Q35.What is BPOM certification and how can I obtain it?

Food and Drug Administration certification is also commonly used as BPOM certification. The target items basically include pharmaceuticals, quasi-drugs, traditional medicines, health functional foods (health supplements), foods (general-price formula products) and cosmetics. While certification for cosmetics and food can usually take between 2 months and 1 year, it is reported that it can take up to 2 years for traditional medicines and health supplement products.
- Certification of cosmetics and general processed foods, which are within the scope of registration by general importers and distributors, can take between 2 and 6 months, while in the case of quasi-drugs, traditional medicines, and health supplement products, it is reported to take as long as two years or more. there is.

If you prepare in advance for registration and permission requirements for each field and meet the requirements, the time required for permission is on average 3 to 4 months for general processed foods, and 6 to 8 months for traditional medicines and health functional foods. It is necessary to understand and prepare thoroughly for the Indonesian Food and Drug Administration standards.
- General processed foods: http://e-reg.pom.go.id/ Cosmetics: https://notifkos.pom.go.id/ Traditional medicines, health functional foods, quasi-drugs:
You can apply through https://asrot.pom.go.id/asrot/.

Food (general processed foods)

• Procedure and time required for licensing: ① Registration of importer (ID granting), ② Registration of manufacturer, ③ Application for receipt of individual products, ④ Review of product stability, manufacturing and materials, ⑤ Review of product packaging design. It takes 3 to 4 months, or 6 to 12 months depending on the need for documentary security.
• Registration fee: For general processed foods, 300,000 or Rp. 500,000 depending on the category must be paid to the Food and Drug Administration as a review registration fee to proceed with the review. If the advertising functionality of the product is required, the advertising functionality evaluation is added, so the review fee is Rp. 3,000,000. Fees must be paid.

• Important note: Due to issues that cannot be directly inspected and confirmed, the overseas manufacturer's food safety and hygiene management matters must be submitted to continue the review and evaluation process by submitting a copy of the manufacturer's HACPP or ISO22000. In addition, the preparation of a product test report requires the manufacturer's own test report, but an additional test report from an organization recognized as an external test inspection agency must be submitted, and major mandatory microorganism and heavy metal tests for each food category must be included. . Because the standards may differ between countries, it is cost-effective and time-effective to request preparation from an Indonesian testing agency.

No	Name(item)	Max. Limit
1	Lemak total (fat)	69 g/ day
2	Energy/Kalori (calories/Kcal)	2150 Kcal/day
3	Protein	60 g / day
4	Karbohidrat total (total carbohydrate cargo)	325 g / day
5	Lemak Jenuh (saturated fat)	20 g / day
6	Natrium (sodium)	1500 mg / day
7	Cholesterol	<300 mg/ day

*Related regulations: Nutritional component test item regulations Food and Drug Administration (BPOM) Regulation No. 22 of 2019 (mandatory 2020.2.10.)

Traditional medicines and health functional foods (health supplements)

• Licensing procedure and time required: Similar to the registration process for general processed foods, but the approval target is more difficult to manage, manufacture technical stability, and review data on product functionality than general foods, and the requirements are more specialized. I ask for it. The review period can be within 6 months if the document requirements are fully met, but since there are many review requirements and evaluation items, it may take more than a year on average due to additional document corrections and required data.
• Registration fee: 5,000,000 or Rp.10,000,000 for health supplements, Rp.15,000,000 for traditional medicines, and Rp.15,000,000 for products with new ingredients.
• Important note: In particular, in the manufacturer's registration process, a notarized copy of the GMP must be submitted so that individual products can be reviewed for registration after the manufacturer's registration. In the case of GMP for manufacturing general health functional foods, an SMF (site master file) is additionally submitted and reviewed separately to determine compliance with WHO standards.

This may take a long time. However, if you are a manufacturer with PICs GMP (pharmaceutical), you can receive immediate approval and submit and review individual products.

