How to Choose a Contract Manufacturer in Indonesia

How to Choose a Contract Manufacturer in Indonesia

If you are planning to develop products in Indonesia, choosing a contract manufacturing service will be a strategic move. But before you select and commit to a contract manufacturer in Indonesia, these are some essential questions you should ask yourself:

  • What’s your company’s value?

Companies consistently put their own values ​​to the fore. If you are developing an eco-friendly product, make sure your candidates are not using opposing processes such as animal testing. Choose a contract manufacturing company that shares the same value as your company.

  • How much is your budget?

People use contract manufacturing for two reasons; it’s cost-effective and simplifies the production process. Despite all the reasons, contract manufacturing is cheaper than in-house manufacturing. You should ensure that your allocation meets the reasonable budget of the candidate.

  • Do you actually need a contract manufacturer?

After researching contract manufacturing in Indonesia, ask yourself: Does contract manufacturing save you time? Are they more cost-effective? If possible, you can use a local consultant. 

Many contract manufacturing industries operate in Indonesia, including those that produce food, textiles, FMCG, pharmaceuticals, electronics, personal care products, and cosmetics. Due to the strong market demand in recent years, personal care and cosmetics have become more and more well-liked.

To choose a contract manufacturer in Indonesia, you must consider the following fundamentals.

1. Capacity

Only outsource your products to contract manufacturers that align with your business objectives. Make sure the candidates can guarantee the quantity and quality you want to produce. The average manufacturing contract in Indonesia offers a minimum order quality of 1,000 pieces, depending on the type of product you want to develop. 

2. Production process

It is not only the production process that is the most crucial, but also the end-to-end processes. Where will the raw materials come from, how are they processed, and do they meet national standards? How about shipping? Are there any extra and unexpected costs?

3. Expertise

Business success is also greatly influenced by the people behind the scenes, from the frontliners in charge of management and researchers to practitioners who will produce your products. These are people that are recruited professionally with trustworthy qualifications.

4. Facility and regulatory

The production equipment must meet the standard issued by the National and International Standardization Agency (SNI) and a production method recognized by the Indonesian Food and Drug Authority (BPOM) through Good Manufacturing Practice (GMP) certification. Candidates must thus achieve for Halal Assurance System (SJH) issued by the Indonesian Ulema Council (MUI).

5. Experience

This is not about how long they have been in this business but whether the products created meet the client’s goals and product competitiveness in the market. Find out if any well-known brands have used their services.

6. Location

Your target market will also play a role in this point. A contract manufacturer in Java will spare you from the costly and unpredictably shipping cost if Java is your target area. 

 

Indocare B2B is a company that offers contract manufacturing services with expertise in supplements, and personal care, including skincare—located in Jakarta, with experience creating and manufacturing ideal products for domestic and foreign clients. For foreigners, we offer a very reliable one-stop solution service.

Get a free consultation with our team today to learn more about how we can handle the development of your products in Indonesia.


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