If you’re a foreign brand looking to bring tobacco products into Indonesia, the first thing to know is that tobacco is treated as a controlled health product, and not ordinary consumer goods. 

That means, every product you import needs excise licensing, brand registration with Customs, and compliance with packaging and content rules under the Health Law. The full path involves multiple agencies and typically runs 6 to 9 months from setup to first import. 

This guide covers the import and distribution route for foreign brands looking to sell tobacco products in Indonesia.

Key Legal Framework for Tobacco Registration

In Indonesia, Tobacco is a health-regulated product and is not considered as ordinary consumer goods. Under Government Regulation No. 109 of 2012 (GR 109/2012), regulates tobacco products as materials containing addictive substances for health and protection purposes. 

Because of its status, you have to go through several agencies to register and gain approval depending on the product:

Government Body	Indonesian Name	Key Role for Tobacco Products
BPOM	Badan Pengawas Obat dan Makanan	Post-market surveillance only for tobacco/HPTL products (no pre-market registration). Enforces ingredient disclosure, packaging & labeling rules, and additive testing under PerBPOM 18/2025
Ministry of Finance (Directorate General of Customs & Excise)	Ditjen Bea dan Cukai	Excise licensing (NPPBKC), excise stamps (banderol), import duties
Ministry of Trade	Kemendag	Import approval (Persetujuan Impor), distributor licensing
Ministry of Health	Kemenkes	Health standards, pictorial health warnings, nicotine/tar limits
OSS / BKPM	Online Single Submission	Business licensing (NIB), KBLI classification for business activities

On July 26, 2024, GR 109/2012 was extended to Government Regulation  No. 28 of 2024 (GR 28/2024) under the Health Law. This law further defined what is considered a tobacco product under Indonesian law to include any product containing tobacco derivatives. 

In July 2025, BPOM followed up with Regulation No. 18 of 2025 (PerBPOM 18/2025), which introduced comprehensive product surveillance requirements covering ingredient disclosure, additive testing, and stricter labeling standards. PerBPOM 18/2025 carries a one-year transition period, making full compliance mandatory from July 26, 2026.

What Counts as a Tobacco Product in Indonesia?

GR 28/2024 uses a deliberately broad definition. Any product made wholly or partially from tobacco leaves, plus any product containing nicotine regardless of its form, falls under the framework. 

This includes categories that didn’t fit cleanly under the previous regulatory regime:

Product Category	Examples
Conventional Cigarettes	Kretek (clove cigarettes), white cigarettes, machine-rolled, hand-rolled
Cigars & Leaf Tobacco	Cigars, cigarillos, cut tobacco, pipe tobacco
Electronic Cigarettes (Vape)	Disposable vapes, pod devices, open-system mods, e-liquid
Heated Tobacco Products (HTP)	IQOS, heatsticks, solid e-cigarettes
Nicotine Pouches (Pouch)	Tobacco-free nicotine pouches (e.g., ZYN-type products)
Other Processed Tobacco (HPTL)	Shisha/hookah tobacco, molasses tobacco, chewing tobacco, snuff
Herbal Cigarettes	Cigarettes made from non-tobacco plant materials (e.g., clove, herbs)

Step 1: Setting Up Your Business Entity for Imports

Before you can register any tobacco product in Indonesia, you need a legal business entity. As a foreign investor, this typically means establishing a PT PMA (Limited Liability Company). A PT PMA allows up to 100% foreign ownership for tobacco import and distribution activities, and it’s what gives you the legal standing to apply for the licenses and registrations you’ll need.

Along with your PT PMA, you’ll need a Business Identification Number (NIB) from the OSS system. The NIB now functions as your primary import license, replacing the older API-U (general importer) and API-P (producer importer) licenses. Make sure your NIB is set up under the correct KBLI codes for your activities.

Read our guide on how to start a PT PMA in Indonesia. Emerhub’s local consultants can answer all your questions regarding how to start a business in the country. 