In order to meet the Indonesian requirements for the Stability Report, that is, the stability evaluation report, a minimum of 6 months of data must be prepared and submitted as a report under acceleration conditions: Acceleration test at 40℃±2℃ / 75±5% RH, Long-term Test: 30 ± 2 ℃ / 75 ± 5% RH-related, consisting of active ingredients and auxiliaries or additives, the target of the active ingredient must be within the range of assay details and inspection results for each material. That means you need reports that remain reliable.

cosmetics

• Licensing procedure and time required: Similar to general processed food, ① registration of importer (ID granting), ② registration of manufacturer, ③ application for receipt of individual product,

④ Due to the composition of product stability, manufacturing, and material review, packaging design is inspected and evaluated during follow-up management after registration rather than prior evaluation.

• Registration application fee: The licensing period is comprised of within 1 month for the manufacturer's registration and 4 weeks for product review, but may be added depending on the Food and Drug Administration's work schedule.

It may take some time. Currently, the average new registration is completed within 3 months, and in the case of cosmetics, this is a basic document requirement, and only the product name and ingredients that meet the standards for use in cosmetics are reviewed based on priority and quick approval is granted. Meanwhile, management of cosmetics management documents according to the follow-up management system is very important for registration and maintenance of license.

• Cosmetics registration cost: It is divided by region into Asia, Europe, and the Americas. Korea is included in Asia and the registration fee is 1,500,000 with classification code NA.
• Key points to note: Although the approval review for cosmetics is relatively simplified compared to other products, the review period may be added depending on the need for registration of new ingredients, evaluation of the product name, and requests for verification data of its functionality. This point should also be kept in mind.

The microorganism and heavy metal test items and standards according to the type of cosmetics in the product's test report must be appropriate, and it is generally effective in terms of convenience and cost to request testing from an Indonesian testing agency.

As a follow-up management, the management of DIP (data information product)* documents for products that have received registration approval from the Food and Drug Administration will be audited.
<DIP composition documents>

This is a collection of product information documents. It is an abbreviation for Data information product. Specifications for all ingredients used in each product, technical documents such as the manufacturing process, copies of permits, packaging designs, labeling information, etc. must be organized sequentially and organized for each product.

<Reference: Main contents of the Minister of Food and Drug Safety BPOM No30/2017 regarding certification by the Food and Drug Administration>

1/3 must remain, and in the case of biological products such as vaccines, immune serum, antigens, hormones, blood-related products, and fermented products for health purposes, they must be imported at least 9 months in advance, and in the case of general processed foods, the maximum expiration date There must be 2/3 remaining.

- Applicable product group: HS code 04, 13, 16, 17, 18, 19, 20, 21, 22, 30,

33, 34, 38

Registration process and required documents

• Import of medicines and food is only possible for those who hold a distribution license from an agent.
• A pharmaceutical industry holding a distribution license can designate another pharmaceutical industry or wholesaler as an importer after obtaining quality approval for the product it wishes to distribute.
• SKI applicants must apply for import approval through the Ministry of Food and Drug Safety website (https://e-bpom.pom.go.id/) and Indonesia National Single Window (www.insw.go.id).
• Required documents for import approval (SKI) application

Applicants for import approval must obtain an original power of attorney from the president of the import company.

Original application form with the importer's seal

Importer's unique registration number (API). Taxpayer number (NPWP). Business registration certificate

(SIUP) copy

• Supporting documents for import approval (SKI) application

Official letter of distribution approval (NIE-Nomor Izin Edar) Ingredient analysis certificate (COA-Manufacturer's self-test certificate) Invoice

Proof of tax payment (NPWP)

• The ingredient analysis certificate must indicate the product name, product test result analysis method according to the provisions, product production date code (batch number), lot number production code, production date, expiration date, etc. In addition, the test inspection items must include mandatory test inspection items for each product category and the standards must be met.
• The following documents must be provided for vaccine product import approval: Distribution from the agency of origin where the vaccine is approved for each entry.

