Cookie Business Ahead of Eid, Here Are the Legalities to Handle

The month of Ramadan not only brings blessings to Muslims who are fasting, but also to a number of people who are in the food business, including pastries. Yes, ahead of the Eid al-Fitr or Lebaran celebration, cookies become one of the favorite foods and are sought after by consumers. The various types of cookies include nastar, kastengel, snow princess, cat tongue cookies, and various others. This causes the demand for cookies to increase sharply, even up to 200 percent compared to normal days. The high market demand for pastries is usually used as an opportunity to profit from the seasonal business. Well, is your KH Friend also one of those interested in opening a pastry business ahead of Lebaran 2024? Let’s find out the potential and business legalities for running a pastry business in the following article.

Profitable Potential of Cookie Business Ahead of Eid

Currently, business opportunities in Indonesia, especially in the culinary field, are very promising and have great potential and good profits. Well, one of the promising culinary businesses is the pastry business. This one business has great potential, given the high consumer demand, especially when entering the fasting period until Eid. Cookies have many types and shapes as well as different flavors. Usually, the flavors are made according to the tastes of the local community so that they are liked and bought by many people and do not rule out the possibility of becoming a typical food of the region. In addition, cookies are also quite easy to make and have a relatively longer expiration period compared to wet cookies. Moreover, nowadays there are many new pastry recipes that you can choose from. The time to sell pastries is also quite flexible, especially for those of you who want to make a pastry business as a side business. One entrepreneur who has successfully run a pastry business is Diah Arfianti, owner of Diah Cookies. Since 2001, Ms. Diah began marketing her homemade cookies to earn extra income at every moment before Eid. However, since her husband was laid off in 2012, Mrs. Diah decided to start selling cookies not only during Eid, considering that the sales of her cookies have increased from year to year. Initially, Diah Cookies only provided 3 variants, namely kastengel, choco chip, and putri salju. But, now, there are 23 variants of cookies that customers can choose from. Besides Ms. Diah, there are also women from Lubuklinggau, Tivonny and Tiara, who successfully run a cookie business as a source of annual income. At least 10 types of cookies are made and all of them have been flooded with orders since the beginning of Ramadan. Hundreds of jars of various types of cookies including nestum and klelon have been sold. Each jar costs the two creative women Rp95,000 to Rp135,000. Both market their products using social media and their own cake shops. To make it more attractive, the two also provide Lebaran hampers containing a number of jars of variants of pastries ordered by buyers at varying prices.

Open a Cookie Business, Don’t Forget the Legalities!

Welcoming the moment of Eid al-Fitr, the demand for pastries in the community is increasing, making it a promising business opportunity for business actors. However, it should be noted that for prospective business actors who will start a pastry business, there are several licenses based on the level of risk that must be fulfilled by business actors as legality to carry out business activities. So, what are the licenses for the pastry business that mushroomed in the community when entering the Eid celebration?

Business Licensing

Before opening a pastry business, every business actor is required to obtain a business license based on the Indonesian Standard Field Classification (KBLI) in the Online Single Submission (OSS) system. The KBLI for the pastry business in the OSS system is KBLI 10710-Bread and Cake Products Industry, which means that micro, small, and medium enterprises have a low risk level. Meanwhile, large businesses are included in the high risk level. Article 12 paragraph (1) of PP 5/2021 explains that business licensing for low-risk activities consists of a Business Identification Number (NIB). Meanwhile, the high risk level consists of NIB and Permit (Article 15 paragraph (1) of GR 5/2021).

SPP-IRT

For businesses that produce pastries in a residential area with manual to semi-automatic food processing equipment or generally micro and small-scale businesses are required to have a Household Industry Food Production Certificate (SPP-IRT). The requirements for obtaining SPP-IRT are as follows:

Have a food safety training certificate.
The food production facilities of the Food Household Industry (IRTP) have met the requirements after inspection.
Food Labeling in accordance with the prevailing laws and regulations.

Halal Certificate

Based on Article 2 paragraph (1) of Government Regulation Number 39 of 2021 concerning the Implementation of the Halal Product Guarantee Field (PP 39/2021) products that enter, circulate, and are traded in the territory of Indonesia must be halal certified.

This is a guarantee of halal products as legal certainty for the halalness of a product as evidenced by a halal certificate. Halal certificates are given to products that come from halal ingredients and fulfill the halal product process.

Food Circulation Permit

Business actors in selling pastry products are required to obtain a distribution permit from the Food and Drug Administration (BPOM). Article 5 paragraph (2) of BPOM Regulation 23/2023 explains that processed food distribution permits are included in Business Licenses to Support Business Activities (PB UMKU) which are issued as a form of new registration approval.

Industrial Business License (IUI)

This business permit is required for business actors who start their business through their own production, based on the number of workers and/or investment value. This is regulated in Government Regulation Number 107 of 2015 concerning Industrial Business License. IUI is further classified into small industry, medium industry, and large industry, which are determined based on the number of workers and/or investment value. With the legality fulfilled, customers will have more confidence in the quality and reliability of the pastry products sold. This builds a positive image of the business in the eyes of consumers, which can increase customer loyalty and expand market share. Not only that, by having the necessary licenses and following food safety guidelines, businesses ensure that the pastries produced are safe for consumption by customers. This is important to prevent foodborne illness and ensure that the products meet the set safety standards.

KH Contact

So how, are you interested in trying this business? Who knows, if successful, you can not only make it a seasonal business but can also become a permanent business that is growing. Therefore, there is nothing wrong with trying a dry business and don’t forget to complete the business legality!

To get started, you can first consult with Kontrak Hukum. Together with professional experts, you will get a free consultation on what and how the process or steps must be taken in running a business, including what legal documents are needed. Let’s run a business easily, safely and affordably by visiting the KH Services – Starting a Business page. If you have questions about other business needs, you can also contact us at Ask KH or send a direct message (DM) to Instagram @kontrakhukum.