DECREE OF THE MINISTER OF INDUSTRY AND TRADE
No. 108/MPP/Kep/5/1996

ON
PRODUCT QUALITY STANDARDIZATION, CERTIFICATION, ACCREDITATION AND
CONTROL WITHIN THE MINISTRY OF INDUSTRY AND TRADE

THE MINISTER OF INDUSTRY AND TRADE,

Considering :

• a. that to guarantee the quality of a product and raise productivity in the framework of enhancing competitiveness, providing protection to consumers, workers and the community in terms of safety, health and environment and supporting efforts to achieve mutual recognition with other countries with respect to standardization activities, it is deemed necessary to regulate product quality standardization, certification, accreditation an control within the Ministry of Industry and Trade;
• b. that the national standard valid in the entire territory of the Republic of Indonesia is the Indonesian Nation; Standard;
• c. that to this end, it is necessary to issue the Decree of the Minister of Industry and Trade;

In view of :

• 1. Law No. 10/1961 on goods (Statute Book No. 215/1961, Supplement to Statute Book No. 2210);
• 2. Law No. 2/1981 on legal metrology (Statute Book No. 11/1981, Supplement to Statute Book No. 3193);
• 3. Law No. 5/1984 on industry;
• 4. Government Regulation No. 17/1986 on the authority to regulate, foster and develop industry;
• 5. Government Regulation No. 1/1982 on the implementation of exports, imports and foreign exchange traffic (Statute Book No. 1, Government Regulation No. 1/1982 on the implementation of exports, imports and foreign exchange traffic (Statute Book No. 32/1985, Supplement to Statute Book No. 3291/1985);
• 6. Government Regulation No. 15/1991 on the Indonesian National Standard;
• 7. Presidential Decree No. 44/1974 on the organizational principles of ministries;
• 8. Presidential Decree No. 7/1989 on the National Standardization Council;
• 9. Presidential Decree No. 12/1991 on the formulation, application and control of the Indonesian National Standard;
• 10. Presidential Decree No. 96/M/1993 on the establishment of 6th Development Cabinet, as already amended b Presidential Decree No. 388/M/1995;
• 11. Presidential Decree No. 2/1996 on the amendment to Presidential Decree No. 15/1984 on the organization, structure of ministries, as already amended twenty-five times, the latest by Presidential Decree No. 61/1995; 12. Presidential Instruction No.2/1990 on the simplification of the procedure for the quality testing of fresh an frozen fish for export;
• 13. Presidential Instruction No. 2/1991 on the improvement of the fostering and control of products and the distribution of processed food;
• 14. Joint Decree of the Minister of Agriculture, the Minister of Health and the Minister of Trade No.363/Kpts/IK.120/5/1990, No. 248/Menkes/SKB/V/1990 and No. 143/Kpb/V/1990 on the enforcement directive r Presidential Instruction No. 2/1990 on the simplification of the procedure for the quality testing of fresh an frozen fish for-export;
• 15. Decree of the Minister of Industry and Trade No. 29/MPP/SK/2/1996 on the organization and the working system of the Ministry of Industry and Trade;

DECIDES :

To revoke:

• 1. Decree of the Minister of Industry No. 203/M/SK/II/1992 on standardization, certification and accredited within the Ministry of Industry;
• 2. Decree of the Minister of Industry No. 192/M/SK/IX/1993 on the organization and the working system of the Accreditation Committee of the Ministry of Industry;
• 3. Decree of the Minister of Industry No. 228/M/SK/9/1994 on the amendment to Decree of the Minister of Industry No. 192/M/SK/9/1993 on the organization and the working system of the Accreditation Committee of the Ministry of Industry;
• 4. Decree of the Minister of Industry No. 192/M/SK/8/1994 on the stipulation on and the procedure for the use of the SNI mark on industrial products;
• 5. Decree of the Minister of Industry No. 244/M/SK/8/1994 on the improvement of Decree of the Minister of Industry No. 192/M/SK/8/1994 on the stipulation on and the procedure for the use of the SNI mark an industrial products;
• 6. Decree of the Minister of Trade No. 22/Kp/II/1995 on quality standardization, certification and control within the Ministry of Trade;
• 7. Decree of the Minister of Trade No. 23/Kp/II/1995 on the Accreditation Committee within the Ministry of Trade;
• 8. Decree of the Minister of Trade No. 328A/KP/XII/1995 on the stipulation of the Indonesian National Standard (SNI);
• 9. Decree of the Minister of Trade No. 328B/KP/XII/1995 on the granting of authority to implement quality control activities to the Director General of Foreign Trade and the Director General of Domestic Trade;
• 10. Decree of the Minister of Trade No. 328C/KP/XII/1995 on the temporary appointment of a product certification institute, a personnel certification institute, a testing laboratory and an export product sample collecting agency;
• 11. Decree of the Minister of Industry and Trade No. 03/MPP/SK/I/1996 on the postponement of the enforcement of Decree of the Minister of Trade No. 22/KP/II/1995 on quality standardization, certification, accreditation and control within the Ministry of Trade.

