Earn Profits from Homemade Chocolate Snacks, Take a Peek at the Kinds of Business Licenses
“The household food industry for processed chocolate is indeed tempting. However, don’t forget the obligation to manage the business permit and some certificate documents.”
When doing a job, it feels less if there is no accompanying snack. Actually, not only work, but snacks also act as friends when you are watching movies, reading books, or just as a complement when relaxing on the weekends.
Having a snack is really important, right? According to the Big Indonesian Dictionary, snacks are small meals that usually consist of cakes, compotes, and so on.
One of the most popular snacks is food made from chocolate, such as chocolate cake or chocolate candy. Melted chocolate covered with colorful chocolate sprinkle on top, for example, is sure to make his fans gulp.
It’s no wonder that fans of cakes or chocolate candies are willing to spend their money to get their favorite snack. The popularity of this chocolate can be used as a business idea, right?
Of course you can, especially if you are a direct fan. While processing and tasting chocolate, you can earn a steady income if you are serious about opening a chocolate cake or candy business.
Relatively Easy Business
The business of processed food, cakes or chocolate candy, is a type of industry that can be done at home. The term is home industry food (PIRT).
Even though it is made at home, the legality of the business must still be pocketed. There is no need to worry about fees and the permit process because the risk-based Online Single Submission (OSS) system tends to make licensing easier for entrepreneurs.
Especially if the business category is micro, small and medium enterprises (MSMEs) and the type of industry is household processed food. Check out the terms of his business license in the following discussion.
Business Category and Standard Indonesian Business Field Classifications (KBLI)
Based on Government Regulation Number 7 of 2021 concerning Ease, Protection, and Empowerment of Cooperatives and Micro, Small, and Medium Enterprises (PP 7/2021), if an entrepreneur has a capital of less than Rp1 billion, it is categorized as a micro-enterprise.
If the capital owned is between IDR 1 billion to IDR 5 billion, then it is included in the small business category. Meanwhile, if you have capital above IDR 5 billion to IDR 10 billion, then it is a medium business.
However, there is a special note that the capital listed above does not include the place of business and the land used for its business activities.
If you already know the business category, first make sure the Standard Indonesian Business Field Classifications (KBLI) for chocolate processed foods. KBLI which may be indicated by code 10732, namely “Food Industry of Chocolate and Chocolate Confectionery.”
The KBLI shows a medium-low business risk level for all business categories, whether micro, small, or medium.
Referring to Government Regulation Number 5 of 2021 concerning Implementation of Risk-Based Business Licensing (PP 5/2021), entrepreneurs are required to have a Business Identification Number (NIB) and standard certificate (SS) as business identity and legality of their business activities.
Before taking care of the SS, the business actor must first obtain a NIB. NIB can be managed through the OSS system.
Certificate of Fulfillment of Household Production Food Industry Commitment (SPP-IRT)
The standard certificate referred to for IRTP is the Certificate of Fulfillment of the Household Production Food Industry Commitment (SPP-IRT).
What is meant by The Food Home Industry (IRTP)?
Referring to the Regulation of the Food and Drug Supervisory Agency Number 10 of 2021 concerning Standards for Business Activities and Products in the Implementation of Risk-Based Business Licensing for the Drug and Food Sector (BPOM Regulation 10/2021) provides the definition of IRTP, namely food companies that have a place of business in their residence with equipment manual to semi-automatic food processing.
From this definition, it is implied that the requirements for IRTP are must have a place of business in their own place of residence and to carry out the production process manually using semi-automatic machines.
A cake or chocolate candy processed food business can certainly be categorized in the IRTP, as long as it fulfills these two general requirements.
Before Law Number 11 of 2020 concerning Job Creation (Law 11/2020) came into effect, the certificate for IRTP was called the Food Production Certificate-Household Industry (SPP-IRT).