Relevant KBLI Codes for Tobacco Product Businesses

The KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) is Indonesia’s business activity classification system. You must register under the correct KBLI codes to legally conduct your intended activities. Below are the most relevant KBLI codes for tobacco-related businesses:

KBLI Code	Activity Description	Applicable Products	Open for PMA
12011	Manufacture of hand-rolled kretek cigarettes (SKT)	Hand-rolled clove/kretek cigarettes	100% open for FDI
12012	Manufacture of machine-rolled kretek cigarettes (SKM)	Machine-rolled clove/kretek cigarettes	100% open for FDI
12019	Manufacture of other tobacco products	White cigarettes (SPM/SPT), cigars, pipe tobacco, HPTL, herbal cigarettes	100% open for FDI
46335	Wholesale trade of cigarettes and tobacco (Perdagangan Besar Rokok dan Tembakau)	All tobacco products (import and wholesale distribution)	100% open for FDI
47827	Retail trade of cigarettes and tobacco (Perdagangan Eceran Kaki Lima dan Los Pasar Rokok dan Tembakau)	All tobacco products (direct retail/end-consumer sales)	100% open for FDI

For most foreign investors importing and distributing tobacco products in Indonesia, KBLI 46335 is the primary code for wholesale import and distribution across all tobacco product types (e.g. e-cigarettes, nicotine pouches, shisha, and herbal cigarettes).

 If your business also sells directly to end consumers at retail, you will additionally need KBLI 47827. Manufacturing KBLIs (12011, 12012, 12019) only apply if you are producing locally. A company can hold multiple KBLI codes if its activities span both wholesale and retail.

Foreign Ownership Restriction on Cigarette Manufacturing

Under Ministry of Industry Regulation No. 64 of 2015 (Permenperin 64/2015) on Supervision and Control of the Cigarette Industry, the Industrial Business License (IUI/NIB) for cigarette manufacturing is only granted to Small and Medium Industries that partner with Large Industries.

In practice, this means that to set up a cigarette manufacturing operation in Indonesia, your company needs to structure a qualifying partnership with an existing large-scale Indonesian cigarette producer. The permitted forms of partnership include subcontracting arrangements, profit-sharing schemes, operational cooperation, and joint ventures.

This restriction does not apply to import and distribution activities under KBLI 46335, which remain fully open to 100% foreign ownership.

Step 2: Licensing and Registration 

Indonesia’s tobacco industry is considered one of the most highly regulated industries. Due to the nature of these products, they involve public health supervision, product standardization, manufacturing controls, and ongoing compliance. There are import restrictions and excise obligations before you can legally distribute these products to the Indonesian market. 

This regulatory framework applies not only to conventional tobacco products such as rokok kretek, but also to:

• Machine-made cigarettes
• Hand-rolled cigarettes
• E-cigarettes / vape products
• E-liquids
• Nicotine pouches
• Other processed tobacco products

All of these products are categorized as excisable goods under Indonesian regulations and therefore subject to strict supervision by the Directorate General of Customs & Excise (DJBC / Bea Cukai).

1. Obtaining an NPPBKC

The NPPBKC (Nomor Pokok Pengusaha Barang Kena Cukai) is the core license for any company importing or distributing excisable goods in Indonesia. Without it, you cannot legally bring tobacco products into the country for commercial purposes. The license is issued by the Directorate General of Customs and Excise (DGCE) under Excise Law No. 39 of 2007.

All tobacco products, including e-cigarettes, nicotine pouches, and heated tobacco products, are classified as excisable goods. This brings them under DGCE supervision regardless of product format.

Here’s what you need to apply:

• Valid PT PMA documents and NIB
• Tax registration (NPWP)
• Legal domicile in Indonesia
• Physical warehouse with floor plans and site maps
• Trademark Registration
• SNI Registration (if you are a manufacturer and produce your own cigarette)
• NPPBKC Preparation by setup business process presentation for Customs officials
• Site inspection (Berita Acara Pemeriksaan) by Bea Cukai
• Formal statement of responsibility and non-objection if your brand name conflicts with existing licensees

Once issued, the NPPBKC contains your Taxpayer Identification Number and the Identity Number of the Place of Business Activities (NITKU). Moreover, the license is valid for 5 years and renewable.

Emerhub’s local experts can help you apply for NPPBKC in Indonesia. We’ll help you submit all the needed requirements such as your business licenses, company deed, NIB, and tax registration documents to your nearest Customs and Excise Service Office.

2. SNI Preparation

Prior to or during the NPPBKC registration process, manufacturers are generally expected to demonstrate regulatory readiness, including compliance with applicable Indonesian National Standards (SNI).