To stipulate :

THE DECREE OF THE MINISTER OF INDUSTRY AND TRADE ON PRODUCT OUALITY STANDARDIZATION, CERTIFICATION, ACCREDITATION AND CONTROL WITHIN THE MINISTRY OF INDUSTRY AND TRADE

CHAPTER I
GENERAL PROVISIONS

Article 1

Referred to in this decree as :

• 1. A standard shall be a technical specification or something standardized, formulated on the basis of the consensus of all relevant parties with account taken of the requirements for health and safety, the development of science and technology, experience, and present and future development in order to obtain the greatest benefit;
• 2. Standardization shall be a process of the formulation, revision, stipulation and application of a standard, implemented in an orderly manner and in cooperation with all parties;
• 3. The Indonesian National Standard (SNI) shall be a standard stipulated and made applicable by the Minister on a national scale in Indonesia after an approval has been obtained from the Council;
• 4. The National Standardization System (SSN) shall be a system of network of standardization activities and facilities which are harmonious, compatible and integrated and have a national concept as its basis, comprising all standard formulations, standard application, standardization fostering and control, standardization, metrological and accreditation cooperation and information;
• 5. Standard formulation shall be a process of formulating the Indonesian National Standard (SNI), which shall guarantee national consensus among interested parties, including government agencies, organization of entrepreneurs, organization of workers and organization of companies, the community of scientists and technological experts, producers as well as representatives of consumers and product and or service users;
• 6. Standard revision shall be an activity of improving the standard in conformity with the necessity, which is carried out in accordance with the content of the fifth point;
• 7. Standard application shall be a company's activity in using SNI and/or other standards referred to and recognized with respect to ( ...... blank .... Ed.);
• 8. A product shall be a commodity or service turned out by a company dealing in an Industrial and or service business under the fostering authority of the Ministry of Industry and Trade;
• 9. Certification shall be a process connected with the activity of awarding a certificate;
• 10. A certificate shall be a document stating the agreement between the outcome of a certification activity and the requirement stipulated;
• 11. A certification institute shall be an impartial and neutral unit/institute already accredited by the National Accreditation Committee in order that it may undertake certification;
• 12. A quality system certification institute shall be a certification institute undertaking quality system certification;
• 13. Quality system certification shall be an activity of awarding a quality system certificate to a company already capable of applying the quality system in accordance with SNI of 19-9000 series or another standard referred to and recognized in its organizational activities to turn out products;
• 14. A testing laboratory shall be a laboratory accredited by the National Accreditation Committee to undertake testing result certification;
• 15. Testing result certification shall be an activity of awarding a testing result certificate stating the testing result o a product sample which has been tested in accordance with a particular specification/testing method/standard;
• 16. A Quality Conformity Certificate, hereinafter abbreviated as SM, shall be a certificate issued by a testing laboratory for the purpose of the export of a commodity which has not had/does not have an SNI Mark, and containing conformity with respect to the type, quantity and quality of the commodity;
• 17. A product certification institute shall be an institute undertaking the certification of a product;
• 18. Product certification shall be an activity of awarding a product certificate to a company already capable o turning out a product with a consistent quality in accordance with the standard referred to and recognized;
• 19. A Certificate of Product Using the SNI Mark shall be product certification granted to a company already capable of turning out a product with a consistent quality in conformity with the SNI;
• 20. An SNI Mark shall be a product certification mark in the form of a mark affixed on a commodity, packing o label, stating that the said commodity and/or service fulfils the SNI requirements;
• 21. A technical inspection institute shall be an institute undertaking technical inspection certification;
• 22. Technical inspection certification shall be an activity of granting a technical inspection certificate stating the outcome of an inspection and/or testing of a particular piece of work, commodity and/or service, process facility and infrastructure in accordance with a particular technical specification/standard with account taken of the aspects of security, safety and environment already stipulated;
• 23. A personnel certification institute shall be an institute undertaking personnel certification;
• 24. Personnel certification shall be an activity of granting a personnel certificate stating that the personnel concerned has fulfilled particular technical requirements set forth for the implementation of a standardization activity;
• 25. Product quality control shall be an activity of control over the product of a company applying the SNI and/c another standard referred to and recognized;
• 26. A quality system assessor shall be an officer already registered by a personnel certification institute to under take the assessment of a quality system in the framework of certification and accreditation;
• 27. A laboratory assessor shall be an officer already registered by a personnel certification institute to undertake the assessment of a quality system and the technical capacity of a laboratory in the framework of certification and accreditation;
• 28. A Sample Collecting Officer (PPC) shall be an officer of a testing laboratory registered by a personnel certification institute to collect samples in accordance with the stipulations of the 5N1 or other standards referred t and recognized;
• 29. Accreditation shall be formal recognition of a unit/institute to undertake a particular standardization activity, in accordance with the requirements and criteria stipulated by the Council;
• 30. The Accreditation Committee of the Ministry of Industry arid Trade shall be an accreditation committee of technical government agency within the Ministry of Industry and Trade, established in accordance with the requirements and criteria stipulated by the Council with respect to the National Accreditation Committee;
• 31. The Council shall be the National Standardization Council (DSN) as established by virtue of Presidential Decree No. 20/1984 Jo Presidential Decree No. 7/1989;
• 32. The Minister shall be the Minister of Industry and Trade;

