GOVERNMENT SUPPORTS GLASS ENTERPRENEURS IN APPLYING SNI

Flat and Safety Glass Association (AKLP) supported government’s effort in implementing the Indonesian National Standard (SNI) for flat glass for mirrors. SNI application is mandatory to create a healthy and fair competition, especially before the commencement of the ASEAN Economic Community (AEC) 2015.

For information, Regulation of Minister of Industry that imposes mandatory application of SNI is Regulation of the Minister of Industry No. 34/M-IND/PER/4/2007 on the Application of SNI for Maotor Vehicle Safety Glass and Regulation of Minister of Industry No. 44/M-IND/PER/4/2011 on Amendment to Regulation of Minister of Industry No. 4/M-IND/PER/1/2010 on Mandatory Application of SNI for Flat Glass. While, mandatory SNI for flat glass for mirrors are in the process of notification to the World Trade Organization (WTO).

Chairman III of AKLP, Yustinus Gunawan, in Jakarta on Monday (January 27) said that SNI application for flat glass industry is important to protect consumers and maintain competitiveness of local products. He said that the implementation of SNI is important to ensure that the products circulating in the country are qualified and of certain quality. Moreover, he added that SNI-certified product is a product that is safe for use by consumers.

He explained that in facing the ASEAN Economic Community (AEC) 2015, the government will require 77 SNI in food, electronic, automotive, rubber and wood sectors. He hopes that the Ministry of Industry will continue to consistently apply SNI as a non-tariff barrier (NTB) instrument. Nowadays it has enacted 87 mandatory SNI for various industrial products. By strengthening SNI, the industry will comply with it so that the domestic industry products will have strong competitiveness in the face of AEC 2015.

However, Yustinus said that the domestic glass industry experienced barriers, especially in relation to energy, particularly certainty of gas supply and price for the industry. As a result, the glass industry experienced obstacles to do business expansion. According to him, if energy problem is not immediately resolved, then the industry will be less competitive compared to Malaysia. Because, in Malaysia, gas prices are subsidized by the government.

Yustinus further mentioned that until the end of 2013 the glass industry growth could reach 1.2 million tons. And in 2012, the national glass production reached 1.125 million tons. In general, according to him, over the years, glass production in the country is absorbed more by property and automotive sectors. In 2014, glass demand by the automotive sector is to grow about 8%, while demand by the property sector grows approximately 12.5%. However, the glass industry export performance this year decreased by 5.5% - 6.5%. But, because domestic demand is still maintained, then the growth is still above the average economic growth.

Meanwhile, Aria Bima, Deputy Chairman of Commission VI of the House of Representatives from the Indonesian Democratic Party of Struggle (PDI-P) said that Indonesia should be prepared to face the ASEAN free market 2015. He hopes that the ASEAN free trade does not make Indonesia increasingly dominated by imports. The government, he said, should optimize consumer protection agency. Free trade must be regulated so that Indonesia can adapt. He hopes that the National Standardization Agency (BSN) can reproduce SNI in products which are eligible to compete in the ASEAN free market. With SNI label, he said, Indonesia could implement BARRIER to the influx of foreign goods into the Indonesian market. (E)

Business News - January 29, 2014