The SNI process may involve:

• Laboratory testing
• Product conformity assessment
• Production verification
• Technical review
• Packaging and labeling compliance

For tobacco businesses, compliance readiness is an important supporting component during Customs review and operational inspection.

3. Excise Stamps (Banderol)

Once an NPPBKC is issued, you’re also responsible for affixing excise stamps (called banderol) to every tobacco product before it reaches consumers. These stamps confirm that the correct excise duty has been paid. Different stamps apply to different product types such as hand-rolled cigarettes, machine-made cigarettes, and other processed tobacco products.

Importers must order excise stamps from the Ministry of Finance during specific windows (days 1–10 of each month), and products must be stamped before leaving bonded warehouses. For e-cigarettes, this requirement took effect for e-liquids starting January 1, 2025, under Ministry of Finance Regulation No. 96 of 2024.

Step 3: Distributor Licensing (STP)

The STP (Surat Tanda Pendaftaran Distributor) or a Distributor Registration Certificate  proves that a company is officially registered as a distributor, sole distributor, sub-distributor, agent, or sole agent for a specific product and principal. It is a mandatory requirement under Minister of Trade Regulation No. 24 of 2021 for any company operating as a distributor in Indonesia.

Keep in mind that PT PMAs are not permitted to hold an STP Distributor directly. Under the same regulation, a PT PMA cannot serve as a distributor in the legal sense. Instead, Emerhub can act as your STP holder in Indonesia as your registered distributor. 

Step 4: Brand Registration with Customs (Merek Hasil Tembakau)

Before you can import excisable tobacco products commercially, you need to register your tobacco product brand with the Directorate General of Customs and Excise (DJBC). This process is part of the Excise Tariff Determination process and is done through the Customs Excise system (Akses Cukai Online).

Here’s what you need for brand registration with customs:

• Packaging design of the product
• Letter of Authorisation from the Principal (overseas manufacturer or brand owner) to the Indonesian Importer
• Set of application letters (prepared and submitted to DJBC)

Once approved, DJBC issues a Merek Hasil Tembakau. This serves as your unique product identity that encodes your product’s excise tariff, retail selling price (HJE), packaging specifications, and stamp format.

Step 5: Product-Specific Requirements

Each tobacco product has its own specific compliance requirements. Cigarettes, cigars, kretek, shisha tobacco, and other conventional tobacco products are handled under the tobacco-control and excise regime. Meanwhile, e-cigarettes and vape products are more tightly controlled. These products need product testing, ingredient disclosure, and reporting under BPOM’s tobacco/e-cigarette framework.

Conventional Cigarettes, Cigars, and Cut Tobacco

Traditional tobacco products must comply with the health and packaging requirements set by BPOM and the Ministry of Health. Key requirements include:

• Pictorial health warnings must cover at least 50% (under GR 28/2024) of the main display area of the packaging, displayed parallel to the top edge.
• Five different health warning variations must be printed and distributed equally across all product variants.
• Nicotine and tar content must be tested and reported to BPOM by an accredited laboratory.
• Under PerBPOM 18/2025, manufacturers and importers must also disclose all ingredients and additives to BPOM. Any additive not scientifically proven to be safe is prohibited.
• Single-stick sales are prohibited under GR 28/2024 (except for cigars and e-cigarettes). Products must be sold in full packs.

Herbal Cigarettes

Herbal cigarettes are products that look and function like conventional cigarettes but use non-tobacco plant materials. Under Indonesian customs and excise law, they are treated as cigarettes under HS Code 2402.90.10 (other cigarettes containing tobacco substitutes). This classification means they are treated for customs and excise purposes the same way as conventional cigarettes (see above). 

If a herbal cigarette product is marketed as a health or therapeutic product it may trigger separate oversight from BPOM under traditional medicine or health product classifications. For example, if a herbal cigarette claims it helps with breathing or acts as a natural remedy, you may face additional registration requirements on top of the excise and import licensing process. 

Electronic Cigarettes (Vape) and E-Liquids

Vaping products have seen the most significant regulatory updates in recent years. Under GR 28/2024 and PerBPOM 18/2025, e-cigarettes are officially categorized as ‘Other Processed Tobacco Products’ (HPTL), meaning they are regulated on par with conventional cigarettes. 

