Required Report - public distribution

**Date:** 8/4/2008

**GAIN Report Number:** ID8022

ID8022

**Indonesia**

**FAIRS Country Report**

**Annual**

**2008**

**Approved by:**

![](media/image1.wmf)Elisa Wagner

U.S. Embassy, Jakarta

**Prepared by:**

FAS STAFF

**Report Highlights:**

This FAIRS report aims to provide a general summary on the technical
requirements and regulation for food and agricultural imports imposed by
Indonesia. Sections updated: Executive Summary; I. Food Laws; II.
Labeling Requirements; III. Packaging and Container Regulations; IV.
Food Additives Regulations; VI. Other Regulations and Requirements; VII.
Other Specifics Standards: Processed Organic Food; Fresh Fruit and
vegetable; Alcoholic Beverages; IX. Import Procedures: Rice, Sugar; X.
Other Relevant Reports

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Jakarta \[ID1\]

\[ID\]

Table of Contents

[Executive Summary 3](#executive-summary)

[SECTION I. FOOD LAWS 3](#section-i.-food-laws)

[SECTION II. LABELING REQUIREMENTS
5](#section-ii.-labeling-requirements)

[Nutritional Labeling 6](#nutritional-labeling)

[SECTION III. PACKAGING AND CONTAINER REQUIREMENTS
7](#section-iii.-packaging-and-container-requirements)

[SECTION IV. FOOD ADDITIVE REGULATIONS
8](#section-iv.-food-additive-regulations)

[SECTION V. PESTICIDE AND OTHER CONTAMINANTS
9](#section-v.-pesticide-and-other-contaminants)

[SECTION VI. OTHER REGULATIONS AND REQUIREMENTS
10](#section-vi.-other-regulations-and-requirements)

[Product Registration 10](#product-registration)

[The Elimination of 10 Percent VAT on Imports of Certain Strategic
Taxable Goods
11](#the-elimination-of-10-percent-vat-on-imports-of-certain-strategic-taxable-goods)

[SECTION VII. OTHER SPECIFIC STANDARDS
13](#section-vii.-other-specific-standards)

[Genetically Modified Organism (GMO's)
13](#genetically-modified-organism-gmos)

[Fresh Fruit And Vegetables 14](#fresh-fruit-and-vegetables)

[Halal Certification 15](#halal-certification)

[Health Certificates 15](#health-certificates)

[Alcoholic Beverages (Wine and Spirits)
16](#alcoholic-beverages-wine-and-spirits)

[Irradiation Certificates 16](#irradiation-certificates)

[Others 17](#others)

[SECTION VIII. COPYRIGHT AND TRADEMARK LAWS
17](#section-viii.-copyright-and-trademark-laws)

[SECTION IX. IMPORT PROCEDURES 17](#section-ix.-import-procedures)

[Rice 18](#rice)

[Sugar 18](#sugar)

[Seed 18](#seed)

[Meat and Poultry Products 20](#meat-and-poultry-products)

[SECTION X. OTHER RELEVANT REPORTS
20](#section-x.-other-relevant-reports)

[APPENDIX I. GOVERNMENT REGULATORY AGENCY CONTACT
21](#appendix-i.-government-regulatory-agency-contact)

[APPENDIX II. OTHER IMPORT SPECIALIST OR USEFUL CONTACTS
23](#appendix-ii.-other-import-specialist-or-useful-contacts)

**DISCLAIMER:**

This report was prepared by the Office of Agricultural Affairs of the
USDA/Foreign Agricultural Service in Jakarta, Indonesia for U.S.
exporters of domestic food and agricultural products. While every
possible care has been taken in the preparation of this report,
information provided may not be completely accurate either because
policies have changed since its preparation, or because clear and
consistent information about these policies was not available. It is
highly recommended that U.S. exporters verify the full set of import
requirements with their foreign customers, who are normally best
equipped to research such matters with local authorities, before any
goods are shipped. FINAL IMPORT APPROVAL OF ANY PRODUCTS IS SUBJECT TO
THE IMPORTING COUNTRY'S RULES AND REGULATIONS AS INTERPRETED BY BORDER
OFFICIALS AT THE TIME OF PRODUCT ENTRY.

# Executive Summary

Many of Indonesia's regulations related to marketing food are unclear
and confusing and therefore either not enforced at all, or are only
enforced in a haphazard manner. While a review of relevant regulations
is important, the reality of what actually occurs in practice may be
quite different. Therefore, it is essential that exporters confer with
local importers/agents to determine prevailing requirements on imports.