Batch or lot release certificate and summary batch or lot protocol issued by the manufacturer.

• The average time it takes to receive certification after providing documents is about 3 months.

Import Approval Matters

• Documents will be evaluated within a maximum of 3 working days after submission, and if additional documents are required, applicants may supplement the documents up to 3 times within 30 days. If an applicant exceeds the deadline, previous data is automatically deleted and the applicant must submit a new application.
• Import certificates may be issued through the applicant or another intermediary recognized by INSW (Indonesian National Single system Window).
• In particular, for drug control centers and food products throughout Indonesia that are not linked to the e-bpom system, applications for import approval are made in person at the Food and Drug Administration office rather than online.

Documentation Matters

• Documents for importing medicines and food must be properly maintained by the medicine and food distribution permit holder applying for import approval for at least the next three years.
• BPOM allows unplanned sampling of products that have been approved for import.

reimport

• When re-importing medicines and food into Indonesia, the import must be carried out as specified in the regulations.
• When re-importing the relevant product, an export certificate must be enclosed that specifies whether the medicine and food raw materials are from Indonesia and the reason for re-importation, and the export certificate must be issued by the Food and Drug Administration or a related agency.

Post-customs clearance management system (newly established on February 1, 2018)

• The Food and Drug Administration (BPOM) certification classified SKI into two types, SKI Border and SKI Non-Border, through BPOM No 30 year 2017, which is different from the one that was integrated into one law announced last year.
• In addition, BPOM No 4 year 2017 listed items subject to import, but BPOM No 30 year 2017 listed items subject to import restrictions.

Q36.What is SNI certification and how can I obtain it?

SNI stands for Standar Nasional Indonesia, which is an abbreviation for Indonesian National Standard Certification regarding product specifications and production processes. It guarantees the quality of Indonesian products, improves international competitiveness, and prevents the quality of products distributed in the domestic market from deteriorating. This is a device designed for this purpose. This national standard was designed based on the international quality assurance ISO 9000. This certification is similar to other recognized international standardization certifications such as ISO, but the Indonesian government designates products that must compulsorily receive SNI, and for this, even if you have ISO certification, you must newly obtain SNI certification. Although products are not subject to SNI mandatory certification and therefore do not require certification, they are voluntarily certified to increase product reliability.

SNI classifications include Type 1a, Type 1b, Type 2, Type 3, Type 4, Type 5, Type 6, and Type N. As of April 2, 2019, on the BSN website, there are 4,540 items listed on the SNI certification issuance list. Most of them are Type 1b or Type 5. Toys, infant and toddler products fall under Type 1b, toilets, audiovisual electronics, and edibles.

Salt, cacao powder, ramen, bottled water, industrial equipment such as tires, fans, pumps, pipes, etc. fall into Type 5.

The conformity assessment-related activities that must be followed for each type of certification are as follows, and the costs and time required for each type are different.

Applications for SNI certification can be made by importers located in Indonesia or manufacturers located in Indonesia. If an overseas company wishes to apply, the application can be made through the representative office (agency, branch, commission) of the Indonesian importer or manufacturer.

Specifics and precautions in SNI certification include 1 item if the importer applies for and receives certification.

It is important to note that only one brand is possible for a manufacturer, and that in the case of an application by the manufacturer's agent (representative office), certification for multiple brands is possible for one manufacturer. In this case, imports can be imported and distributed by the rights importer for each brand. do.

SNI certification preparation documents, time required, issuance cost, and issuance procedures are generally as follows.

<SNI authentication basic information>

Issuance Procedure

• Become SNI certified through the list of SNI certification standards listed on the BSN website.

You need to check whether the item you want is available.

