling broader market coverage.
• Regular importation from Thailand to Indonesia commenced without regulatory disruption.

This structure allowed the company to engage multiple distributors while maintaining independent control over its product registrations. The result was a scalable, compliant framework that enabled long-term market expansion while reducing regulatory risk.

Long-term strategic advantages

The product license arrangement delivered benefits that extended beyond initial compliance, contributing to the company’s sustained success in Indonesia:

• Product safety and regulatory independence: All product registrations are securely held by the neutral license holder, preventing entanglement with commercial partners.
• Distributor flexibility: The company retained complete freedom to appoint and manage multiple local distributors without regulatory complications.
• Market readiness: With a strong compliance foundation, the company is well-positioned to establish its own Indonesian legal entity in the future.

This structure enabled the company to manage growth confidently while minimizing regulatory exposure.

Why is a product license holder in Indonesia critical?

For any foreign food and beverage brand, appointing a local product license holder is essential to entering and operating legally in Indonesia. Key reasons include:

• Mandatory BPOM registration: No F&B product can be sold in Indonesia without a valid BPOM registration.
• Requirement for a local legal entity: Only Indonesian-registered businesses are eligible to hold and apply for BPOM product licenses.
• Complex documentation requirements: Submissions must include accurate labeling in Bahasa Indonesia, halal certificates, and verified manufacturing information.
• Import logistics and approval dependency: Without proper licensing and import documentation, products risk delays or rejections at customs.
• Ongoing compliance obligations: BPOM registration is not a one-time process since products must be regularly renewed and updated in accordance with regulatory changes.

This makes selecting a capable and neutral license holder a crucial element of any successful market-entry strategy.

Tips for choosing a product license holder in Indonesia

Selecting the right product license holder is a critical decision that can significantly impact your regulatory compliance and operational flexibility. When evaluating potential partners, consider the following qualities:

• Proven regulatory expertise: Look for experience in managing BPOM registrations and navigating food product compliance requirements.
• Neutral business model: Choose a license holder independent of distribution to avoid commercial conflicts and maintain strategic freedom.
• Efficient communication and processing: Fast response times and organized workflows help minimize delays in registration and importation.
• Scalable support capabilities: Ensure the partner can manage both initial registrations and future updates or renewals as your product portfolio grows.
• Post-market regulatory support: Seek partners who offer assistance with label changes, recalls, and updates to comply with evolving regulations.
• Halal certification guidance: In Indonesia’s Muslim-majority market, expertise in halal compliance is a valuable asset for food and beverage products.

A well-chosen license holder enables a smoother market entry while protecting long-term commercial and regulatory interests.

Market outlook for F&B brands in Indonesia

Indonesia is Southeast Asia’s largest consumer market, offering significant growth opportunities for international food and beverage brands.

Several trends are driving demand for imported products:

• Growing consumer base: With over 270 million people and a rising middle class, demand for diverse food options continues to increase.
• Shift toward packaged and ready-to-eat foods: Urban lifestyles are driving the popularity of convenient, shelf-stable products.
• Expansion of modern retail and e-commerce: Online grocery platforms and modern retail outlets are expanding access to global brands.
• Interest in health and wellness: Consumers are increasingly drawn to organic, plant-based, and functional food products.

Entering this dynamic market with a valid product license and regulatory support positions companies to capitalize on these trends while ensuring full legal compliance.

Clear Paths to Product Registration in Indonesia

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Conclusion

A well-structured product license strategy is essential for any foreign food and beverage company seeking to enter the Indonesian market.

The company in this case study hired a local license holder who is both neutral and experienced. This decision helped them meet all regulatory requirements, maintain a flexible distribution strategy, and expand their product offerings efficiently.

This approach provided long-term control, reduced risk, and positioned the company for sustainable growth in one of Asia’s most promising consumer markets.

For businesses considering expansion into Indonesia’s F&B sector, establishing a compliant licensing framework from the outset is not only a regulatory necessity but a strategic advantage.

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