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How to Start a Lip Gloss Business in Indonesia?

How to Start a Lip Gloss Business in Indonesia?

Starting a business in Indonesia can be difficult, but with the right planning and advice, it can be a successful endeavor. If you’re thinking of starting a lip gloss business in Indonesia, there are some things you need to know. In this blog post, we’ll discuss the basics of starting a lip gloss companybusiness in Indonesia, such as setting up your company, registering with the government, and choosing the right products and suppliers. So if you’re ready to start your own lip gloss business in Indonesia, keep reading!

Why Indonesia?

Indonesia has one of the fastest-growing economies in the world. The country has a young population with a growing middle class. This makes Indonesia an attractive market for lip gloss products. In addition, the Indonesian government is supportive of businesses and offers various incentives for foreign investors. The government has implemented investor-friendly policies to encourage more businesses to enter the market. So if you’re thinking of starting a lip gloss business in Indonesia, it’s a great time to do so!

Why Indonesia?

Starting a Business in Indonesia

Indonesia is a country with a fast-growing economy and offers many opportunities for entrepreneurs. Starting a business in Indonesia can be a challenge, but there are many resources available to help you get started. We have got a list of things to think about before you make the transition.

The Positive Investment List

In Indonesia, to establish a foreign direct investment firm known as PT PMA, you must first decide which commercial industries or sectors you want to invest in, according to the Indonesian Standard Business Classification (Klasifikasi Baku Lapangan Usaha Indonesia or KBLI). Presidential Regulation 10/2021, which has a positive investment list was published to entice more investors and make doing business in Indonesia easier. Make sure that your business falls under this list.

The Right Legal Entity

The next step is to establish the right legal entity for your business. You can choose to set up a PT PMA. This type of company requires at least two shareholders and a minimum capital of IDR 10 billion.

Furthermore, a foreign investor may establish a Representative Office (Kantor Perwakilan Perusahaan Asing or KPPA) to carry out market research. However, a representative office cannot carry out operational activities such as signing contracts or receiving payments from clients.

Legal Documents

There are several legal documents a business needs to procure before being able to establish its operations. The investor must first acquire a Deed of Incorporation or the Articles of Association and legalize the business through a public notary before beginning operations. The banking transactions have to happen through a company bank account as well. 

Starting a Business in Indonesia


The location of the business is important too.  Depending on the size of the business, either a storefront or office space can be rented. The most important thing is to make sure that the chosen location has the correct zoning and permits in place. There are specific industrial zones set up for factories and such. 


After taking care of the necessary paperwork and finding the right location, the next step is to start procuring the resources. Yes, this includes human resources as well. Look up the regulations for employment, especially if you intend to hire foreign workers. 

You will also need to think about the machines and equipment needed for production, storage, and shipping. For a small business, it might be possible to lease or rent some of this machinery. Of course, don’t forget the raw materials! Depending on the ingredients used, it is important to find suppliers that can provide consistent quality and supply.

How to Start Your Own Lip Gloss Business?

Now let’s get down to business. Now that we have discussed what we need to do to establish a business, it is time to focus on what we need to do to start a “lip gloss” business

Determine Your Business Model

The first step is to determine what kind of business model you want to set up. Do you want to be a manufacturer or a distributor? Both have their ups and downs. If you wish to be a distributor, you may locate several firms that will provide you with lip gloss, sales materials, and other information you need to get started.

Learn How to Make Lip Gloss

If you decide to be a manufacturer, you will have to learn how to make lip gloss. Depending on the type of lip gloss being produced, different ingredients will be required. You will have to consider what kind of oils, waxes, essences, etc. to use in your manufacturing. You would also have to think about the packaging (wands, tubes, tubs, etc.). In addition to these, you’ll have to learn the manufacturing process. Will your lip gloss act like a lip balm as well?

How to Start Your Own Lip Gloss Business?

Identify Your Target Market

Lip gloss is a cosmetic product that is used by people of all ages, genders, and races. You will have to identify your target market and what they are expecting. After you identify your target market, determine what type of product they are looking for. This will help you customize products that meet their needs and wants. You can either focus on one market segment or expand into several segments. 

Register Your Business

Once you have completed the above three steps,  you need to register your business. This can be done online or at the local government office. You will need to provide them with your business name, address, contact information, and type of business. We discussed this already in the section above. 

Get Insurance

As your company expands, you’ll need insurance to safeguard it. In the event of an emergency, insurance can assist to alleviate your company’s burden. You will have to get General Liability Insurance and Product Liability Insurance to protect your business against possible lawsuits.

The Cost of Starting a Lip Gloss Business

You will have to invest some capital into the business even before you begin anything.  The amount you need to spend will depend on the size of the company you want to start. You will have to consider the material sourcing, manufacturing facilities, distribution channels, labor, etc. All of these cost money, and you need to have sufficient funding until your products start to bring revenue.

Finding the Right Vendor

Finding the right distribution channels can be challenging. Whether you have in-house distribution or third-party vendors can depend on the available resources. There are many online resources that can be used to find potential vendors. Try conducting a search on Google or on social media platforms such as LinkedIn.

Build Your Brand 

A good brand will help your lip gloss business to be successful in the long term. A strong brand will make your products more recognizable and give them a competitive advantage. It will also help you build customer loyalty. Identify your unique selling proposition (USP) and build a brand around it. What kind of image do you want to project and what is the story you want to tell; let this be the foundation of your branding strategy.

Pricing Your Products 

Next, you have to decide the price of your products.  Many factors can affect the price of your product. The most important factor is the cost of production. Other factors include shipping, taxes, and markup. Once you have a clear understanding of all the costs involved, you can start to develop a pricing strategy.

How to Market Your Lip Gloss Business?

Once you have set up your business, you need to start thinking about how to get customers. There are a few ways to market your products, including online channels and social media. You can also participate in trade shows and markets, which can be great opportunities to connect with potential customers. Of course, don’t forget the power of digital marketing! We will discuss more on this in the next section.

Digital Marketing Solutions for Your Business

For a start-up business like a lip gloss company, the most crucial thing is to generate awareness about the brand and products. The company should focus on its target market and create content that would resonate with them. Indonesia has a fast-growing digital community. This presents a great opportunity for businesses to connect with potential customers online. There are a few ways to market your products online. One way is to create a website and use search engine optimization (SEO). A website is a great way to showcase your products and services. Make sure to include high-quality images and product descriptions. Use SEO to ensure that your website appears high in the SERPs.

You can also use social media platforms to market your business. Platforms such as FacebookInstagram and YouTube are excellent ways to attract the digitally savvy younger generation. Use hashtags, post attractive photos and videos, and collaborate with other businesses and influencers.

Getting the service of a digital marketing agency like Inquivix can benefit such businesses in various ways. Since we are experienced in handling all digital marketing platforms, our expertise can reduce your burden. We provide customized digital marketing solutions to suit your business’s needs with affordable pricing packages. Furthermore, Inquivix specializes in Asian markets and we have specialized digital marketing solutions for Indonesia which makes us your ideal digital marketing partner.


Lip gloss is a fun, easy way to add some color and shine to your look. If you’re interested in starting your own lip gloss business, we hope the information provided in this post has been helpful. Indonesia offers a great opportunity for businesses looking to expand into new markets, and our team of experts can help you get started. We provide a full range of digital marketing solutions that will help you reach your target consumers and grow your business. Have questions or need assistance getting started? Contact us Inquivix today – we’d be happy to help!