CHAPTER II
STANDARDIZATION

Article 2

Standardization activities within the Ministry of Industry and Trade shall encompass standard formulation, standard revision, standard stipulation and standard application undertaken in accordance with the SSN.

Article 3

The coordination of standardization activities as meant in Article 2 shall be implemented by the Standardization Center.

Article 4

(1) The SNI stipulated and made applicable by the Minister may be applied compulsorily and voluntarily.

(2) Compulsory application of the SNI as meant in sub-article (1), hereinafter referred to as Compulsory SNI (SNI-Wajib) shall be stipulated by the Minister after obtaining consideration from the Fostering Director General for products linked with the interests of the safety and health of consumers, product users or the community and the sustainability of the environment.

(3) Voluntary application of the SNI as meant in sub-article (1), hereinafter referred to as Voluntary SNI (SNI-Sukarela), shall be intended for products not included in sub-article (2).

(4) Voluntary application of the SNI as meant in sub-article (1) may in future be stipulated to be compulsory on the basis of technical, economic and other considerations.

Article 5

For particular products not included in article 4 sub-article (2), the Minister can stipulate the quality for export products compulsorily after he has obtained considerations from the Director General of International Trade and the relevant Fostering Director General.

CHAPTER III
CERTIFICATION

Part One
Certification Scope

Article 6

Certification activities within the Ministry of Industry and Trade shall encompass quality system certification, product certification, testing result certification, technical inspection certification and personnel certification implemented in accordance with the SSN.

Article 7

(1) The certification activities as meant in Article 6 shall be carried out by certification institutes as follows:

• a. quality system certification by a quality system certification institute;
• b. product certification by a product certification institute;
• c. testing result certification by a testing laboratory;
• d. technical inspection certification by a technical certification institute; e. personnel certification by a personnel certification institute.

(2) The certification institutes as meant in sub-article (1) shall be institutes already accredited by the National Accreditation Committee.

Article 8

To obtain certificates from the certification activities as meant In Article 6, a company or an Individual must file a written application.

Part Two
Quality System Certification

Article 9

A company shall obtain a quality system certificate if the company has undergone the assessment undertaken by a quality system assessor and has fulfilled the requirements of the quality system standard of SENI of 19-9000 series or other quality system standards referred to and recognized.

Part Three
Product Certification

Article 10

(1) Every company wishing to obtain a product certificate must be able to turn out a product consistently conforming to the standard referred to and recognized.

(2) Every company wishing to obtain a product certificate must use one of the quality system modules and must obtain a testing result certificate or a technical inspection certificate.

(3) The quality system modules as meant in sub-article (2) shall be:

• a. Module I shall be a Module of Self-Statement, namely a statement of capability by a producer in the form of a Self-Statement Letter on the basis of the outcome of an inspection by the producer concerned of production facilities, production processes and product quality control, in accordance with the Council's Guideline.
• b. Module II shall be a Product Quality Assurance Module, namely a statement of a producer's capability in the form of a Quality System Certificate based on SNI 19-9003, the Quality System of Quality Assurance Model in inspection and final testing.
• c. Module III shall be a Production Quality Assurance Module, namely a statement of a producer's capability in the form of a Quality System Certificate on the basis of SNI 19-9002, the Quality System of Quality Assurance Model in production, installation and services.
• d. Module IV shall be a Comprehensive Quality Assurance Module, namely a statement of a producer's capability in the form of a Quality System Certificate on the basis of SNI 19-9001, the Quality System of Quality Assurance Module in Design, Development, Production, Installation and Services.
• e. Module V shall be a Quality Assurance Module, namely a statement of a producer's capability in the form of a Quality System Certificate on the basis of a Quality System Standard referred to and recognized other than the SNI of 19-9000 series.

