The Ministry of Industry was implementing compulsory Indonesia National Standard [SNI] to protect national consumers and producers from unhealthy competition. A number of industry which were the target for mandatory ISI 2013 were among others electronics, metal, food & drinks, automotive components, upstream chemistry and basic chemistry. The implementation of mandatory SNI was an urgency in certain industry groups in case of stroming low quality, low priced imported products.
Secretary General of the Ministry of Industry, Ansari Bukhari stated in Jakarta on Thursday [2/1] that the Industrial Law passed by the Parliament on December 19, 2013 Law would be enforced on violations of industry. Ansari stated that the sanction would be imposed on SNI violators as SNI was strongly related to health, security, and environmental safety. He said that in Article 20 paragraph 1 it was mentioned that any one who deliberately produce, import or distribute goods or services which was not qualified by SNI standard could be sentenced to 5 years imprisonment, they could also be fined as much as Rp 3 billion.
What if it was not deliberate ? In Article 20, paragraph 2 it was stated that in the event that activities of production, import or trading of goods was not up to the standard due to negligency, the maximum punishment was 3 years of imprisonment and maximum fine of Rp 1 billion. This regulation was amendment to Law no 5 1984 on Industry which was 30 years old. The changes included development of integrated inter-institutional industry, downstreaming of industry and guarantee extention for domestic industry. Besides, through this industry, the Government guaranteed industrial infra-structure including financing, fiscal and non-fiscal.
Furthermore Ansari explained that in anticipating AEC in 2015, the Ministry of Industry was constantly making strategic steps which was transsectoral to strengthen national competitiveness. The effort included among others: to intensify illumination campaign of AEC 2015 to stakeholders of the industry, to accelerate implementation of safeguard and anti-dumping for certain imported products, to expand test- lab facilities, to step up competence of personnel in industry, to scheme up Indonesia National Standard of Competence [SSKNI] in each respective industry sectors, to strengthen IKM small industry and to make new entrepreneurs in industry.
According to Ansari, the application of SNI must be supported by a mechanism to prove that the authority who applied mandatory SNI had applied SNI rules properly. Therefore a professional evaluation mechanism was necessary which would meet demand for good practices in quality standardization in international trading system; such was important so SNI qualified national products could compete globally.
He said that based on experience in many countries, technical regulation was most effective in the effort to protect consumers in regard to safety, security, public health and environmental conservation and the effort to screen low quality imported products.
Business News - January 8, 2014