Indonesian Market Entry: A Guide to Regulatory Compliance

This month we will be taking you through the regulatory requirements for electronics and electrical equipment for the Indonesian market.

Two primary regimes govern this process:

· DJID (Directorate General of Digital Infrastructure): For radio equipment.

· SNI (Indonesian National Standard): For electrical safety of non-radio equipment.

Understanding these schemes is crucial for successful market entry and compliance with Indonesian regulations.

· Regulator: The DJID certification is issued by the Directorate General of Digital Infrastructure. Note that the SDPPI (Directorate General of Resources and Equipment of Post and Informatics) and PPI (Directorate of Post and Informatics) merged into the Directorate General of Digital Infrastructure after 5 November 2024, as per Presidential Regulation No. 174 of 2024.

· Certificate Holder: DJID certification is granted to a duly DJID registered local company -usually the local importer- and the usage of the certificate cannot be transferred to other companies.

· Process:

· Registration: Local importers must register with DJID using their registration number (NIB) and necessary documentation.

· Testing: Products must undergo testing in an accredited laboratory. Two options exist:

· Foreign Test Report Evaluation: Using test results from accredited foreign laboratories listed by DJID. This route often involves higher costs per approved device but eliminates the need to ship samples to Indonesia.

· In-Country Testing: R sending samples to Indonesian laboratories for testing. This route generally has lower costs per approved device but incurs additional expenses for shipping and may require longer lead times due to local testing procedures.

· Documentation Evaluation: DJID evaluates the submitted documentation.

· Certification Issuance: Upon successful completion of the process, DJID grants a certificate to the registered local importer.

· Labelling: Products must be labelled with a QR code, together with its alphanumeric identifications and the corresponding warning statement.

· Certificate Validity: The validity of the DJID certificate is usually 3 years. This certificate is not transferable.

· Regulator: SNI certification is regulated by the Indonesian National Standardization Agency (BSN) and enforced by Conformity Assessment Bodies such as LSPro and SINas.

· Certificate Holder:

· For domestic manufacturers, the certificate is issued to the manufacturer.

· For foreign manufacturers, the certificate is issued to both: - The foreign manufacturer as the certificate holder. - A local company (local brand representative, importer, or distributor) as the Local Representative of the product. It is mandatory for foreign manufacturers to count on a local company as Local Representative for SNI certificate issuance.

· Process:

· Application submission to the Conformity Assessment Body.

· Application scheme assessment: The scheme to be followed by each device is assessed based on their potential risks to public safety, health, or the environment. It will mainly be determined through the categorisation of the device through its HS Code.

· Certification Schemes: Several schemes exist, each with specific requirements. The most popular ones are:

· Scheme 1B: Focuses on the evaluation of product prototypes by means of type testing. It is usually applied to standardised products. Testing must be carried out by a laboratory designated by the Minister of Industry. First, a random selection of samples must be carried out at the manufacturer's premises in the country of origin, and then additional tests must be carried out for each shipment.

· Scheme 5: It assesses the manufacturing company's quality management system through an on-site audit of the factory and includes the random selection of samples from the production site for testing purposes, applying additional post-approval control with reviews and audits to ensure the continued effectiveness of the system.

· Factory Audit: If applicable per the Scheme to follow, an initial on-site factory audit shall be carried out.

· Testing: Products are tested against the relevant Indonesian standards. Testing is conducted by an accredited or BSN-recognized laboratory under LSPro supervision.

· Agency Approval: After rigorous auditing, testing and review processes -depending on the applicable scheme-, the products are granted with the SNI label and approval.

· Monitoring: Ongoing monitoring ensures continued adherence to standards through regular inspections and surveillance activities, including periodic audits -if necessary- and timely renewals to maintain validity.

· Labelling: Products must display the SNI conformity mark. It is crucial to adhere to the specific labelling requirements outlined by BSN for the relevant product category in each case.

· Certificate Validity: The validity of the SNI certificate varies depending on the scheme followed and the product specifications. While Scheme 1B certificates are valid per shipment, Scheme 5 certificates are valid for 2 to 4 years, depending on the product specifications.

Implications

A thorough understanding of both SDPPI and SNI schemes is crucial for successful market entry into Indonesia. Failure to comply with these regulations can result in:

· Product seizure: Non-compliant products may be seized by Indonesian authorities.

· Fines and penalties: Companies may face significant fines for violating regulations.

· Market access restrictions: Non-compliant products may be prohibited from entering the Indonesian market.

Navigating the Indonesian market requires careful consideration of both SDPPI and SNI certification requirements. By carefully planning and implementing a robust compliance strategy, companies can ensure smooth market entry and long-term success in Indonesia. In this regard and given the complexity of these regulatory processes and the high permutability rate of their associated regulations, it is of utmost importance to seek expert guidance tailored to the specific needs of your project to ensure full compliance with all applicable requirements and bring it to fruition. Eleos Compliance, together with our local Indonesian partners, are well placed to provide you with a seamless end-to-end service.