A comprehensive law concerning foodstuffs that controls domestic
production, import of foodstuff, processing and distribution was signed
in 1996, but it took years before the regulations needed to implement
the law were issued. Imports of meat, poultry and fresh fruits can be
subject to shifting regulations and requirements. The most difficult
problem for exporters shipping packaged products for retail may be the
requirement that all imported products be registered with the National
Agency for Drug and Food Control (BPOM) and some products require
additional approvals. This can be a long and onerous process, but
experienced local agents can get it accomplished. An import permit (SPP)
is also required for animal-based food from the Director General of
Livestock in the Ministry of Agriculture and for other food products
from BPOM. Another significant piece of legislation was the Consumer
Protection Act of 1999, which includes general provisions applicable to
food retailing.

Food additives require approval, and special labeling requirements
apply. Food labels are to be in the Indonesian language and must be
easily understood by consumers. Mandatory information includes the
product name, weight or volume in metric units, composition or a list of
ingredients, use by date, production code, BPOM registration number, and
the name and address of the manufacturer or importer. Stickers are
acceptable.

Animal-based food requires Halal labeling. Nutritional labeling
guidelines were issued in January 2005. The law requires the industry to
include nutritional content information on the label. Misleading
information is forbidden and breaches are subject to criminal
proceedings.

Packaging must provide for safety from contamination but no
environmental protection regulations apply. There are no laws affecting
waste disposal, except as applicable to time expired food.

The "use by date" is to be determined by the manufacturer and must be
shown on the label or on the package. The date may not be changed from
the date placed by the original manufacturer. While the date may be of
the form \"best before \....\", it is actually interpreted as an expiry
date. After the use by date passes, unsold food must be destroyed, or
otherwise disposed of under the approval of BPOM.

Protection of intellectual property is underdeveloped in Indonesia, but
trademarks should be registered to provide an element of protection. The
process is not expensive but requires two years to complete. However,
once registered the trademark remains valid indefinitely.

# 

# SECTION I. FOOD LAWS

Republic of Indonesia Act No. 7 of 1996 concerning Food (*Undang-undang
Republik Indonesia Nomor 7 tahun 1996 tentang Pangan*) is the most
comprehensive legislation governing production, import, and distribution
of foodstuffs. Although this was signed into force in November 1996,
some of its provisions have not been enacted or updated from the
previous regulation. For example, provisions in the Act regarding
genetic engineering require further clarification by additional
government regulations and the approved food additives list issued in
1988 and the list of artificial sweeteners issued in 2004 have not been
updated. Until the required regulations are in force, the affected
provisions of the Act would not be enforced.

Other significant legislation concerning food and agricultural imports
include:

-   Law Number 6 of 1967 concerning Essential Stipulations for Animal
    Husbandry and Health of Livestock

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-   Law Number 12 of 1992 concerning Cultivation of Plants

-   Law Number 16 of 1992 concerning Animal, Fish, & Plant Quarantine

-   Law Number 23 of 1992 concerning Health

-   Law Number 9 of 1995 concerning Small Business

-   Law Number 20 of 1997 concerning Non-Tax Government Revenue

-   Law Number 8 of 1999 concerning Consumer Protection

-   Law Number 31 of 2004 concerning Fisheries

-   Law Number 10 0f 1995 and Law number 17 of 2006 concerning Customs
    Tariffs

-   Law Number 11 of 1995 and Law Number 39 of 2007 concerning Excise

-   Law Number 20 of 2008 concerning Micro, Small, and Medium Business

In addition to the Acts listed above there are a number of Presidential
Instructions, Ministerial Regulations, Ministerial Decisions and
Departmental Determinations that regulate food production, import, and
distribution.

**Food Act (UU No 7/1996)**

# 

The broad scope of the Food Act of 1996 can be seen in its preamble,
which includes the following statements:

-   Food is a basic need of mankind and fulfillment of that need is a
    basic right of all Indonesians.

-   Food that is safe, of good quality, nutritious, diverse, and
    provided in adequate quantity is the primary condition that must be
    achieved to provide a nutritional system protecting the health and
    improving the well being of society.

-   Food as a commercial commodity requires an honest and responsible
    trading system so that sustenance is available within the purchasing
    power of the society and the trade in food can play a role in
    national economic growth.

