Services » Business Identification Number Service

Indonesian National Standard (SNI)

Written by Dea Amanta Azaria on 08/08/2024
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.

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Introduction

The Indonesian National Standard (SNI) mark is a certification that indicates a product or service has met national quality standards and assurance. This article will discuss whether all products are required to be SNI, whether imported goods are required to have an SNI mark, whether there are sanctions if they do not register SNI, and what is the procedure for applying for SNI.

Definition

SNI is a standard set by the National Standardization Agency/Badan Standardisasi Nasional (BSN) and applies within the territory of Indonesia. BSN adopts international standards, such as ISO, either identically by translating the entire contents of the ISO document into SNI or by modifying them to suit Indonesian conditions and needs. Therefore, SNI is equivalent to international standards. Based on Article 20 paragraph (1) and paragraph (2) of PP 34/2018, SNI can be applied by business actors, ministries, non-ministerial government agencies, and regional governments according to needs and can be applied to:

Goods traded or distributed
Services provided
Executed processes or systems
Personnel involved in certain activities

The application of SNI can be divided into two types: voluntary and mandatory (Article 21 and Article 25 of PP 34/2018). Voluntary application is carried out according to the needs of business actors, while mandatory application is necessary to comply with the provisions outlined in ministerial regulations or directives from heads of non-ministerial government agencies.

The Importance of Acquiring SNI Certification

The existence of SNI provides several benefits for business actors, including increased company credibility, international quality assurance, and enhanced company branding. The Indonesian government also aims to achieve several goals through the enactment of SNI, as stated in Law No. 20 of 2014 concerning Standardization and Conformity Assessment (UU 20/2014). These goals include:

Improving Quality Assurance and Competitiveness:
- Enhancing production efficiency
- Boosting national competitiveness
- Ensuring fair and transparent business competition
- Providing business certainty and capabilities for business actors
- Fostering technological innovation capabilities
Consumer and Community Protection:
- Protecting consumers, business actors, workers, and other communities
- Ensuring safety, security, health, and environmental preservation
Trade Transaction Efficiency:
- Increasing the certainty, smoothness, and efficiency of trade transactions for goods and/or services domestically and internationally

Standardization and conformity assessment are required in various sectors, including trade, industry, agriculture, science and technology, and the environment. These standards apply to goods, services, systems, processes, or personnel.

The Best Time to Apply for SNI Certification

The best time to apply for SNI certification is during the initial stages of product development or before launching a new product or service in the Indonesian market. This ensures that the product or service complies with national standards from the outset, avoiding potential legal issues and market entry delays. Additionally, applying for SNI certification early can help in:

Market Readiness:
- Ensuring that the product or service meets all regulatory requirements before it reaches consumers.
- Facilitating smoother market entry and acceptance.
Risk Management:
- Identifying and mitigating any compliance risks early in the product development process.
- Avoiding costly recalls or modifications after the product has been launched.
Competitive Advantage:
- Gaining a competitive edge by demonstrating compliance with national standards.
- Building consumer trust and confidence in the product or service.
Operational Efficiency:
- Streamlining the production process by adhering to standardized requirements.
- Reducing the likelihood of production errors and quality issues.

Benefits of Obtaining an SNI Certificate

Obtaining an SNI certificate offers numerous benefits for business actors, consumers, and the broader community. These benefits include:

Increased Credibility:
- Enhances the reputation of the company by demonstrating compliance with national and international standards.
- Builds trust with consumers, partners, and stakeholders.
International Quality Assurance:
- Ensures that products and services meet high-quality standards, facilitating international trade and market expansion.
- Aligns with global standards, making it easier to enter foreign markets.
Enhanced Branding:
- Differentiates products and services in a competitive market.
- Provides a marketing advantage by showcasing adherence to recognized standards.
Consumer Protection:
- Guarantees the safety, security, and health of consumers by ensuring that products and services meet stringent quality criteria.
- Reduces the risk of harm from substandard products.
Regulatory Compliance:
- Ensures compliance with Indonesian laws and regulations, avoiding legal issues and penalties.
- Facilitates smoother interactions with regulatory authorities
Market Access:
- Provides access to government tenders and contracts that require SNI certification.
- Enhances the ability to compete in both domestic and international markets.