▶The list can be found on this website : http://sispk.bsn.go.id/SNI/ DaftarList The latest list of products subject to SNI mandatory application as of May 2022 is https://bsn.go.id/main You can check it at /berita/detail/11826/regulasi-teknis-sni-yang-diwajibkan.

• Check with a testing and certification body (LSPro) that can issue certification for your item. *The LSPro must be an organization accredited by the Indonesian National Accreditation Council (KAN).

▶The type, location, and items eligible for certification of LSPro approved by KAN can be checked on the website. http://pustan.kemenperin. go.id/List_LSPro

• Certification applicants such as importers require a notarized copy of the company's articles of incorporation, business license (SIUP), taxpayer identification number (NPWP), business identification number (NIB), and brand registration certificate from the Korean Intellectual Property Office (trademark application form can be used) along with the application. You must submit documents.
• LSPro reviews the suitability and completeness of application documents and the company.
• Evaluation of associated operating systems, including evaluation of manufacturing processes and testing of product samples.
• Final review of documents collected in the fourth and fifth processes, sample inspection, and manufacturing process evaluation results
• SNI certification issuance and follow-up management*

*In the case of follow-up management, it corresponds to a separate test inspection conducted even after certification issuance. Type 1 is per batch at each shipment, type 2 is every year, type 3 is every 6 months, and type 4 is 1 year. 1 for 5

Every year, N type is searched for no fixed period.

preparation documents

• Administrative documents required for initial application include a copy of identification card (KTP), taxpayer identification number (NPWP), copy of business license (SIUP), company articles of incorporation (Akta Pendirian), business registration number (NIB), and brand registration certificate (Bukti Pendaftaran Merk). , quality guide (Paduan Mutu), and manufacturing and distribution process flow (alurproses produksi dan distribusi). You must submit other technical documents related to testing and inspection, and you can contact the testing and certification body (LS Pro) for detailed documents.

necessary period

• Assuming that all documents are prepared, the time required is 41 working days, which is the administrative processing period excluding the test inspection period. If all processes are included, it may take anywhere from 6 months to up to a year.

Issuance cost

• The cost of obtaining SNI certification is recognized as very high not only among Indonesian companies but also among foreign companies.

☞An Indonesian businessman who owns a TV assembly plant in Central Java said that the total cost of testing and inspection for three items to obtain SNI related to electronic products is 13.5 million rupiah, and the total cost is 28.2 million rupiah. I mentioned that I heard it.

The above case is a case in which the company in question conducted the certification process directly, and the cost of certification is for domestically produced products. It is estimated that SNI certification is 3 to 4 times more expensive for products produced in factories located overseas. .

☞The cost of SNI certification varies depending on the product as the inspection and monitoring activities are different, and recent industry opinion is that if an overseas company uses a certification agency, it can cost as little as $10,000 to as much as $30,000. However, the cost may vary from case to case, so it is only used for rough cost estimation, and the exact cost is based on the estimate from the testing and certification agency for the product you wish to apply for.

<SNI cost configuration example>

Q37.What is Halal certification and how can I obtain it?

Sinhalal Certification Overview

The Sinhalal certification system went into effect on October 17, 2019. The new Halal certification online system is Halal.go.id, which is currently undergoing an upgrade process and requires more time for site system maintenance and evaluation verification. Currently, the mandatory halal certification has been postponed for an additional 5 years due to the Indonesian government and the Halal Guarantee Agency's lack of preparation for the system and implementation of detailed enforcement rules. However, a guidance period for each industry has been set for up to 5 years. In the case of general processed foods, applications may be delayed due to the end of the guidance period from October 17, 2024, so it is recommended to obtain certification well in advance.

After checking with BPJPH, the Halal Guarantee Agency, and LPPOM MUI, the Halal Review Agency, it is currently possible to submit applications via email as the online system is being prepared.