(4) Testing conducted by a testing laboratory or inspection undertaken by a technical inspection institute in the framework of obtaining a product certificate as meant in sub-article (2) can be carried out only with respect to companies already possessing Quality System Certificates or Self-Statement Letters (for Module I).

Article 11

(1) A company whose products belong to the compulsory SNI category as meant in Article 4 sub-article (2) must possess a Certificate of Product Using the SNI Mark.

(2) A company whose products belong to the voluntary SNI category as meant in Article 4 sub-article (3) may file an application for a Certificate of Product Using the SNI Mark.

Article 12

(1) A Certificate of Product Using the SNI Mark shall be grant-d by the Minister.

(2) The Minister shall delegate the authority as meant in sub-article (1) to the Secretary General.

(3) The stipulations on and the procedure for the certification of products using the SNI Mark shall be regulated further by the Secretary General.

Article 13

In the event of product certification, the Standardization Center of the Ministry of Industry and Trade shall perform a function as a product certification institute.

Part Four
Testing Result Certification

Article 14

A company shall obtain a testing result certificate If the product sample of the said company has undergone testing and the result fulfils the requirements of SNI or other standards referred to and recognized.

Part Five
Technical Inspection Certification

Article 15

A company shall obtain a technical inspection certificate if particular working system, products, processes, faculties and infrastructures of the company have undergone inspection and/or testing and the result fulfils the SNI requirements or other standards referred to and recognized.

Part Six
Personnel Certification

Article 16

(1) An individual shall obtain a personnel certificate if he fulfils particular technical requirements set forth for the implementation of activities linked with the standardization stipulated by the Council's Guideline.

(2) The Center for Product Quality Testing and Consumers' Protection of the Ministry of Industry and Trade shall perform the function as a personnel certification institute specially for sample collecting officers.

CHAPTER IV
ACCREDITATION

Article 17

(1) Accreditation shall conducted by the National Accreditation Committee at the suggestion of the Accreditation Committee of the Ministry of Industry and Trade.

(2) The Accreditation Committee of the Ministry of Industry and Trade as meant in sub-article (1) shall be headed by the Head of the Agency for Industrial and Trade Research and Development, with members made up of at least the representatives of the Directorates General, the Standardization Center, the Organization and Legal Affairs Bureau, the Center for Product Quality Testing and Consumers' Protection, consumers and professional circles.

(3) The procedure for accreditation of certification institutes as meant in Article 7 sub-article (1) shall be stipulated by the Chairman of the Accreditation Committee of the Ministry of Industry and Trade in accordance with the guideline issued by the Council.

Article 18

The organizational structure and the working system of the Accreditation Committee of the Ministry of Industry and Trade as meant in Article 17 sub-article (1) shall be further regulated by the Head of the Agency for Industrial and Trade Research and Development.

CHAPTER V
EXPORT PRODUCT QUALITY CONTROL

Article 19

The quality of export products as meant In Article 5 may not be lower than that stated in the requirements of SNI or other standards referred to.

Article 20

Exporters shall be responsible for the quality of export products as meant In Article 19.

Article 21

The Ministry of Industry and Trade shall exercise control over the quality of export products as meant In Article 19.

Article 22

(1) Quality control as meant in Article 21 shall be exercised through certification in the form of Quality Conformity Certification (SM) or product certification.

(2) For products not yet/not possessing the SNI Mark, the SM as meant in sub-article (1) shall serve as a document whose attachment to every Export Notice (PEB) shall be compulsory.

Article 23

(1) Control over the quality of export products as meant in Article 5 through certification in the form of the SM as meant In Article 22 shall be exercised over lots of goods which are ready to be exported prior to shipping by means of testing by a testing laboratory of the sample collected by the sample collecting officer.

(2) The stipulation on the procedure for certification in the form of the SM as meant in sub-article (1) shall be regulated further by the Secretary General of the Ministry of Industry and Trade.

Article 24

(1) Control over the quality of export products through certification in the form of a product certificate as meant in Article 22 shall be exercised by means of mentioning the number of the product certificate in the Export Notice (PEB) and through impromptu control by the Ministry of Industry and Trade.

(2) Further stipulations on the control over the quality of export products in the form of a product certificate as meant in sub-article (1) shall be further regulated by the Secretary General of the Ministry of Industry and Trade.