The definition of food in the Act further indicates its comprehensive
coverage:

> *\'Food is everything that originates from biological sources and from
> water, either processed or unprocessed, that is intended to be eaten
> or drunk by humans, including food additives, basic food materials and
> other materials used in the preparation, processing and/or manufacture
> of food and drink.\'*

The official clarification appended to the legislation states that the
Food Act covers the following aspects:

\- Technical criteria concerning food ‑ covering safety, quality and
nutrition as well as provisions for labeling and advertising foodstuff.

\- Responsibilities of those who produce, store, transport and/or
distribute food, together with legal sanctions to enforce the
determinations. (This aspect includes import and export of foodstuff.)

\- The role of government and society in achieving self‑sufficiency in
food and diversity in the foodstuffs consumed.

\- The role of government in fostering a domestic food industry aiming
to improve the characteristics of food for domestic consumption and for
export.

The Act contains the following chapters and sections:

1\. Food Safety covering:

Sanitation.

Food additives.

Genetic engineering and irradiation.

Food packaging.

Quality assurance and laboratory testing.

Contaminated food.

2\. Food Quality and Nutrition:

Food quality.

Nutrition.

3\. Labeling and Advertising Food:

4\. Imports and Export of Food:

5\. Legal Responsibility within the Food Industry.

6\. National Resilience in Food.

7\. Participation by Society.

8\. Monitoring and Enforcement.

9\. Criminal Provisions.

10\. Delegation of Supplementary Tasks and Responsibilities.

11\. Other provisions (Government may override the Act in an emergency).

12\. Effect on earlier acts (remain in force unless in contradiction
with the Act).

13\. Closing provision (the Act is valid from the date of enactment).

# SECTION II. LABELING REQUIREMENTS

**General Labeling**

Requirements for labeling of food products are broad in scope. At the
end of 2003, the head of BPOM published guidelines food labeling.
However, many of these requirements are still not enforced.

All food packaged for sale must be labeled using:

-   The Indonesian language

-   Roman text

-   Arabic numerals

-   Writing that is firmly affixed and clear so as to be easily
    understood by the community.

Information on the package must include at the minimum:

-   The name of the product.

-   Net weight or net volume ‑ using metric units.

-   Name and address of the manufacturer or importer.

-   Registration number

-   Composition or a list of ingredients.

-   Date of expiry.

-   Production date or production code

Product specific requirements for labeling:

-   On products derived from swine: the words \"*MENGANDUNG BABI*.\"
    (Contains pork) to be written in red \'universe medium corps 12\'
    font and enclosed in a red rectangle together with a drawing of a
    pig.

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-   On sweetened condensed milk: the words \"*PERHATIKAN! TIDAK COCOK
    UNTUK BAYI*.\" (Beware! Not suitable for babies) to be written in
    Indonesian in red \'universe medium corps 8\' font and enclosed in a
    red rectangle.

-   Alcoholic beverages must have "MINUMAN BERALKOHOL", DIBAWAH UMUR 21
    TAHUN ATAU WANITA HAMIL DILARANG MINUM (Prohibited for use by people
    under 21 years or pregnant women) on the label.

-   ![](media/image2.jpeg){width="0.5833333333333334in"
    height="0.5833333333333334in"}Irradiated packaged food must carry
    the words \"RADURA:PANGAN IRADIASI\" (Irradiated food), the reason
    for irradiation and this logo. Also required are the name and
    address of the radiation facility, the month and year of
    irradiation, and the country in which the process was carried out.
    If the food can not be re-irradiated, then the label should include
    the word: "TIDAK BOLEH DIRADIASI ULANG" (Not to be re-irradiated).

-   Food derived from genetic engineering must have" PANGAN REKAYASA
    GENETIKA" (Genetically Engineered food) on the label.

-   Processed food for infants, children below five, pregnant or breast
    feeding mothers, people on special diets, elders, and sufferers of
    certain diseases should be informed of the portion size, method of
    use and other necessary instructions, including the impact of the
    food on human health.

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-   If the product has been approved as meeting Indonesian Islamic
    standards, then "Halal" should appear on the package.

Product specific regulated or prohibited claims or implications include:

-   On baby food it is not permissible to state or imply that the food
    can replace mother\'s milk.

-   A label is not permitted to imply that the contents have an
    advantage over products that do not carry a nutritional claim on
    their label.