It takes 2-3 weeks to respond to submissions, and only basic information regarding registration is provided. In the future, applications will be submitted to the BPJPH Halal Guarantee Office and domestic manufacturers will be able to select LPH (Halal Review Agency) from the list. With the amendment to the Halal Product Guarantee Act No. 39 of 2021, three overseas Halal Review Agencies (LPH) were designated: LPPOM MUI, Sucofindo Indonesia, and Surveyor Indonesia.

As for the standard work guidelines for halal review procedures, MUI-affiliated organizations follow the standards of LPPOMMUI, which is expected to be advantageous for overseas manufacturers in selecting review organizations.

As of April 20, 2020, LPPOM has changed the name of the Halal certification from Certifica tion Halal to Halal Decree. This is believed to be a situation that has been adjusted through consultation as the issuance of cer tification has been transferred to BPJPH. In order to receive documents from LPPOM, the application for halal certification must undergo BPJPH's application process, receive a confirmation of acceptance, and submit it to the overseas certification body (LPH) for review.

Sinhalal certification validity period and process

Halal certificates have a validity period of 4 years according to the Halal Guarantee Act.
<Halal certification approval process>

Source: BPJPH. CEO Junhwan Lim

<Main outline of the Indonesian Halal Guarantee Act Amendment Act and Enforcement Decree>

Beyond fields such as health supplements, pharmaceuticals, quasi-drugs, distribution, slaughter, and finance. Applicable to all fields necessary for daily life activities. - Mandatory period: After the guidance period ends, a Shinhalal certificate must be obtained. Halal certification for food and beverages will be mandatory after October 17, 2024, and for medicines and cosmetics, etc. will be mandatory after October 17, 2026* * However, in the case of pharmaceuticals, it is applied differently depending on the type of drug (the starting year of mandatory application varies from 2026 to 2034) * Not only food, cosmetics, and medicines, but also medical devices (differential application by grade, mandatory application start year varies from 2026 to 2034), clothing and headgear (from 2026), household goods (from 2026), etc. are also halal. Gender has been proven * The new halal certification process can be carried out through BPJPH even before the guidance period. ▶Decree of the Minister of Religious Affairs of Indonesia No. 26 of 2019 Articles 32-33 specify the grace period for each item in detail.
	product type	guidance period
	Food (Food and Beverage)	2019.10.17.~2024.10.17
	Traditional medicine, health supplements	2021.10.17.~2026.10.17
	Over-the-counter (OTC)	2021.10.17.~2029.10.17
	Medicines excluding psychotropic drugs	2021.10.17.~2034.10.17
	Cosmetics, chemicals, genetic engineering products	2021.10.17.~2026.10.17
	Clothing, headgear, and accessories	2021.10.17.~2026.10.17
	Household items, Islamic religious ritual tools, Stationery, office supplies	2021.10.17.~2026.10.17
	Medical devices (Grade A)	2021.10.17.~2026.10.17
	Medical device (Class B)	2021.10.17.~2029.10.17
	Medical device (Class C)	2021.10.17.~2034.10.17
	Other non-halal medicines, biological products, Medical devices, etc.	not defined
- Products containing Haram ingredients are excluded from Halal certification, and products that do not contain Haram ingredients must obtain Halal certification. - If the MUI Halal certification validity period remains, it can be used until the end of the validity period, and you are required to report and register the valid certification to the Halal Certification Agency (BPJPH) 3 months before the expiration date. - Apply directly for Halal certification through the Halal Certification website of the Halal Agency (BPJPH) - Application site: https://ptsp.halal.go.id/

• Meanwhile, as there is no overseas Halal certification agency approved by the Halal Guarantee Agency yet, MUI FATWA's evaluation and consent must be obtained for the final agency selection review.