CHAPTER VI
CONTROL OVER THE QUALITY OF IMPORTED PRODUCTS AND
DOMESTIC PRODUCTION CIRCULATING IN THE MARKET

Article 25

(1) It is prohibited that the quality of imported products similar to domestic production whose standard is the compulsory SNI shall be lower than the SNI requirements.

(2) The quality of domestically produced products bearing the SNI Mark and circulating in the market may not be lower than that required by the SNI.

(3) Quality control over imported products and domestic production circulating in the market shall be further regulated by the Minister.

CHAPTER VII
EXPENSES

Article 26

(1) The expenses arising in the collection of samples, testing, assessment, accreditation, corporate assessment in the framework of standardization, certification and accreditation shall be borne by the company/institute concerned.

(2) Expenses arising in the collection and testing of samples in the framework of impromptu control by the government with respect to export products with product certificates as meant in Article 23 sub-article (1) shall be borne by the budget of the Ministry of Industry and Trade.

CHAPTER VIII
PROVISIONS ON SANCTIONS

Article 27

(1) A company affixing the SNI Mark on its product because of the requirements of either the compulsory SNI or the voluntary SNI and deliberately or through neglect turning out products not conforming to the SNI requirements shall be subject to a criminal sanction pursuant to the stipulation in Article 26 of Law No. 5/1984 on Industry.

(2) A company affixing the SNI Mark on its products, packing and or label, but not possessing a Certificate of Product Using the SNI Mark, shall be subject to an administrative sanction In the form of the revocation of its industrial business license.

Article 28

(1) On the basis of the outcome of the inspection as meant in Article 20 of this decree, if:

• a. an exporter not yet obtaining a product certificate does not attach the SM to the PEB, the Minister may impose a sanction in the form of export ban of the product concerned;
• b. an exporter already obtaining a product certificate proves to have exported products not in conformity with the requirements of the SNI or other standards referred to and recognized, the Minister may impose a sanction in the form of an obligation of attaching the SM to the PEB in conducting the export concerned;
• c. the PPC violates the stipulation on export product quality control, the Minister may impose a sanction in the form of prohibition to collect export product samples;
• d. a quality testing laboratory violates the export product quality control stipulations, the Minister may impose a sanction in the form of prohibition to conduct export product sample testing.

(2) The Minister shall delegate the export ban as meant in sub-article (1) to:

• a. the Director General of International Trade, for the imposition of a sanction in the form of export ban on exporters not yet obtaining product certificates and net attaching the SM;
• b. the Director General of International Trade for the imposition of a sanction in the form of the obligation to attach the SM to the PEB on exporters not obtaining product certificates;
• c. Head of the Center for Product Quality Testing and Consumers' Protection for the imposition of a sanction in the form of prohibition to collect export product samples on the PPC;
• d. The Secretary General for the imposition of a sanction in the form of prohibition to conduct export product sample testing on a testing laboratory.

Article 29

Stipulations on the enforcement of the sanctions as meant in Article 27 and Article 28 shall be further regulated by the Secretary General of the Ministry of Industry and Trade.

CHAPTER IX
QUALITY COUN8ELLING

Article 30

(1) Domestic product quality counseling shall be implemented by the Fostering Directorate General and the Regional Office of the Ministry of Industry and Trade/the Office of the Ministry of Industry and Trade in cooperation with relevant government agencies.

(2) Quality counseling as meant in sub-article (1) shall be the act of fostering companies in the framework of using the SNI Mark and companies already granted product certificates but not fulfilling the stipulations.

CHAPTER X
TRANSITIONAL PROVISIONS

Article 31

(1) In the event of there being no accredited testing laboratories, technical inspection institutes and personnel certification institutes, the Secretary General of the Ministry of Industry and Trade may appoint testing laboratories, technical inspection institutes and personnel certification institutes to function as accredited institutes.

(2) All ministerial decrees concerning standardization, certification and accreditation and quality control shall remain valid as far as they do not conflict with this decree or have not been replaced with new ones on the basis this decree.

(3) All applications for Certificates of Product Using the SNI Mark already filed prior to the enforcement of this decree shall be processed pursuant to the stipulation in the Decree of the Minister of Industry No. 192/M/SK/8/1994 on the stipulations on and the procedure for the use of the SNI Mark on industrial products by the Standardization Center and shall be signed by the Secretary General.

CHAPTER XI
CLOSING PROVISION

Article 32

This decree shall take effect as from the date of stipulation.

Stipulated in Jakarta
On May 22, 1996
THE MINISTER OF INDUSTRY AND TRADE
sgd
T. ARIWIBOWO