Analyzed Law – Trading activities in Indonesia are regulated by various regulations and require compliance with the requirements set by the relevant institutions. These provisions certainly need to be fulfilled by business actors in order to carry out trading activities smoothly. One of the requirements fulfilled by business actors is fulfilling the requirements of the Indonesian National Standard (SNI). The Indonesian National Standard (SNI) is a standard that applies nationally in Indonesia which is formulated by a technical committee and determined by the National Standardization Body (BSN). This requirement is not absolutely mandatory, but there are several commodities that are required to apply the application of the SNI. Therefore, business actors need to pay attention to several things in the form of:
Commodities that require compliance with Indonesian National Standards (SNI)
Provisions regarding the implementation of Indonesian National Standards (SNI) are regulated in Law No. 20 of 2014 concerning Standardization and Conformity Assessment. The regulation aims to protect the interests of the state and society in order to create standards that apply nationally. The application and enforcement of SNI are basically voluntary and mandatory as regulated in Article 20 of the law a quo, but in Article 24 of the law, the mandatory application of SNI is based on ministerial regulations or heads of non-ministerial government institutions which must be obeyed by business actors. Examples of ministerial regulations that regulate the obligation to implement SNI include:
● Minister of Industry Regulation No. 24/M-IND/PER/4/2013 regarding SNI obligations for children’s toys.
● Minister of Industry Regulation No. 76/M-IND/PER/9/2015 regarding SNI obligations for vehicle tire products.
● Minister of Industry Regulation No. 79/M-IND/PER/9/2015. related to SNI obligations for helmet products for two-wheeled vehicle drivers.
● Minister of Industry Regulation No. 19/M-IND/PER/2/2009 regarding the mandatory implementation of Indonesian National Standards (SNI) for fertilizer.
The authorized institution in implementing Indonesian National Standards (SNI)
The institution with authority to fulfill SNI for trade in goods in Indonesia is given to the National Standardization Body (BSN). BSN has the main role in establishing, developing, and promoting national standards for various products and services.
Some of the main tasks and functions of BSN:
1. Standard Development: BSN is responsible for developing SNI through a process involving various stakeholders, including government, industry, academia, and the community.
2. Certification and Conformity Assessment: BSN collaborates with certification bodies and test laboratories to ensure that products and services comply with SNI. Products that have passed the test will receive an SNI certificate.
3. Implementation and Supervision: BSN facilitates the implementation of SNI through coordination with relevant ministries and institutions and supervises its implementation in the field.
4. Extension and Education: BSN conducts various outreach and education activities to the public and business actors regarding the importance of standards and the benefits of implementing SNI.
Apart from BSN, there are other institutions that play a role in monitoring and implementing SNI, such as:
1. Ministry of Industry: Supervises the industry to ensure compliance with SNI.
2. Ministry of Trade: Supervise the circulation of goods in the market to ensure that the products being traded meet SNI.
3. Food and Drug Supervisory Agency (BPOM): Responsible for the fulfillment of the standards for food and drug products.
The purpose of implementing Indonesian National Standards (SNI) in Trade
The application of Indonesian National Standards (SNI) in the trade of goods in Indonesia has several important objectives for the state, consumers and business actors, including:
1. For the Country
● Increasing National Product Competitiveness:
The implementation of SNI helps improve product quality so that it can compete in international markets. Good standards ensure that Indonesian products have a good reputation in the global market.
● Protecting the National Economy:
With clear standards, entry of low-quality or dangerous products from abroad can be restricted, thereby protecting domestic industry.
● Driving Economic Growth:
Products that meet SNI have greater potential to be accepted in international markets, which in turn increases exports and national economic growth.
● Effective Supervision and Regulation:
Standards provide a clear framework for the supervision and regulation of products on the market, making it easier for the government to carry out supervision and law enforcement.
2. For the Community
● Guarantee Product Safety and Quality:
SNI ensures that products circulating on the market meet certain safety and quality standards, thereby protecting consumers from dangerous or unsuitable products.
● Increasing Consumer Satisfaction:
Products that meet standards tend to be more reliable and of higher quality, which increases consumer satisfaction with the goods they purchase.
● Provide Clear Information:
Standards usually include clear labels and product information, helping consumers make better decisions when purchasing goods.
3. For Business Actors
● Increase Market Confidence:
Products that meet SNI gain more trust from consumers, increasing the product’s reputation and competitiveness in the market.
● Access to Broader Market:
SNI certification can open up opportunities to enter a wider market, both domestically and internationally, because many countries and distributors only accept certified products.
● Production Efficiency and Cost Reduction:
Following standards can improve production efficiency and reduce long-term production costs through implementing best practices and reducing waste.
● Regulatory Compliance:
Ensure compliance with applicable regulations so as to prevent business actors from sanctions or legal problems that could arise due to non-compliance with established standards.
● Product Innovation and Development:
The implementation of standards encourages business actors to continue to innovate and improve the quality of their products so that they remain in line with developments in applicable standards.
Important Documents in Fulfilling Indonesian National Standards (SNI)
Business actors in fulfilling the requirements for fulfilling Indonesian National Standards (SNI) need to prepare documents, including:
1. Company documents:
● Deed of Company Establishment and Amendments: This document shows the legality and identity of the company.
● Business Identification Number (NIB): As proof that the company has been registered and has a business license.
● Operational Permit: Permits that are relevant to the company’s operational activities, such as Industrial Business Permits (IUI).
2. Product Technical Documents:
● Product Description: Detailed information regarding the technical specifications of the product to be certified.
● Usage Manual: A clear product usage guide that complies with applicable standards.
● Laboratory Test Report: Product test results from an accredited laboratory indicating that the product meets SNI technical requirements.
3. Production Process Documents:
● Production Process Flowchart: A Flowchart diagram showing the steps in a production process.
● Quality Control Procedures: A document that describes the procedures implemented to ensure product quality is maintained.
4. Suitability Assessment Document:
● Quality Management System Certificate: For example, ISO 9001 certificate if available.
● Product Traceability Document: Information that allows product traceability from raw materials to finished products.
5. Administrative Documents:
● Certification Application Form: A form provided by the certification body or BSN to start the certification process.
● Proof of Payment: Proof of payment of certification fee set by the certification body or BSN.
6. Other Documents:
● Previous certificate (if any): If the product has a previous certificate, this document needs to be included.
● Statement Letter: A statement letter from the company that the product to be certified complies with the applicable SNI requirements.
Conclusion
Compliance with Indonesian National Standards (SNI) is basically carried out for the benefit of potential consumers to provide quality protection of traded goods. This can be done by increasing the understanding of the importance of fulfilling SNI by business actors. Meanwhile, from the side of authorized institutions, this can be done through cooperation between BSN and related institutions. This is important to ensure that the products circulating in the market meet the standards set to protect consumers and improve the competitiveness of national products in international markets. Compliance with SNI can also provide consumers with a sense of safety and comfort in the use of the goods they consume, thus ensuring the quality of life of the consumers themselves as a community, especially at the national level.
To understand and fulfill the requirements for fulfilling Indonesian National Standards (SNI), you can contact Analyzed Law and Policy through contact on our website.
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