Strengthening supervision of non-halal labeling

• In accordance with Indonesian Food and Drug Administration Directorate No. 31 of 2018 (BPOM) on processed food labeling, all products distributed in Indonesia are required to comply with labeling related to Haram ingredients as shown below.
• Since the introduction of the new halal certification system, labeling management and supervision will become more thorough, and it is believed that these labeling laws tend to conflict somewhat with Korea's Ministry of Food and Drug Safety regulations.
• In Korea, allergenic ingredients are required to be labeled in accordance with the Ministry of Food and Drug Safety [Labeling Standards for Food, etc. (Ministry of Food and Drug Safety Notification No. 2016-149)]. For example, even if a product does not use pork as a raw material, if it is produced in a manufacturing facility (including raw material warehouse) that handles pork, a warning message must be inserted due to the risk of allergic reactions.
• Therefore, even if there are no pork ingredients at all, products that already have such a statement attached according to Korean laws will undergo a more stringent screening process when entering Indonesia.

Source of data: PT GNF CEO Lim Jun-hwan’s contribution

The Indonesian Halal Agency under the Ministry of Religious Affairs of Indonesia announced a new halal certification logo.

• Source: (BPJPH Nomor 40 tahun 2022) It will take effect from March 1, 2022, and if you receive a new halal certification, you must use the recently announced halal certification logo.
• The existing Halal logo issued by MUI is valid until 2026 (Based on: Government Regulation No. 39 on Implementation of Halal Product Warranty in 2021)

Q38. What is the proportion of domestic parts used (TKDN)?

TKDN concept

The local content requirement (Tingkat Komponen Dalam Negeri (TKDN)) system is one of the technological trade barriers to protect Indonesia's domestic industry, and was first introduced in 2009. The Indonesian government designated it in 2014 when procuring government projects and government or public agency goods and services.

We have announced regulations mandating local content requirement (Tingkat Komponen Dalam Negeri (TKDN)) certification for only items. Afterwards, a government regulation was announced to strengthen the proportion of domestically produced content, signed by President Joko Widodo on July 13, 2018 and went into effect on July 18. (Decree number: PP Nomor 29 Tahun 2018) This regulation stipulates that manufacturers must This includes requiring product labels to indicate domestic content. The main contents of TKDN (increasing the proportion of domestic content) are contained in the Ordinance of the Minister of Trade, Industry and Energy (PERATURANMENTERI PERINDUSTRIAN REPUBLIK INDONESIA NOMOR).

16/M-IND/PER/2/2011).

Basically, TKDN's domestic content includes the proportion of domestically produced raw materials or parts used in goods, the proportion of domestic services, the proportion of Indonesian employees in the workplace, the proportion of domestically produced production machines, and the ratio of invested domestic corporate capital.

TKDN 산정 방식 : REGULATION OF THE MINISTER OF INDUSTRY OF THE REPUBLIC OF INDONESIA NUMBER 16/M-IND/PER/2/2011 OF 2011에 명시돼

there is.

For products, raw materials, input labor, and indirect production costs are included in the calculation. For services, labor, tools and facilities, and general services are included in the calculation.

TKDN calculation formula

classification	KDN	KLN	Total	% TKDN
Raw materials	(1A)	(1B)	(1C)	(1D)
labor	(2A)	(2B)	(2C)	(2D)
Manufacturing indirect costs	(3A)	(3B)	(3C)	(3D)
production cost	(4A)	(4B)	(4C)	(4D)

Domestic parts cost (Kandungan Dalam Negeri (KDN))

Direct raw material costs, direct labor costs, and other indirect costs incurred domestically

Foreign Component Cost (Foreign Component Cost or Kandungan Luar Negeri (KLN)) There are two methods below for calculating direct raw material cost, direct labor cost, and other indirect costs incurred overseas.
TKDN final origin standard

• Raw materials: based on country of origin
• Tools, facilities, etc. used in business: based on ownership and country of origin
• For the workforce, based on nationality

When an Indonesian company contracts with a foreign company to supply TKDN, the TKDN ratio is based on relevant laws and regulations for each field. We have relevant laws and regulations for each project. Pursuant to Ministerial Decree No 54/M-IND/PER/3/2012 of the Ministry of Trade, Industry and Energy, local content regulations are specified for power infrastructure projects carried out on the basis of government, local government, aid funds and foreign investment funds.

