Heightening competition in history made the Ministry of Trade put in effect 66 Indonesia National Standard [SNI] on some industrial products by 2014. The objective was to strengthen competition and protect consumers. Also to build up defences against invasion of imported products, a non tariff barrier instrument like SNI was indispensable. Thereby SNI certified local products could easily enter the domestic market. By this system, imported products must meet SNI quality standard; meaning low quality imported products could be disqualified in screening procedure.
By the time the ASEAN Economic Community [AEC] was effective in 2015, foreign products could freely enter Indonesia, as there would be no tariff barrier. It would be mandatory to apply SNI on 66 upgraded product like electronic products, furniture, metalworks, basic chemicals and downstream products. There were also F&B products, automotives and marine products. “SNI is most needed to step up competitiveness of domestic products,” Secretary General of the Ministry of Industry Anshari Bukhari stated in Jakarta on Monday [13/1].
He elaborated that the SNI system would begin with issuance of technical regulation, inspection of SNI in the factory, Test labs and in the market up to quality infra-structure. Basically SNI was voluntary and periodic. However, the Ministry of industry would stipulate certain SNI which was compulsory for consumer protection in regard to safety, security, hygiene, and environment [K3L] caused bu circulation of non standard products.
Anshari explained that in the Industrial Law which was passed only last December, the Government put sanction as criminal charge on misuse of Mandatory SNI. Article 120 point 1 of Criminal Law stated that every person who deliberately produce, import or circulate products goods and services which were not SNI qualified in terms of technical specification and/or not in accordance with directions as meant in Article 53 paragraph 1 point b, would be charged with 5 years imprisonment at the longest and maximum fine of Rp 3 billion at the most.
Article 53 paragraph 1 point b stated that every person was prohibited to produce, import, and/or distribute goods or services which were not SNI qualified in terms of technical specification and/or not in accordance with the mandatory guidelines. Article 120 Paragraph 2 mentioned that any person who by his negligence produced, import and/or distribute industrial goods and services which was not in accordance with SNI standard were liable to punishment of maximum 3 years imprisonment or maximum fine of Rp 1 billion.
Today the Ministry of Industry listed around 9,320 SNI product categories consisting of mandatory and voluntary SNI. 4,108 were in the industry sector and only 87 were mandatory SNI. To strengthen competitiveness, the Ministry of Industry would continue implement standardization. Anshari was optimistic that implementation of SNI could protect domestic industry. The situation was that lately many electronic products were imported but they were easily damaged and disadvantage consumers. Naturally, application of SNI would be beneficial to consumers and contributive to strengthening of competitive edge. (SS)
Business News - January 17, 2014