Indonesia — the largest market in Southeast Asia with rapidly growing demand and unique regulatory features.
In this article, we thoroughly analyze how to properly prepare a product for launch, the necessary steps to enter the market, the challenges and risks foreign companies face, as well as the opportunities localization in Indonesia opens up.
The material is based on practical experience, analytics, and real cases — for those seeking not just information, but a step-by-step action plan and tools for a successful start.
Entering the Indonesian Market: Key Steps, Risks, and Success Strategy.
Indonesia – a promising market for export
With a population of over 270 million people and a rapidly growing economy, Indonesia offers huge opportunities for international brands. The country ranks among the top 20 largest economies in the world and demonstrates stable consumption growth, especially in FMCG, cosmetics, pharmaceuticals, and electronics segments. However, successful market entry requires understanding local specifics, legislation, and consumer preferences.
Main barriers and mistakes when entering the market
Before launching sales in Indonesia, it is important to consider several factors that can become barriers:
- Regulatory requirements – many products require mandatory certification (BPOM, halal, SNI).
- Logistics challenges – high import costs and customs duties can significantly affect product pricing.
- Cultural differences – preferences of Indonesian consumers may differ greatly from European and American markets.
- Competition with local brands – strong local companies have already occupied niches, and international players must compete for market share.
BPOM and halal certification – mandatory requirements
For most imported products in the FMCG, cosmetics, and pharmaceutical categories, registration with BPOM (National Agency of Drug and Food Control) is required. Without this certification, products cannot be sold in official retail chains. Halal certification is also mandatory for food products, as 87% of Indonesia’s population is Muslim.
BPOM certification stages:
1. Company registration in Indonesia or engagement of a local importer.
2. Collection and submission of documents (composition analysis, safety, compliance with standards).
3. Laboratory testing and inspection.
4. Obtaining sales approval (the process can take 3-6 months).
Distribution: how to get into Indomaret, Alfamart, and marketplaces
To successfully sell products in Indonesia, it is important to choose the right distribution channels. The most popular options:
- Supermarket and minimarket chains: largest retail chains Indomaret, Alfamart, Hypermart, Pepito.
- Online marketplaces: Shopee, Tokopedia, Lazada – platforms with high traffic and access to mass consumers.
- B2B distributors: companies specializing in imported products and working with local stores and retailers.
Effective promotion strategies: digital, influencers, B2B
Marketing in Indonesia requires a comprehensive approach. The most effective tools:
- Digital marketing – targeted advertising on Instagram, TikTok, Facebook.
- Influencer marketing – collaboration with popular local bloggers.
- Direct B2B sales – participation in exhibitions, negotiations with distributors.
- Offline promotions – product placement at retail points with promotions and advertising materials.
Examples of successful market entry
- Husky Vape – a brand we successfully launched in the Indonesian market. Within 1.5 years, the product is represented in over 800 stores across the country, including leading retail chains and marketplaces. Thanks to a comprehensive approach including certification, distribution, and marketing, the brand secured a position in one of the most promising segments.
Many international companies have already successfully established themselves in Indonesia thanks to a smart localization and distribution strategy.
For example:
- XYZ Cosmetics – adapted product composition to local preferences, obtained BPOM certification, and entered major retail chains.
- ABC Snacks – used marketplaces and influencers, tripling sales in the first 6 months.
- Over the last 18 months, Husky has grown from launch to one of the fastest-growing companies in the industry: the network expanded from 2 to 1,186 retail points in 20 Indonesian provinces, with overall growth of 593 times. Total turnover exceeded 9.7 billion IDR, and the average annual growth rate of points was 4.6x.
How can we help?
Our services cover the full market entry cycle:
- Market analysis and expansion strategies.
- Certification (BPOM, halal, SNI).
- Distribution and logistics.
- Development of marketing strategies and digital promotion.
Ready to launch your brand in the Indonesian market? Contact us for a consultation!
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Market Potential Assessment Plan.
This plan will help determine whether it is worth launching a product in the Indonesian market, what risks and opportunities exist, and which strategies are best to use.
This plan will help determine whether it is worth launching a product in the Indonesian market, what risks and opportunities exist, and which strategies are best to use.