-   A special claim is not permitted if the nutritional value derives
    from associated food items. For example a breakfast cereal package
    may not include the nutritional contribution of the milk and sugar
    normally added.

-   A claim for benefits to health must be based on product composition
    and normal daily consumption.

-   The statement "free from food additive" may not appear on the label
    for product distributed after October 1, 2008 (BPOM circular letter,
    February 29, 2008).

U.S. labels would be unacceptable unless they meet all the requirements
of the Indonesian law, but stick-on labels meeting Indonesian
requirements may be affixed. Foreign languages in addition to the
mandatory Indonesian language may be used. In general, although they can
be widely found on retail products, foreign expressions are discouraged
since they are seen as potentially misleading to a majority of the
population. Moreover, Indonesia has its own recommended daily allowances
(RDA) (BPOM regulation on August 9), 2007 so comparisons to the U.S. RDA
would be invalid. In reality, there is an abundance of retail products
with two or more languages on the labels.

Labeling regulations are primarily applicable to packaged food for
retail sale. Food delivered in bulk for repackaging or industrial use is
subject only to requirements associated with irradiated foodstuff or
food additives.

Enforcement of regulations is the responsibility of BPOM. The amount of
packaged food in the market place that does not comply with the rules
indicates that BPOM does not have sufficient resources to enforce the
law. Breaches would normally come to the notice of the government only
in the event of a complaint ‑ most likely from a consumer group, a
religious movement, or a competitor.

## Nutritional Labeling

Government regulations for food labeling and advertising require that
the nutrition content information should include the vitamin content,
mineral, or other kinds of nutrition supplements in the following order:
total volume of energy based on amount of energy derived from fat,
protein, and carbohydrate; sodium; total volumes of fat, saturated fat,
cholesterol, carbohydrate, fiber, sugar, vitamins and minerals. BPOM
guidelines for nutrition value information on food labels were issued in
2005.

Any claim of benefits to health must be based on product composition and
normal daily consumption. Implied claims are not allowed.

BPOM divides claims for therapeutic or physiological benefits into three
classes:

1\. Nutritional claims relating to the food\'s value as a source of
energy, protein, vitamins, or minerals are further divided into:
identification of the elements present and clarification of their
benefits.

-   The nutritional elements must be listed and quantified. CODEX
    standards are to be used when no BPOM guidelines exist.

-   Clarification of the benefits of the food element is allowed but can
    not substitute for the quantified list.

2\. Therapeutic claims relating to benefits in curing a disease or
health conditions.

-   Food for the treatment of obesity or diet food may only be
    identified as such if the caloric value is at least 25% lower than
    regular food of the same type.

-   Food may be identified as \"diabetic food\" only if it does not
    contain carbohydrates, or the carbohydrate content is significantly
    lower than regular food of the same type, or the carbohydrate
    content is stated on the label. Diabetic food may not be labeled
    \"low in sugar\" or \"free of sugar\" if the food contains
    carbohydrates.

3\. Claims that a foodstuff has restorative effect. In this respect:

-   It is forbidden to claim that one foodstuff can ensure good health.

-   A claim that a foodstuff constitutes a tonic is not permitted. In
    general the word \"tonic\" should not be used except for \"tonic
    water\".

Health claims must be substantiated by legitimate research. Only a
functional claim that is not misleading is permitted. Examples of
acceptable claims are:

-   Calcium aids in the development of strong bones and teeth.

-   Protein helps to develop and restore body cells.

-   Iron is a factor in red blood cell formation.

-   Vitamin E helps protect fat from oxidation.

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-   Folic acid aids in the development of fetal cranium and spinal cord.

Examples of non‑acceptable claims are:

-   Food with natural fiber content helps improve health and vitality.

-   Food for kids and baby with DHA content helps improve brain cells
    and intelligence.

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-   Soy sauce helps to improve IQ.

In addition to the provisions specified for food labeling, the Consumer
Protection Act of 1999 contains general provisions against misleading
claims. The provisions are wide ranging and apparently give consumers a
high degree of protection from unethical business practices. However,
enforcement of the provisions is still lax.

# 

# SECTION III. PACKAGING AND CONTAINER REQUIREMENTS

Packaging is regulated under the Food Act of 1996 as follows:

-   Any person producing food for sale is forbidden to use any material
    that has been banned or can release contaminants that are dangerous
    or harmful to good health.

