Home Blog SNI License and Product Registration in Indonesia Business Licenses | Business Setup | Indonesia | Product Registration SNI License and Product Registration in Indonesia InCorp Editorial Team 19 August 2024 8 minutes reading time Table of Contents What is SNI? Why Do You Need SNI Certificate in Indonesia? The Benefits of SNI Certification in Indonesia List of Products that Require SNI Certificate in Indonesia How to Get SNI Certificate in Indonesia Obtain Your SNI Product Certification with InCorp Indonesia For manufacturers and traders who would like to import products to Indonesia, the good news is, most of the products can be imported to the country by just obtaining a general import license. However, for certain products, you will need to have supplementary licenses such as an SNI Certificate Indonesia. As a matter of fact, as a foreign company or an entrepreneur who would like to expand business to Indonesia, you should always be ready to have SNI certification. With SNI certification, you will ensure a smoother and more productive business process now and in the future. Furthermore, this certification will open up more business and market opportunities for your entrepreneurial venture. This article discusses everything you need to know about SNI license and product certification in Indonesia. What is SNI? SNI stands for Standar Nasional Indonesia (Indonesian National Standard). It is a standard drafted and determined by the National Standardization Agency of Indonesia (BSN) and Technical Committee on goods, services, system, process, and personnel in the territory of Indonesia. The SNI certification process is conducted by the Indonesian Product Certification Body (LSP Indonesia) of Balai Besar and Technical Goods. This body provides SNI product registration certification services to local or foreign companies that comply with the SNI standards for product and quality management. SNI is the only standard that is applied to products and services nationally in Indonesia and is used to determine the conformity of the standard quality of a product. SNI is obtained via a third–party product certification system with specified requirements. These requirements include product sample testing, quality system assessment and surveillance during the entire process. Moreover, SNI is one of the several non-tariff import restrictions that are enforced by the Indonesian government. When you see the SNI marking on a product in Indonesia, it tells you that the product meets the requirements of SNI standard. It also means that the product has been proven safe for consumers; and is allowed to be sold anywhere across Indonesia. Why Do You Need SNI Certificate in Indonesia? According to the Ministry of Industry, it is compulsory for certain products to have SNI license before you are able to import, distribute and sell these products in the Republic of Indonesia. The purpose for businesses to acquire SNI license, as previously mentioned, is to provide good quality product and protect the consumers in terms of safety under the national standards. There are two types of SNI licenses: required SNI license and optional SNI license. In an effort for SNI certification to be accepted and widely adopted by businesses in Indonesia, the Indonesian government formulated SNI requirements with fulfillment of the World Trade Organization (WTO) Code of Good Practice. The WTO Code of Good Practice consists of the following: 1. Transparency A transparent system allowing all relevant stakeholders to keep pace with the progress of SNI certification from start to finish (from import to audit to final license issuance). Information can also be easily obtained from the authorities in charge. 2. Openness SNI certification is open to all interested stakeholders to participate and see the entire development of SNI. All interested parties, including foreign stakeholders, should have the opportunity to participate in the standard-setting process through an inclusive participation. This will prevent discrimination and ensures that a wide range of views is considered. 3. Coherence SNI certification is coherent with international standards and is updated and revised with the latest requirements from time to time. The coherence enables the continuous development of the market in Indonesia so that it is not isolated from global market development. In addition, this code of practice facilitates the international trade of Indonesia with all countries globally. 4. Consensus and Impartiality SNI certification is formulated based on impartiality and consensus. All stakeholders will be treated fairly without bias and prejudice. 5. Effectiveness and Relevance This code of practice facilitates local and international trades by paying attention to market needs and demands. It will not be in conflict with relevant applicable regulations and laws. 6. Dimension of Development The dimension of development focuses on both national and public interests in Indonesia. This is to increase the competitive edge of the overall economy in Indonesia as well as the global economy. The Benefits of SNI Certification in Indonesia As SNI certification in Indonesia encompasses a wide range of products, processes, and services, it has become a crucial import requirements in Indonesia. With the increasing demand from the consumer market, SNI certification is essential to ensure high-quality and safe products. SNI certification not only serves as an important requirement for your business but also acts as a key to entering a more competitive market. Gain Consumer Trust: Products labeled with the SNI logo signal that the Indonesian government has verified them as safe and reliable through a series of testing and verification processes. This increases consumer trust in the products and services they purchase. Market Expansion: SNI certification has become a crucial factor for stores and government entities when deciding to sell or buy products, as it verifies product safety. This certification enables your business to reach a wider market. Improved Product Quality and Consistency: SNI certification helps identify areas for improvement, leading to better quality and more consistent products. List of Products that Require SNI Certificate in Indonesia In general, products that need SNI