Written by Belinda Laila Caesar on 3/10/2024
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.
A foreign legal entity contacted Putranto Alliance seeking guidance on the regulatory requirements for exporting fresh fruits and vegetables to Indonesia. The company’s Indonesian business partner said it needed an Indonesian National Standard (Standar Nasional Indonesia/SNI) for its products.
The foreign exporter aimed to expand its market by exporting fresh fruits and vegetables to Indonesia. They relied on an Indonesian partner, who claimed expertise in import and export operations, for compliance and logistical support.
Concerns arose regarding the partner’s legality after the foreign legal entity received a Processed Food Distribution License (Izin Edar Pangan Olahan) issued by the Indonesian Food and Drug Supervisory Agency (Badan Pengawas Obat dan Makanan/BPOM) from their Indonesian partner.
The Indonesian partner claimed that the SNI was mandatory for exporting fresh fruits and vegetables.
After receiving the BPOM certificate from the Indonesian partner, the foreign legal entity suspected the document had been tampered with, raising doubts about the partner’s credibility.
The foreign legal entity inquired:
The review confirmed that the requirements for exporting fresh fruits and vegetables to Indonesia do not include SNI certification, contrary to the Indonesian partner’s assertion. Instead, the necessary license for such exports is the Distribution License of Fresh Products of Plant Origin (Izin Edar PSAT). Additional verifications raised concerns about the partner’s legality and the authenticity of the BPOM certificate provided.
SNI certification is not required to export fresh fruits and vegetables to Indonesia. Instead, the required license for fresh fruits and vegetables export to Indonesia is the Distribution License of Fresh Products of Plant Origin (Izin Edar Pangan Segar Asal Tumbuhan/Izin Edar PSAT).
This conforms to regulations and the information gathered from:
The information was registered under a different company.
The findings were informed to the foreign legal entity, clarifying that their partner’s claims regarding the SNI were incorrect and that the BPOM certificate was likely fraudulent.
The partner company’s absence of registration in the official Ministry of Law & Human Rights of the Republic of Indonesia database indicated that it was not legally valid in Indonesia.
Based on the findings, it is recommended that the foreign legal entity take precautionary measures in future business dealings, including thorough due diligence to verify the legality and credibility of business partners.
The foreign legal entity was advised to conduct in-depth legal checking / due diligence when conducting business transactions.
The company was recommended to engage with established export and import firms with verified credentials to ensure compliance and avoid potential scams.
Putranto Alliance successfully prevented the foreign legal entity from potential financial losses and legal issues associated with engaging a fraudulent partner.
This case highlights the importance of verifying the legality of business partners and understanding regulatory requirements before entering foreign markets.
If you wish to learn more about this case, experience a similar case, or have any inquiries, we will contact you with the information you provide below.
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putranto@putranto-alliance.com
Jl. Denpasar Raya Blok C4/24
Kompleks Menteri, Kuningan
Jakarta Selatan, 12950, Indonesia
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