12/07/2025
Quick Recap: Part 2
Insights from Scent of Indonesia
Indonesia Regulatory Shift:
Halal Certification Mandatory by October 2026
During casual conversations with a few brand owners at the event, we learned about a significant regulation in the works. After fact-checking and further reading, we confirmed that Indonesia’s Government Regulation No. 42/2024 will require all cosmetic and personal care products—including fragrances—to be halal-certified by October 17, 2026.
This move is part of Indonesia’s broader effort to set higher industry standards, particularly in the halal segment. Fragrance houses and OEM manufacturers will now need to ensure full halal compliance from upstream materials to finished products.
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Market Implications
🌻 Fragrance Houses ~
The upcoming regulation will push fragrance houses to meet stricter sourcing and compliance demands. As a result, more fragrance houses are now setting up regional offices and manufacturing facilities in Indonesia, where they can integrate halal processes more seamlessly and access a growing domestic market.
🌻Brand Positioning & Export Readiness ~
Indonesian brands that are BPOM-registered, halal-certified, and supported by large-scale production now enjoy stronger positioning, especially for export to Muslim-majority markets like Malaysia. With volume, compliance, and competitive pricing on their side, they are well-prepared to scale quickly.
🌻Brand Entry into Malaysia~
Malaysian distributors are taking notice. Many are aggressively bringing in Indonesian brands as they see clear profit potential. This increases competition in the local market.
🌻Pressure on Local Malaysian Brands~
Local brand owners, especially indie players with limited resources, now face mounting pressure. Competing on price, volume, and compliance readiness becomes more difficult, especially when larger regional players are entering with a head start.
PS: If we truly want to support Malaysian fragrance brand owners, we need to ask: how can we help effectively? It’s not enough to say one thing and act in another direction.
We can’t fix the market issues overnight, but we must set the foundation right from the beginning—with clear support systems, strategic planning, and long-term vision.
Right now, Malaysia isn’t the more competitive ground, but with the right approach, it doesn’t have to fall behind.
Just my two cents, something worth thinking about as the industry moves forward.