-   Food for sale is to be packaged using methods that avoid spoiling or
    contamination.

-   The government identifies forbidden packaging materials and methods
    for packaging certain food.

-   If the effects of a packaging material on human health are not
    known, it can not be used before being checked for safety. New types
    of material may be used for packing food only after receiving
    government agreement.

-   No person is permitted to unwrap and re-pack food, except in the
    case of bulk food intended to be packed into smaller packages.

There are no industry regulations or practices applicable to package
size. The metric system is used for weights and measures. Waste disposal
is not regulated, except as covered in Section VI for time expired food.

BPOM released food packaging guidelines in August 27, 2007 that will
become effective one year after it was signed, in effect allowing BPOM
to enforce the regulations in the Food Act starting in September 2008.
This decree lists the materials permitted or prohibited for food
package.

# 

# SECTION IV. FOOD ADDITIVE REGULATIONS

The Food Act of 1996 states that food additives are not to be used if
they have been banned and may not exceed specified limits. Regulation
No. 02592/B/SK/VIII/91 issued by the Director General for Control of
Food and Medicine, states that all uses of food additives require
approval. The regulation details the process to request approval,
including sample forms. Approval is the prerogative of the Director of
Food Safety Evaluation, BPOM. The regulation states that approval will
be based on an assessment according to guidelines prepared by the head
of BPOM. Other related regulations concerning food additives include the
Head of BPOM decrees of 2008 and 2004, Ministry of Health regulation of
1999, Director General for the Control of Food and Medicine regulation
of 1991, and Director General Control of Food and Medicine decree in
1990. Unfortunately, lists of approved and unapproved food additives are
not available in English.

Approved food additives may be used subject to limitations or conditions
outlined in the approval. They may also be used in other food products
provided that their use does not violate the conditions identified by
the government for that product.

Every import of food additives must be reported in writing to the
Division of Food Certification, BPOM after the goods arrive in harbor.
The report must include:

-   The name of the substance and batch quantity and weight.

-   The name and address of the importer.

-   The name and address of the exporter.

-   The name and address of the producer.

-   The port and date of lading.

-   The port of destination and date of arrival.

-   The name, nationality, and registration number of the ship or
    aircraft carrying the food additive import.

-   The name and address of the warehouse and date into storage.

-   An outline of any accidents that may have occurred during shipping.

A certificate of analysis for the applicable batch must accompany every
import of food additives. The certificate may be issued by the
production plant or by the responsible authority in the country of
origin. Before the import is cleared from the point of entry the
Director of Food Certification, BPOM must agree to the certificate. If a
certificate does not accompany an intended import, then a certificate
must be requested from the Director of

Food Certification before the food additive shipment may enter the
country. The certificate must include:

-   Date that the sample was taken

-   Batch number of the product

-   Test date

-   Test method

-   Statement that the test result was in accordance with criteria for
    the product

A food additive product from an animal source must also have a
certificate of conformity with Islamic purity, \"Halal\". That
certificate is to be issued by the responsible authority in the country
of origin.

Food additives produced, imported, or distributed must comply with the
Indonesian Food Codex or conditions approved by BPOM. For food additives
not listed in the Indonesian Codex, or not having conditions determined
by BPOM, then the FAO/WHO Codex Alimentarius Commission, Food Chemicals
Codex, or appropriate European or FDA regulation applies.

# SECTION V. PESTICIDE AND OTHER CONTAMINANTS

Pesticides and other contaminants are positively regulated, in general
by the Food Act of 1996 and in detail by a joint decree by the Minister
of Health and the Minister of Agriculture, as well as Health Department
regulations regarding metal contamination and microscopic organism
contamination.

Regarding pesticide residues the joint decree states that:

-   The maximum allowable residue for products directly or indirectly
    consumed by humans is as per the appended list. (Ref: *Keputusan
    Bersama Menteri Kesehatan dan Menteri Pertanian Nomor:
    881/Menkes/SKB/VIII/1996, 11/Kpts/TP.270/8/96*).

-   Agricultural products circulated in Indonesia, whether locally
    produced or imported, are not permitted to contain higher levels of
    pesticide than those in the list.

-   Agricultural products imported with greater than the allowed
    pesticide residue must be refused.

-   Tests for pesticide residue are to be conducted in a laboratory
    appointed by the Minister of Health or the Minister of Agriculture.

-   The Minister of Health and the Minister of Agriculture will monitor
    and enforce the joint decree according to their tasks and functions.