How to Apply for SNI Certification

To obtain an SNI Certificate in Indonesia, business actors must follow a structured process involving several key steps:

Submission of Application:
- Business actors submit an application for certification to the Conformity Assessment Agency (LPK).
- The application must include all necessary documentation and information about the product, service, system, process, or personnel.
Conformity Assessment:
- The LPK conducts a conformity assessment to ensure that the goods, services, systems, processes, or personnel meet the Reference Requirements.
- This assessment involves testing, inspection, and/or certification activities.
- If all terms and conditions are met, the LPK provides evidence of conformity in the form of a certificate of fulfillment of the Reference Requirements.
Approval for Use of SNI Mark:
- Business actors submit an application for approval to use the SNI Mark to BSN or the relevant ministries and/or non-ministerial government agencies.
- The application must include:
  - An application letter
  - A photocopy of the certificate of compliance with the Reference Requirements
  - Photos of the physical form of the goods or process results
  - Information on marketing area plans for goods, services, or process results
  - A domicile/SlUP certificate
  - A letter of statement of willingness to comply with the obligation to use the SNI mark
Affixing the SNI Mark:
- The SNI Mark is a certification mark determined by BSN to state that the SNI requirements have been fulfilled.
- Business actors must affix the SNI Mark on goods and/or packaging or labels, and on identification boards, letterheads, and/or other media if the SNI Mark is for services, systems, processes, and/or personnel.
- The procedure for affixing the SNI Mark is carried out according to the Conformity Assessment Scheme prepared by BSN or the relevant ministry and/or non-ministerial government agency.
Compliance and Monitoring:
- Business actors must ensure ongoing compliance with SNI requirements.
- Regular monitoring and audits may be conducted to verify continued adherence to standards.

How We Can Help

Putranto Alliance is committed to assisting clients with all business matters and needs, ensuring that their main business objectives are achieved in compliance with prevailing laws in Indonesia. Our services include:

Product Analysis:
- We analyze whether your product is required to have SNI certification.
- We provide detailed guidance on the specific standards applicable to your product or service.
Regulatory Compliance:
- We help you comply with the provisions in ministerial regulations and/or heads of non-ministerial government agencies.
- We ensure that your business meets all legal requirements for SNI certification.
Coordination with Agencies:
- We coordinate with related agencies on your behalf.
- We facilitate communication and documentation processes with BSN and other relevant authorities.
Document Preparation:
- We assist in preparing and completing various documents needed to obtain SNI certification.
- We ensure that all documentation is accurate and meets regulatory standards.
Regulatory Compliance:
- Our team consists of professionals with years of experience in handling business needs.
- We provide expert guidance to help you navigate the SNI certification process efficiently.

If you have any further questions or need assistance, don't hesitate to contact us.

FAQs

Are there any sanctions for business actors who do not include SNI marks on products, services, or goods that are obligatory for SNI?

Yes, based on Law No. 20 of 2014, the Government of Indonesia imposes strict sanctions for non-compliance with mandatory SNI regulations. These sanctions include administrative penalties, imprisonment, and fines. Chapter X of Law No. 20 of 2014, specifically Articles 62 to 73, outlines the criminal provisions and sanctions that can be imposed.

Is it possible to have cost reductions to obtain SNI certificates for business actors in Indonesia?

Yes, based on BSN Regulation Number 16 of 2020 concerning Criteria for Certain Parties and Procedures for Imposing Zero Rupiah Tariffs on Non-Tax State Revenues for Standardization Information Services, certain parties may be eligible for a zero-rupiah tariff for SNI documents. These parties include:

Central government

Regional government

State institutions

Educational institutions

Research institutes

Other institutions that cooperate with BSN

The zero-rupiah tariff is only given once for one SNI number per applicant.

Does SNI also apply to imported products?

Imported goods must also comply with SNI standards. All trade goods must bear the SNI logo and use Indonesian language labels and instructions to protect Indonesian consumers.

Even if the imported goods already have ISO certification, they must still meet SNI requirements to ensure consumer protection and maintain Indonesia’s competitiveness.

What is the difference between voluntary and mandatory SNI application?

Voluntary SNI application is based on the needs of business actors and is not legally required.

Mandatory SNI application is enforced through ministerial regulations or heads of non-ministerial government agencies and must be adhered to by business actors.

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