Indonesia tightens cosmetics market with halal mandate and import crackdowns
This move enforces an aggressive crackdown on unregistered imports, sending an unmistakable message that regulatory compliance is now non-negotiable for the industry.
INDONESIA – Indonesia is executing a dual regulatory strategy that reshapes compliance in its beauty sector, as the country simultaneously implements mandatory halal certification for all cosmetics effective October 17, 2026.
According to the regulatory body, cosmetic products distributed in Indonesia must be halal-certified, thereby transforming the country’s regulatory landscape for beauty brands.
Meanwhile, a draft decree from the BPJPH head translates this legal mandate into practical implementation guidance through the proposed Halal Assurance System (SJPH), which identifies halal control points throughout the production process.
The SJPH rests on five pillars: a written halal policy with a Halal Supervisor, complete documentation for all materials, strict rules banning the use of pig and non-halal slaughter ingredients in lip products, separate halal and non-halal facilities with records, and annual audits with biannual BPJPH reporting.
In a parallel enforcement action, BPOM confiscated 2,082,039 units of unregistered cosmetics across 956 product lines, with an estimated value of 27.6 billion rupiah (USD 1.7 million).
The enforcement operation was triggered by consumer complaints received in May 2026.
The initial investigation identified 890 unregistered products totalling over 1.8 million units.
Authorities traced illegal cosmetics to an importer and reseller operating from a Tangerang warehouse. Products entered through unofficial import channels were distributed primarily via e-commerce platforms without mandatory distribution permits.
BPOM estimates consumers were exposed to products worth 22.1 billion rupiah that bypassed safety and quality assessments while the state incurred approximately 5.5 billion rupiah in lost tax revenue from unpaid duties.
Penalties for responsible parties include up to 12 years in prison or fines up to 5 billion rupiah under Indonesian regulations, and BPOM has ordered market withdrawal of affected products while continuing its investigation.
Indonesia’s two regulatory developments point decisively in the same direction as BPJPH is building the halal compliance framework ahead of October, while BPOM polices the registration and distribution regime already in force, with one agency raising the bar for market entry while the other enforces the compliance floor, creating converging documentation, facility, and registration obligations for brands within months.
The common thread is intensified scrutiny of documentation completeness, product traceability, and legitimate distribution channels.
This regulatory environment leaves e-commerce sellers and importers most exposed, since the seizure demonstrated that products reached Indonesian consumers through online platforms without distribution permits, bypassing registration guarantees.
The Chemical Inspection and Regulation Service advises companies exporting to Indonesia to begin preparing for halal certification immediately by comprehensively reviewing formulations, verifying the halal status of every ingredient, gathering certification-required documentation, and paying particular attention to animal-derived, microbial-derived, and biotech-derived materials.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.
