Indonesian Law No. 20 of 2014 on Standardisation and Compliance Assessment is the first law to provide for standards. It covers manufactured goods, services, systems, processes, and individuals, and sets out the institutions that will carry out assessments, development, supervision, of the system. The Indonesian National Standards (SNI) system was formulated by a technical committee and will be overseen by the BSN (National Standardization Agency).
The SNI is a standard that must be complied with for certain designated goods, services, systems and processes in Indonesia. The affixing of the SNI marking on the product or service is an indication that it meets the standard requirements to allow the product to be sold in Indonesia. Currently there are 273 mandatory products that the SNI applies to and which must be labelled. These include electric, wood, rubber, automotive, agro and health products (e.g. medicine, cosmetics, health apparatus and traditional medicines).
Articles 62 up to 73 of the Law provide for criminal penalties in respect of SNIs. Importing any product, or trading and marketing without an SNI or unlawful use of the SNI attracts criminal penalties. This law is now the umbrella law for 37 other regulations relating standardisation, since none of them provide penalties.
The government may ban imports without SNI labels on the basis that they are unfit or unsafe. The BSN and Ministry of Trade are working together to monitor SNI label use in the market.
The standards system is hoped will improve quality in the run up to joining the ASEAN economic community and is part of Indonesia's attempt to build a bigger manufacturing industry. Producers and importers will need to understand which products fall into standards and produce appropriate product labelling.