TKDN applies to the following infrastructure projects: steam power plants, geothermal power plants, hydro power plants, natural gas power plants, integrated cycle (natural gas and gas steam) power plants, solar power plants, transmission networks, sub-power plants, and distribution network projects. etc.

power plant	power generation capacity	Proportion of domestic content
Hydro-non-storage pump	15MW or less	Parts: 64.20%; Service: 86.06%; Combined: 70.76%
	>15 MW Below 50MW	Parts: 49.84%; Service: 55.54%; Combined: 51.60%
	>50 MW Below 150MW	Parts: 48.11%; Service: 51.10%; Combined: 49%
	>150 MW	Parts: 47.82%; Service: 46.98%; Combined: 47.60%
Geothermal	5MW or less	Parts: 31.30%; Service: 89.18%; Combined: 42%
	>5MW 10MW or less	Parts: 21%; Service: 82.30%; Combined: 40.45%
	>10 MW Below 60MW	Parts: 15.70%; Service: 74.10%; Combined: 33.24%
	>60 MW 110MW or less	Parts: 16.30%; Service: 60.10%; Combined: 29.21%
	>110MW	Parts: 16%; Service: 58.40%; Combined: 48.96%
Solar Home System (off grid, stand alone)	per unit	Parts: 39.87%; Service: 100%; Combined: 45.90%
Communal SolarPower System (mini grid)	per unit	Parts: 34.09%; Service: 100%; Combined: 40.68%
On-Grid Solar Power System	per unit	Parts: 37.47%; Service: 100%; Combined: 43.72%

Pursuant to Ministerial Decree No 65/M-IND/PER/7/2016 of the Ministry of Trade, Industry and Energy, there are TKDN regulations applicable to information and communication devices such as mobile phones, portable devices, and tablet PCs. At this time, the main factors that go into calculating TKDN are manufacturing, development and application. There are calculation formulas for each element, and it is calculated as 70% manufacturing, 20% development, and 10% application.

Note (government-designated responsible agency)

For inquiries regarding the proportion of domestically produced content and the registration process for the items you are handling, please seek advice from the TKDN agency designated by the Indonesian government.

PT. Indonesian Surveyor	PT. Sucofindo (Persero)
주소 : Industrial and Facilities Business Unit, Jl. Gen. Gatot Subroto Kav. 56, 7th Floor, South Jakarta Phone number:+62-21-526-5526 (ext 863) Contact name: Nasrul or Erica	주소 : Government Strategy Business Unit, Engineering Verification Section Jl. Raya Pasar Minggu Km. 34, Lantai 13 Jakarta Selatan Tel:+62-21-798-3666 (ext 2424) Contact Name: Sugeng Priyanto or Syamsuri

Q39. How do I check if the items I want to export to Indonesia are subject to required certification? And if the 8-digit HS code is different, how is it classified?

If you want to check whether the item you wish to export to Indonesia is subject to mandatory certification, you can check through the Indonesian Customs Service portal site (www.insw.go.id). Through this site, you can also check the required certification types and taxes for export items.

The first 6 digits of the HS code are common throughout the world, but the last 6 digits differ depending on the country. When you search the 6-digit HS code on the above site, you can check the sub-items of that HS code.

However, if confirmation is not possible or is unclear through the above portal site, you can request confirmation from the buyer or request confirmation through KOTRA's overseas market research service.

Q40. I would like to know about the operation trends of the prior import approval system. The Pre-Import Approval System (PI, Persetujuan Impor) is one of the representative non-tariff barriers implemented by the Indonesian government and is based on quality standards such as SNI, HALAL, and BPOM.

Unlike other regulations that halve the total amount of imports, it is a regulation that manages and supervises the total amount of imports and serves as a practical import quota.

