Problems relating to Trade and Investment on Indonesia

 
19. Industrial standards, approval of safety standards
Issue
Issue details
Requests
Reference
(1) Compulsory Standard enforced on Steel Products - On 1 January 2009, compulsory standard was implemented on zinc plated steel plate for the construction market.
- On 6 May 2009, compulsory standard was implemented on hot-rolled steel including thick plate, provided, however, that, MOI's approval suffices on certain hot-rolled steel such as those used for car, electric or electronic products, those less than 1.8 mm in thickness or more than 25 mm in thickness.
- On 6 July 2009, GOI implemented compulsory standard for zinc / aluminum alloy coated steel sheet.
- On 11 October 2010, GOI notified WTO TBT (Technical Barrier to Trade) of its introduction of compulsory standard on tin plate, section steel, twisted wire, and prestressed concrete (PC) steel wire.
- On 1 June 2011, GOI implemented compulsory standard for cold rolled steel plates. The standard expressly provides exclusion from application of this standard, namely, steel materials having specifications different from SNI Standard, and steel materials for use as raw materials in car and its parts industries, Home electric appliances, electric/electronic and their parts industries, subject to acquisition of "technical diagnosis statement" issued by Ministry of Industry (listing in annex: "Items Exempted from Application" Japan Iron and Steel Federation Standard (JISF Standard), and certain user / manufacturer standards).
- On 21 February 2012, GOI tuned the section steel standard into a compulsory standard.
- It is requested that GOI:
-- repeals the compulsive standard system and,
-- clarifies and streamlines the procedures (including the exclusionary system).
- MOI regulations
- Technical Guidance
  (Action)
- On 3 December 2014, "compulsory standard on steel bars" was enforced for implementation.
- On 20 January 2015, new technical guidance was implemented on hot rolled steel sheets, such as heavy plate.
(2) Vexatiously Complex Procedures and Delays in Acquisition of Safety Approval [Standard National Indonesia (SNI)] - The National Standardization Agency of Indonesia (NSAI) frequently requires trip to PRC, etc. for on-site safety standard inspection at the factory of exporting country in connection with SNI (Standar Nasional Indonesia) approvals. Acquisition of SNI alone takes a long lead-time (for 2-months or more), including the on-site inspection trip.
The scope of the subject goods is expanding. From 2012, large products such as air-conditioners, refrigerators, washing machines, etc. are included. Sometimes, in the case of new products, inclusive of these large products, it can be difficult to receive factory inspection a few months ahead of the sales launch. However, without SNI approvals, goods subject to SNI cannot be imported and cleared through the Customs, halting other procedures such as acquisition of various other licences and approvals, import of sales samples, etc., endangering the new product launch at the desired deadline.

- SNI standard approval is a mandatory requirement for electric wires destined to private sectors. It costs more than 10 million yen and the period of more than 1-year for SNI standard acquisition.
- It is requested that NSAI reviews the entire standards / procedures for grant of SNI approvals, including the factory inspection on a pragmatic basis, to minimise the extra long lead-time now envisaged especially as regards introduction of new products.
- It is requested that GOI approves import of electric wires without approval labels, in so far as the products satisfy the SNI standard.
- Water Pump: SNI 04-6292.2.41:2003
- Electric Iron: SNI 04-6292.2.3:2003
- CRT TV: SNI 04-6253:2003
- Minister of Industry Regulation No.50/M-IND/PER/5/2011, Compulsion of the SNI Observance on the Specified 6-Cable Items
  (Action)
- On 8 June 2010, Ms Mohamad S. Hidayat, Minister of Industry announced her intention to promulgate compulsory SNI (Standar Nasional Indonesia , Indonesian National Standard) covering 25 items of industrial products during 2010, in preparation for import of low quality products into Indonesia under Indonesian FTA (particularly, ACFTA). The new SNI sets forth standard for cars, bicycles, ceramic tiles, chemical goods, electronic equipment, electric parts, steel materials, etc. All subject goods must satisfy the SNI requirements, without which sales of the subject goods in Indonesia is prohibited. According to the mass-media report, Mr. Dedi Mulyadi, Head of Industrial Research and Development Agency at the Industry Ministry stated: "The new SNI will protect the domestic consumers from low quality products and will defend the domestic manufacturers from the foreign products' competition."

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