The Obligation to Use Indonesian Language Label, Here's the Basis

PERTANYAAN

Do cosmetics imported into Indonesia have to be accompanied by Indonesian language descriptions on the products? If so, is it mandatory to attach the Indonesian language description before entering Indonesia or after entering Indonesia? And who requires the Indonesian language description to be attached? Thank you.

INTISARI JAWABAN

Every business actor is obliged to use Indonesian language labels on goods traded domestically.

This obligation applies to producers for domestically produced goods, importers for goods of imported origin, packers for domestically produced or imported goods packaged in Indonesia, and collecting traders.

So, what are the provisions on when the labeling is made? If it is not labeled in Indonesian, what are the legal consequences?

Please read the review below for a further explanation.

ULASAN LENGKAP

This article is an English translation of Label Bahasa Indonesia Wajib Dicantumkan, Ini Dasarnya, written by Bernadetha Aurelia Oktavira, S.H., and published on Tuesday, 27 June 2023.

This article is the second update of the article entitled Obligation of Business Actors to Attach Indonesian Language Labels, written by Tri Jata Ayu Pramesti, S.H., and first published on Tuesday, 14 September 2021, and first updated on 1 February 2016.

All legal information available on Klinik hukumonline.com has been prepared for educational purposes only and is general in nature (read the complete Disclaimer). In order to obtain legal advice specific to your case, please consult with Justika Partner Consultant.

Regulation on Cosmetics Import

Cosmetics are materials or preparations intended for use on the external parts of the human body such as the epidermis, hair, nails, lips and external genital organs, or teeth and oral mucous membranes primarily to cleanse, perfume, change appearance, and or improve body odor or protect or maintain the body in good condition.[1]

Referring to Article 1 number 1 of the Indonesian Food and Drug Authority a.k.a. BPOM Regulation 27/2022, cosmetics are classified as drugs and food, so the provisions for importing cosmetics refer to the regulation. Next, we will explain the regulations that must be followed when importing cosmetics into Indonesia.

According to the article entitled Want to Buy Cosmetics from Abroad? Here are the Regulations, cosmetics that can be imported into Indonesia for distribution must fulfill the following requirements:

1. The cosmetics have a distribution license and fulfill the provisions of laws and regulations in the field of import.
2. The importer receives approval from the Head of BPOM, in the form of Post Border Import Certificate.
3. Cosmetics have a shelf life of at least 1/3 of the shelf life.
4. Import of cosmetics can only be done by distribution license holders or their proxies.

Business actors who violate the provisions of the Head of BPOM approval are subject to administrative sanctions in the form of:[2]

1. written warning;
2. temporary suspension of import and/or distribution activities;
3. closure of online access to submit applications for Border Import Certificate or Post Border Import Certificate for the product concerned for a maximum of 1 year;
4. withdrawal of drug and food products from distribution;
5. destruction or sending back to the country of origin for re-export;
6. suspension of distribution license; and/or
7. revocation of distribution license.

Goods that are Required to be Labeled in Bahasa Indonesia

Labels are any information about goods in the form of images, writings, a combination of both, or other forms that contain information about goods and information about business actors and other information in accordance with the provisions of laws and regulations that are attached in goods, inserted into, affixed to, placed on, or are part of the packaging of goods.[3]

Basically, Article 20 section (1) Government Regulation 29/2021 requires every business actor to use Indonesian language labels on domestically traded goods.

What is meant by goods is every object, both tangible and intangible, both movable and immovable, both expendable and non-expendable, and can be traded, used, or utilized by consumers or business actors.[4]

However, if we refer to the Appendix of Minister of Trade Regulation 25/2021, which is the implementing regulation of Government Regulation 29/2021, goods that must be labeled in the Indonesian language are namely:

1. Electronic goods for household use, telecommunications, and informatics;
2. Building material goods;
3. Goods for motorized vehicles (spare parts and others);
4. Textile goods and textile products;
5. Other goods, including children's toys, paints, printing inks, fertilizers, and plastic products for household use.

However, in our opinion, although according to Minister of Trade Regulation 25/2021 cosmetics are not specifically mentioned in the goods that must be labeled in Indonesian, but because cosmetics are included in the definition of goods according to Government Regulation 29/2021 and are traded in Indonesia, cosmetics are also required to be labeled in Indonesian.

Indonesian Language Label Policy

Labeling is carried out with the following provisions:

1. Labels use the Indonesian language that is clear, easy to read, and easy to understand.[5]
2. Languages, numbers, and letters other than Indonesian, Arabic numerals, and Latin letters may be used if there is no or cannot be created equivalent.[6]
3. The attachment of Indonesian language labels can be in the form of embossed/printed, pasted/adhered as a whole, or inserted or included in the goods and/or packaging.[7]
4. The label contains information regarding:[8]

 

1. The name of the goods;
2. Origin of the goods;
3. The identity of the business actor, at least containing the name and address of the producer (for domestically produced goods), the name and address of the importer (for goods of imported origin), the name and address of the packer (for domestically produced goods or imported origin packaged in Indonesia), or the name and address of the collecting trader if acquiring and trading goods produced by micro and small enterprises;
4. Other information in accordance with the characteristics of the goods;
5. Remarks or explanations in accordance with laws and regulations.

