Hobby of Making Pastries? Let’s Make a Business Idea and Get to Know the Permits!
“Opening a business from a hobby is indeed fun, one of which is a pastry-processed food business. Even though it is only a home production, business actors still have to take care of their business permits.”
Taking advantage of the hobby to be used in a business field is indeed worth trying. Besides giving profit, we also enjoy the process. One type of hobby that is loved by many people is making processed flour into snacks, one of which is pastries.
Incidentally, the month of Ramadan will soon arrive. Usually, the market demand for pastries is soaring. Of course, this is an opportunity to start a business making cookies at home.
If you are sure to set up a pastry-making business in the long term, then don’t forget to register your business license. Even though the location of the business is at home, it is obligatory to keep taking care of business permits.
Standard Indonesian Business Field Classifications (KBLI)
Before carrying out further business licensing, each business actor is required to have a Business Identification Number (NIB).
Based on Government Regulation Number 5 of 2021 concerning the Implementation of Risk-Based Business Licensing (PP No. 5/2021), NIB is proof of registration for business actors as identification to carry out their business activities. NIB can be administered online through the Online Single Submission (OSS) page.
The next thing that must be determined is the KBLI for the pastry business. In this case, the possible KBLI is 10710 (Bread and Cake Product Industry). After that, you can continue the business licensing process.
Certificate of Fulfillment of Household Production Food Industry Commitment (SPP-IRT)
The definition of home industry (IRT) is regulated in the Food and Drug Supervisory Agency Regulation Number 22 of 2018 concerning Guidelines for the Granting of Certificates for Home Industry Food Production (PBPOM No. 22/2018), which is a food company that has a place of business in the residence with equipment manual to semi-automatic food processing.
The points of this definition are “place of business in residence” and “manual to semi-automatic food production process”.
So, making pastries that are still done at home and using tools with the above criteria are included in the home industry (IRT) processed food business sector. In addition, the IRT pastry-processed food business has a medium-low risk level.
Business actors are also required to take care of business licensing with a Business Identification Number (NIB) and an IRT food distribution permit.
Since Law Number 11 of 2020 concerning Job Creation comes into effect, there has been an adjustment to the name for the IRT food distribution permit. The adjustment becomes the Certificate of Fulfillment of the Household Production Food Industry Commitment (SPP-IRT).
The difference with the previous version is only the name and process, the rest is still the same as regulated in PBPOM No. 22/2018.
Several new adjustments for the management of SPP-IRT are contained in 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 (PBPOM No.10/2021).
The management of this new version of SPP-IRT can be managed through the OSS system. The SPP-IRT is also issued immediately after completing the data and uploading several documents to the OSS system. No need to wait for approval from the local health office.
The following are the requirements to apply for a distribution permit for IRT processed food:
First, the general requirements, including:
- 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
- Comply with the provisions on labels and advertisements for processed food.
Second, special conditions, 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. Create access rights to be able to enter the OSS system, then immediately wait for the issuance of the NIB. Then, you can immediately take care of the issuance of the SPP-IRT through the SPP-IRT website or application.
If you have pocketed the NIB and SPP-IRT, then the business of making pastries has legality, so it can immediately run business activities. However, it should be remembered that business actors are obliged to fulfill the commitments in this new version of the 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 health office. The supervision is carried out for 3 (three) months since the SPP-IRT is issued from the OSS system.
However, business actors can still be given the opportunity for another 3 (three) months if they have not completed fulfilling their commitments on the previous occasion.
As a reminder, SPP-IRT is only valid for 5 (five) years (PBPOM No. 22/2018). Therefore, business actors are required to renew at least 6 (six) months before the SPP-IRT ends. The consequence if the SPP-IRT is no longer valid is that it is prohibited to distribute processed food products.
Do you still confused about how to register for SPP-IRT on the latest OSS system? Or want to take care of the legality of your business? Consult us, Prolegal!
Author & Editor: Bidari Aufa Sinarizqi
Translator: Desak Nyoman Ratna Sari