license include the following categories: Food and beverages Bicycles Children’s toys Air conditioners and fans Helmets and tires Instant coffee and cacao powder Mineral water Washing machines and refrigerators Iron and steel products Power cable and lamps Lights and lighting materials LPG pipe or tube Construction materials Palm oil, sugar, cookies, and biscuits Fertilizers Lighters, batteries, and mirrors Water pumps and toilets Glass materials used for building, ceramic, and cement However, not all products that belong to the aforementioned categories are required to obtain SNI License. It is highly recommended that you contact InCorp if you are unsure whether your products fall under these categories of SNI certification. We have a complete list of products that require SNI certification. How to Get SNI Certificate in Indonesia In brief, the procedure of SNI License application is as follows: Submit application and required documents to SNI institution SNI institution will verify the documents Your company and factory in origin country will go through an audit process and sample taking A sample will be tested SNI certificate will be issued To engage with the SNI compliance process, these are several key documents needed for SNI certificate requirements in Indonesia: Company Notarial Deed Business License (SIUP) Tax Identification Number (NPWP) Trademark Registration Letter from the Directorate General of Intellectual Property / Trademark Certificate Trademark Assignment or Cooperation Agreement between trademark owner and user (only if the trademark is not self-owned) Organizational Chart approved by management Management representative appointment letter and complete biodata SNI Certification Application Letter Importer Identification Number (API) (if not a producer) Quality Management System Certificate or other certificates (if available) Approved Quality Manual Production Process Flowchart List of main production equipment, raw materials and production support materials, and list of inspection and testing equipment Copies of Quality Manual and Quality Procedure Documents The SNI certification process will take a minimum of 20 working days. Once all documents are submitted and the verification process is completed, the SNI certificate in Indonesia will be issued with a validity of 3 years. According to Government Regulation Number 63 of 2007, the cost of SNI certification in Indonesia ranges from 10 to 40 million IDR. Obtain Your SNI Product Certification with InCorp Indonesia For your products to be distributed and sold successfully in Indonesia, the recognition of your product quality and safety through the SNI certificate and product certification is of significant importance. Consumers will need to trust your products before they make their purchase decision. The process of SNI certification may seem daunting and tedious. However, you should not be worried with regards to the application process as the professional team at InCorp Indonesia can assist you directly from the very beginning to the point of license issuance with benefits including: Seamless Process: With our extensive expertise in Indonesia’s regulations, InCorp Indonesia can ensure smooth compliance with the product registration process and regulatory requirements in Indonesia. Comprehensive Solutions: InCorp Indonesia offers tailored strategies to meet the specific needs of your business. Time and Cost Effective: We streamline every product certification process to make your business operations more efficient, saving you time and reducing costs. Get in touch with InCorp Indonesia now and secure a more seamless SNI product certification process for your growing business in Indonesia. Read Full Bio Verified by Hotdo Nauli Senior Legal & Delivery Manager at InCorp Indonesia Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI). Frequently Asked Questions How A PMA company can be eligible to conduct import activities? What licenses and procedures are necessary while engaging in import-related activities? A PMA company in Indonesia must obtain an NIB, which also functions as: Importer Identification Number (Angka Pengenal Impor or API) Producer Importer Identification Number (Angka Pengenal Impor Produsen or API-P), which is required for the import of machinery and equipment, goods, and materials used in production. General Importer Identification Number (Angka Pengenal Impor Umum or API-U), which is required for the import of specific goods for trading purposes, is grouped under one section in the Customs Classification System. Customs Identification Number (Nomor Identitas Kepabeanan or NIK), It functions as an identifying document for the applicable Customs and Excise authorities during the customs clearance process. Some goods may face limitations or restrictions on importation in Indonesia, potentially requiring additional approval from the Ministry of Trade. Recommendations from technical ministries like Industry or Agriculture may influence these approvals. Is there limited responsibility for shareholders in a PMA company? In a PMA Company in Indonesia, shareholders typically have limited liability, meaning they’re not personally liable for agreements or losses beyond their shareholding, except in certain circumstances. Liability may extend if the company isn’t properly established or if shareholders exploit the company in bad faith, engage in unlawful acts, or deplete company assets to the detriment of creditors. What are the functions and responsibilities of a PMA company’s board and management? Indonesian Company Law establishes a two-tier governance system with Directors managing day-to-day operations and representing the company, while the Board of Commissioners supervises and advises them. The articles of association may empower board of Commissioners to provide consent or assistance to Directors for specific legal acts. What requirements are needed if my Indonesian company registers the product? Register the product with BPOM (National Agency of Food and Drugs) and MoH (Ministry of Health). The type of testing and document requirements depend on the type of product you want to register. Also, the time frame for registration could vary between 3 to 15 months. Get in touch with us. 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