Since Indonesia introduced the pre-import approval system for the first time in December 2016 (No.82/M-DAG/PER/12/2016), it has been continuously reducing the amount of pre-import approval with the aim of fostering domestic industries, so our companies The difficulties are worsening.

In the past, the pre-import approval system was related to all products receiving import quota approval from the Ministry of Trade.

After making an individual application to the relevant ministry, I received a written opinion and proceeded. In order to improve the inefficiencies arising from this, the Indonesian government has consolidated the existing 109 import approval laws into one law (No. 20 Tahun 2021), which has been in effect since November 15. .

After the enforcement of this law, it was integrated into INSW (Indonesia National Single Window), an Indonesian online investment platform, and it was changed to register and apply as a corporation with INSW. In other words, it can be said that INSW serves as a window dedicated to import approval-related work.

However, during this process, the flow of work coordination between related ministries, which often occurs when applying a new system in Indonesia, is not smooth, and the screening and approval of application documents of companies applying for import approval are delayed, resulting in many disruptions in business. It has occurred. Moreover, as the process was conducted in a non-face-to-face online manner due to the coronavirus, it was difficult to request prompt approval.

Moreover, with regard to import approval, especially automobile and parts companies with many steel-based materials and parts, an urgent solution is needed as they are experiencing great difficulties in procuring raw and subsidiary materials as significantly smaller quantities have been approved compared to the quantity applied.

Major items subject to import approval include agricultural and livestock products, forest products, marine products, tires, plastic raw materials, lubricants, hazardous material raw materials, hand tools, cement, fertilizers, ceramics, plate glass, organic compounds, island dairy products, steel and alloy steel products, and used goods (machinery equipment). A total of 4,260 items, including clothing, mobile phones, and natural jewelry, are managed as items subject to import approval.

In particular, the volume of pre-import approvals for products such as steel (360 items), alloy steel (64 items), and derivative products (55 items), which are Korea's major export products to Indonesia, is continuously decreasing.

Among steel and alloy steel, products subject to pre-import approval exceptions include items imported via EMS, etc. (USD 1,500 or less on FOB basis), items listed on the mast list, and products for export by companies certified for import convenience (KITE, Kemudahan ImporTujuan Ekspor) for export purposes. These include raw material items, items weighing less than 5 tons (up to 5 times per year), samples, etc.

530 items of textiles and textile products (including 75 batik and batik pattern textile products) are subject to pre-import approval. As with steel products, exceptions apply for some products. Excepted products include sample products, products imported from an authorized economic operator (AEO), products imported from a top-rated company (MitraUtama), and items imported from KITE-certified companies.

One thing to note about the pre-import approval system is that the import approval period is limited to 1 year for manufacturers and 6 months for trading companies. However, if the approved quantity is not used up within the approval period and there is a remaining quantity, it is extended once. This is possible and the maximum extension period is 30 days. In addition, the import activity details of items approved for import must be reported before the 15th of each month.

Preparation for application for import approval must be made at least 3 to 4 months in advance. This is because the Ministry of Trade often has procedures that require an opinion from a related agency to be attached to the requirements when applying for import approval, so the time required to proceed with the procedure must be taken into consideration. because of.

• Submit the application documents for the recommendation letter specified above to the Indonesian Ministry of Industry/Agriculture.
• After the Ministry of Trade, Industry and Energy/Ministry of Agriculture reviews the documents, register the manufacturing plant and issue a letter of recommendation.
• Submit an import recommendation to the Ministry of Trade and receive import approval.

Considering the current situation, companies wishing to apply for import approval should carefully review the equipment list, products produced, and product production volume reported to the Investment Office when making their first investment in Indonesia, carefully calculate the corresponding material requirements, and have the person in charge of import approval review. At this point, it appears that the best way is to create and submit data that sufficiently satisfies the amount of raw materials requested by the importer.