Here’s what importers and distributors need to know:

Packaging Size Requirements (GR 28/2024):

• Closed-system or disposable cartridge devices: nicotine liquid must not exceed 2 mL per cartridge, with no more than 2 cartridges per package.
• Open-system or refillable devices: nicotine liquid must be sold in containers of exactly 10 mL or 20 mL.
• Solid e-cigarettes (including heated tobacco-style products): must be packaged in sets of 20 sticks.

Testing and Registration Requirements:

• Each product variant must be tested for nicotine content in an accredited laboratory, and results must be reported to BPOM.
• Products must be tested for prohibited additives before distribution, and verified again during the distribution period. The two tests must be conducted by different laboratories.
• All ingredients and additives must be formally disclosed to BPOM.

Labeling Requirements:

• Health warnings in both text and image format are mandatory on all e-cigarette packaging.
• Five different warning variations must be shown equally across all product variants.
• Plain packaging requirements apply. Promotional elements and branding are restricted on the package surface.

These rules apply to both imported and locally manufactured e-cigarettes. For importers, the practical implication is that your product must be fully tested and compliant before you apply for import approval. Non-compliance at the border can result in the goods being held or rejected.

Nicotine Pouches (Pouch)

Nicotine pouches (the small, tobacco-free pouches placed under the lip) are legally sold in Indonesia and fall under the HPTL category. These products are permitted, but with notable restrictions:

• Nicotine content is capped at less than 16.6 mg per pouch.
• Health claims on the product are prohibited.
• Health warnings on packaging are required.
• The excise tax rate for nicotine pouches ranges between 10% and 50% of the rates levied on combustible cigarettes.

Importers of nicotine pouches need to ensure their products are registered under the correct HPTL category and that excise obligations are met. Given that these are relatively new products in the Indonesian market, we recommend you consult with Emerhub’s product registration experts before you export.  

Shisha and Hookah Tobacco

Shisha (also called hookah or waterpipe tobacco) is classified as an HPTL product in Indonesia. It uses a form of tobacco mixed with molasses or fruit flavors and is consumed through a waterpipe. While shisha products can be sold legally in Indonesia, they carry the same regulatory burdens as other tobacco products:

• Products must comply with ingredient disclosure and additive testing requirements under PerBPOM 18/2025.
• Packaging must carry health warnings.
• Excise stamps must be affixed to each product.
• Importers need an active NPPBKC and import approval from the Ministry of Trade.

From a business standpoint, shisha tobacco is commonly imported under HS Code 2403 (other manufactured tobacco and tobacco substitutes). If you are importing shisha specifically for cafe or restaurant use, you still need to ensure that the product is properly registered and that excise duties are paid. Selling unregistered or unstamped shisha products is a violation of Indonesia’s Excise Law.

Step 6: Import Approval from the Ministry of Trade

Once you have your NPPBKC and your products have been tested and prepared for compliance, you need to obtain an Import Approval (Persetujuan Impor) from the Ministry of Trade before your goods can legally enter Indonesian territory. This is applied for through the INATRADE platform (inatrade.kemendag.go.id).

Here’s what you need:

• Valid NIB with API-U or API-P importer status
• NPPBKC (excise license)
• Import declaration detailing the goods
• Laboratory test results confirming nicotine/tar content and additive compliance
• Samples of packaging with health warnings affixed
• Other supporting documents depending on the specific product category

Processing time is generally 2 business days if all documents are complete and in order. Any discrepancies or missing documentation will delay the process, so it’s important to prepare everything carefully before submission.

Register Tobacco Products with Emerhub

Emerhub provides end-to-end assistance for registering tobacco products in Indonesia. Our local experts can help you with compliance audits, entity setup, and submission processes to secure the necessary licenses.

Here’s where we can help you:

• Local Entity or Representative Setup: we act as your Local Authorized Representative (LAR) to submit registrations, bypassing the need for immediate full incorporation.
• Compliance Audit and Classification: Emerhub reviews product formulations, ingredients, and labels against BPOM standards for tobacco derivatives, identifying any additives or nicotine content issues early. We make sure your products meet nicotine/tar thresholds, labeling, and packaging rules.
• Full Registration Process: This includes BPOM e-registration account setup, technical documentation preparation, lab testing coordination, and monitoring until NIE approval.

Fill out the form for a free first-time consultation with one of our compliance experts in Indonesia.