Then since Law 11/2020 was passed, there has been an adjustment to the name for the IRT food distribution permit. This adjustment becomes the Certificate of Fulfillment of the Home Production Food Industry Commitment (SPP-IRT, with the same abbreviation).
The difference with the previous version is only from the name and licensing procedure, the rest is still the same as regulated in PBPOM No. 22/2018.
Several new things from SPP-IRT are regulated in the Regulation of the Drug and Food Supervisory Agency Number 10 of 2021 concerning Standards for Business Activities and Products in the Implementation of Risk-Based Business Licensing for the Drug and Food Sector (PBPOM No. 10/2021).
SPP-IRT management can be managed through the OSS system because the BPOM https://sppirt.bpom.go.id page has been integrated by the OSS system for data validation of the Business Identification Number (NIB).
SPP-IRT can be issued immediately after completing data completion and uploading several documents to the OSS system. So, there is no need to wait for the local Health Office to ratify the SPP-IRT document.
Requirements to Take Care of SPP-IRT Distribution Permit
The following are the requirements to apply for a distribution permit for IRT processed food:
- General Terms
- Applicant, with the following criteria:
- Individual entrepreneur
- Non-individual business actors (business entities established by foundations; cooperatives; limited partnerships (commanditaire vennootschap); and firm partnerships (vennootschap onder firma))
- Registered home industry processed food data
- Self-declaration of comfirmity regarding compliance with:
- Attending Food Safety Counseling
- Meet the requirements of Good Food Production Methods for Home Industry (CPPB-IRT) or hygiene, sanitation, and documentation
- Fulfilling the requirements for processed food labels and advertisements
- Special requirements must attach documents, which consist of:
- Food Label Design
- Referring to the safety, quality, benefits, and nutrition of Home Industry Processed Food based on BPOM regulations
After that, log in to the OSS system to take care of issuing SPP-IRT.
However, it should be remembered that business actors are obliged to fulfill the commitments in this SPP-IRT.
Referring to PBPOM No.10/2021, the fulfillment of commitments made by IRT processed food business actors is supervised by authorized institutions, one of which is the local district/city Health Office.
The supervision was carried out for three months after the SPP-IRT was issued from the OSS system. However, business actors can still be given another three months’ opportunity if they have not completed fulfilling their commitments on the previous occasion.
Halal Certificate
In addition to SPP-IRT, business actors of IPRT cakes or chocolate candy are also required to include a halal label on their product packaging. The way to get a halal label is to take care of halal certification.
If the business category of the actor is a micro and small unit (UMK), then it can take care of a self-declare halal certification (self-declaration).
This is regulated in the Minister of Religion Regulation Number 10 of 2021 concerning Halal Certification for Micro and Small Business Actors (Permenag 10/2021).
The criteria for self-declare halal certification for MSE actors are as follows (Permenag 10/2021):
- The product is not risky or uses ingredients that have been confirmed to be halal
- The production process is guaranteed to be halal and simple
Meanwhile, the criteria for products that are not at risk or use ingredients that have been confirmed to be halal include (Permenag 10/2021):
- Halal certified or included in the positive list
- Do not use hazardous materials
- Halal has been verified by the PPH companion
Furthermore, for a production process that is confirmed to be halal and simple, it is indicated by the following criteria (Permenag 10/2021):
- Using production equipment with simple technology or manually and/or semi-automatically
- The production process is not subject to irradiation, genetic engineering, ozonation, and the use of hurdles. technologies
- The location, place, and tools of the halal production process are in accordance with the halal product guarantee system
From the several criteria above, self-declare halal certification is indeed in accordance with IPRT’s efforts.
So, for MSE actors who have a cake or chocolate candy PIRT business, they can register for a halal certificate in the self-declare category which is addressed to the Halal Product Assurance Organizing Agency (BPJPH) of the Ministry of Religion.
Still confused about the stages of processing your IPRT business license? We, Prolegal, are ready to solve problems with solutions!
Author: Bidari Aufa Sinarizqi
Translator: Desak Nyoman Ratna Sari