Working towards improving market access for European business in Indonesia is one of EuroCham’s main goals. This is primarily driven through the advocacy work of EuroCham’s Working Groups, Seminars/Briefings, and publications whereby specific barriers/solutions to improved market access are addressed and a dialogue constructed with Government officials. One of the main barriers to market access for European companies in Indonesia is national standards.
In many cases Indonesia applies its own standards and certifications also in sectors and industries, where an internationally accepted standard or certifications are available. SNI (Indonesian National Standard) Certification is required for certain products before it can be sold or imported in Indonesia. Guidelines and standards are set by the BSN (National Standards Body) and certificates are issued by certified bodies after the audits are satisfactorily done. Each certification body will focus on a specific range of products.
The existence of Indonesia specific standards (Standard Nasional Indonesia, SNI) forces European companies to implement burdensome testing and certifications that are a real barrier to trade. These obstacles exist in many different areas of industries and it is essential that Indonesia will accept globally recognized standards and testing and that Indonesia does not create additional Indonesia specific standards, which are not based on international standards or regulations. Some industries where there is special concern regarding the SNI include fertilizers, automotive parts and electrical cables. There are also concerns related to the labeling requirements as imposed by Minister of Trade for non-food products.
EuroCham believes that it would be beneficial both for Indonesian and EU companies if Indonesia could accept EU standards, including testing in EU, before goods enter Indonesian customs area whenever practically possible. Furthermore new Indonesia specific standards could be approved only after socialization with the trading partner. Testing done in international standard laboratory or testing facility should be approved as such in Indonesia. Indonesian authorities should recognize all EU approved testing and certification institutions. With Indonesian testing facilities gradually reaching international standards through improved capacity building in Indonesia a reciprocal test approval system could be implemented. Laws, regulations and other rules affecting import-export should be published in a simplified manner within an agreed time frame.