 

5. Goods related to the safety, security, and health of consumers and the environment must contain how to use and a clear and understandable hazard symbol and/or warning sign.[9]
6. For goods for which Indonesian National Standard (in Bahasa Indonesia is known as Standar Nasional Indonesia/ “SNI”) has been compulsorily applied, the inclusion of Indonesian language labels follows the marking stipulated in SNI.[10]

The obligation applies to producers for domestically produced goods, importers for goods of imported origin, packers for domestically produced or imported goods packaged in Indonesia, and collecting traders.[11] If violated, the legal consequences are:

1. 1. Subject to administrative sanctions.[12]
   2. Mandatory withdrawal of goods from distribution by order of the Minister and prohibition from trading the goods in question.[13]
   3. The cost of withdrawing goods from distribution shall be borne by the violating business actor.[14]

In addition, business actors who attach labels in Indonesian that contain incomplete, incorrect, and/or misleading information for consumers are subject to administrative sanctions.[15]

Furthermore, the obligation to use Indonesian language labels for business actors as well as to include information on goods in Indonesian is also regulated in Article 8 section (1) letter j Law 8/1999:

Business actors must not produce and/or trade goods and/or services that do not provide information and/or direction for the use of goods in the Indonesian language in accordance with the provisions of prevailing laws and regulations.

If the above provisions are violated, the person concerned is subject to a maximum imprisonment of 5 years or a maximum fine of IDR 2 billion.[16]

So in your case, those who are obliged to label the imported cosmetics in Indonesian are:

1. The importer, if the cosmetics are imported into Indonesia; or
2. The packer of the imported cosmetics, if the imported cosmetics are packaged in Indonesia.

Then, when is the labeling carried out? According to our research, Government Regulation 29/2021 and its implementing regulations do not specifically regulate when the labeling is done/conducted. However, in our opinion, labeling is done when the goods are traded in Indonesia.

Case Study

To simplify your understanding, we provide an example of a related court decision. The Decision of Binjai District Court No. 267/Pid/B/2017/PN.Bnj stated that the defendant was a seller of children's toys and baby equipment purchased by imports, who did not put a label containing an explanation of the goods as well as information or instructions for use in Indonesian (p. 10).

For these actions, the panel of judges stated that the defendant was legally and convincingly proven guilty of committing the crime of trading without placing labels and not including information and instructions for the use of goods in the Indonesian language with a fine of Rp3 million, provided that if not paid, it will be replaced by imprisonment for 3 months (p. 12).

These are the answers we can provide, we hope you will find them useful.

Legal Basis:

1. Law Number 8 of 1999 on Consumer Protection;
2. Regulation of the Government Number 29 of 2021 on the Organization of the Trade Sector;
3. Regulation of the Minister of Trade Number 31/M-DAG/PER/10/2011 on Goods in Wrapped Condition;
4. Regulation of the Minister of Trade Number 25 of 2021 on the Determination of Goods that are Required to Use Indonesian Language Labels;
5. Regulation of the Indonesian Food and Drug Authority Number 27 of 2022 on the Supervision of the Entry of Drugs and Food into Indonesian Territory.

Court Decision:

Decision of Binjai District Court No. 267/Pid/B/2017/PN.Bnj.

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[1] Article 1 number 14 Regulation of the Indonesian Food and Drug Authority Number 27 of 2022 on the Supervision of the Entry of Drugs and Food into Indonesian Territory (“BPOM Regulation 27/2022”).

[2] Article 45 section (2) BPOM Regulation 27/2022.

[3] Article 1 number 2 Regulation of the Minister of Trade Number 31/M-DAG/PER/10/2011 on Goods in Wrapped Condition (“Minister of Trade Regulation 31/2011”).

[4] Article 1 number 35 Regulation of the Government Number 29 of 2021 on the Organization of the Trade Sector (“Government Regulation 29/2021”).

[5] Article 21 section (1) Government Regulation 29/2021.

[6] Article 21 section (2) Government Regulation 29/2021.

[7] Article 22 section (1) and (2) Government Regulation 29/2021.

[8] Article 23 section (1) and (2) jo. Article 24 section (1) Government Regulation 29/2021.

[9] Article 23 section (3) Government Regulation 29/2021.

[10] Article 24 section (2) Government Regulation 29/2021.

[11] Article 20 section (3) jo. Article 29 section (1) Government Regulation 29/2021.

[12] Article 20 section (1) jo. Article 166 section (1) Government Regulation 29/2021.

[13] Article 26 section (1) and (2) jo. Article 29 section (2) Government Regulation 29/2021.

[14] Article 26 section (4) jo. Article 29 section (3) Government Regulation 29/2021.

[15] Article 25 section (1) and (2) Government Regulation 29/2021.

[16] Article 62 section (1) Law Number 8 of 1999 on Consumer Protection.