There is no single distribution license for foreign brands in Indonesia. The required licenses depend on the distribution structure, the products being sold, and whether the Indonesian company will import them directly.
Choosing the Correct KBLI for Distribution
A company distributing products in Indonesia must register the correct KBLI business classification for its activities. Wholesale activities use different classifications depending on the goods being distributed.
Selecting the wrong KBLI can leave the company without the licenses required for its actual distribution activities.
Is an NIB Enough to Distribute Products?
The Business Identification Number (NIB) is obtained through OSS, but it does not by itself authorize every distribution activity.
What the company needs beyond the NIB depends on the risk level of its business activities and the requirements for its KBLI.
Setting up distribution operations in Indonesia? Contact info@mapresourcesindonesia.com
Depending on the activity, additional business licenses, standards, certificates, or approvals for specific sectors may be required before operations can begin.
Can a Foreign-Owned PT PMA Distribute Products?
Foreign ownership of an Indonesian trading company does not automatically give the company the same distribution rights as a domestic company.
Under Indonesia’s trade rules, a foreign-owned trading company acting as a distributor must appoint a domestic investment company as its distributor, sole distributor, agent, or sole agent. The appointment must be set out in an agreement legalized by a notary and supported by written approval from the overseas manufacturer principal.
When Is Distributor Registration Required?
Distributor and agency arrangements that require registration under Indonesia’s trade rules must be registered with the Ministry of Trade to obtain the appropriate Registration Certificate (STP).
The documents required depend on whether the Indonesian company acts as a distributor, sole distributor, agent, or sole agent. Foreign brands should determine the required structure before signing the distribution agreement because the agreement can form part of the registration process.
Which Products Need Additional Approvals?
Processed food, cosmetics, medicines, and certain other regulated products may require BPOM registration or approval. Medical devices are subject to separate health-sector requirements, while products covered by mandatory Indonesian National Standards (SNI) must meet the applicable SNI requirements before they can be marketed.
Need help identifying the approvals for your products? Email info@mapresourcesindonesia.com
Indonesia’s mandatory Halal certification requirements are being introduced in stages. Food and beverages produced by medium and large businesses have already been subject to the requirement since October 2024. From October 18, 2026, the next phase covers additional categories, including foreign food and beverage products, cosmetics, certain medicines and supplements, chemical and genetically engineered products, and specified consumer goods.
Where a product approval requires an Indonesian applicant or license holder, the Indonesian distributor or company may need to be appointed or established before the product application is filed.
Can the Indonesian Distributor Import the Products?
If the Indonesian company will import products directly, its NIB can also function as its importer identification. This does not authorize the import of every product. The company must check the relevant KBLI, HS classification, restrictions on importing certain goods, and any required import or product approvals.
The HS classification also determines customs duty and can trigger product-specific import restrictions or technical requirements.
A foreign brand using a third-party importer must ensure that the appointed importer is licensed for the relevant goods, and that the product registrations and commercial agreements allow that arrangement.
What If the Brand Uses a Local Distributor?
A foreign brand does not need to establish its own PT PMA if it sells through an Indonesian distributor. The Indonesian distributor can hold the required business licenses, while the foreign company remains the overseas principal.
Product registrations, import arrangements, and required registrations between the foreign principal and Indonesian distributor must then be structured according to the products and commercial relationship involved.
Appointing an Indonesian distributor? Our team can assist at info@mapresourcesindonesia.com
The distribution agreement should clearly state who owns or controls the product registrations, trademarks, and customer relationships, as well as what happens when the agreement ends. These issues become important if the foreign brand later changes distributors.
Obtain Distribution Licenses With MAP Resources Indonesia
MAP Resources Indonesia assists foreign brands with company establishment, KBLI selection, OSS licensing, distributor arrangements, product approvals, and import requirements. Contact us at info@mapresourcesindonesia.com.