The list appended to the joint decree includes 218 pesticides and a
number of potentially contaminated agricultural products for each
pesticide. This regulation can be obtained from Directorate General of
Horticulture, Ministry of Agriculture.

There is no provision for use of alternative standards, for example
CODEX, for pesticides not listed.

Regulation No. 03725/B/SK/VII/89 issued by the Director General for
Control of Food and Medicine specifies maximum allowable levels for
heavy metal contamination. The list covers six metals, arsenic, lead,
copper, zinc, tin, and mercury. For each element an allowable level is
specified for fifteen food classes, for example fruit and fruit
products, soft drinks, and meat and derived products. The final category
is \"other food not listed above\" thus making the list comprehensive.

Similarly, Regulation No. 03726/B/SK/VII/89 issued by the Director
General for Control of Food and Medicine lists sixteen classes of food
and gives allowable limits for specified micro‑organisms in the food
categories.

Lists giving maximum allowable contamination of pesticide, metal, and
microscopic organisms can be obtained from BPOM.

# SECTION VI. OTHER REGULATIONS AND REQUIREMENTS

In March 2008 (HK.00.05.23.1455), BPOM released a regulation that stated
all imported processed food, food raw materials, food additives,
processing aids, food ingredients, and others must obtain import
approval from the head of BPOM for every shipment. This regulation re
enforces the registration of imported food for retail purpose.

The registration process should be conducted by a local agent or
importer. Typically, it takes longer than the officially reported time
frame and costs more than the published rate. Detailed requirements from
the food manufacture and product samples are needed for the registration
process, which can be sent to the local agent or importer*.*

## Product Registration

All imported processed food products must be registered with BPOM except
for:

-   Processed food with a shelf life of less than seven days at room
    temperature.

-   Processed food in small quantities for use in registering with BPOM,
    scientific research, or personal consumption.

Imported processed food for donation purposes is no longer included in
this exemption.

While the regulation indicates that small quantities for personal
consumption do not require registration, Customs officials decide the
quantity permissible and so even small quantities have been seized and
subjected to approval procedures.

Registration requires submission of five standard forms in triplicate
together with:

-   A sample of the food.

-   The label (10 copies) and brochure if applicable.

-   For repackaged product, the operating license of the Indonesian
    business involved and a letter of reference from the original
    production plant.

-   For product produced under license, the Indonesian company\'s
    license and a letter of reference from the overseas factory.

-   For imported products, a reference letter from the overseas factory,
    a health certificate and a radiation-free certificate in accordance
    with existing law.

Information required on the forms include, but is not limited to, the
following:

-   Form A - general information about the food, the name and address of
    the applicant and the factory or company.

-   Form B - the composition and quality of the product and its
    packaging.

-   Form C - the production process including method of cleaning the
    inner wrapping and closure.

-   Form D - quality control and final inspection procedures.

-   Form E - the documents and substances submitted by the applicant.

Once BPOM has received the submission and officials determine that it is
complete, they will issue a Form M8. Incomplete submissions will be
returned with Form M9. The cost of the registration process is not
published in the regulations. Laboratory tests required would be
conducted at a facility nominated by BPOM at the expense of the
applicant.

Certificates required for the import of food products include:

-   BPOM Approval registration (Form M1 or M2)

-   Radiation-free certificate for specific food types (see Section VII
    below)

-   Islamic purity standards ‑ \"Halal\" certificate

-   Health Certificate from country of origin (see Section VII below)

-   Irradiated Food certificate (see Section VII below)

-   Food Additive Analysis certificate (see Section IV above)

In addition, alcoholic liquor has certain requirements based on Ministry
of Health regulation No 1700/B/SK/VIII/82 (see Section VII below).

Following consideration, BPOM will issue:

1\. Form M1 if the registration application is approved

2\. Form M2 if the registration application is only conditionally
approved

3.  Form M3 if the registration application is rejected

## The Elimination of 10 Percent VAT on Imports of Certain Strategic Taxable Goods

On January 8, 2007, The Indonesian Government issued the third amendment
to GOI Regulation No. 12/2001 on Imports and/or Delivery of Certain
Strategic Taxable Goods which Value Added Tax are exempted. This
regulation stated that in order to accelerate the improvement and to
increase the competitiveness of the domestic agricultural business
industry, GOI is eliminating the 10 percent VAT on the import and
delivery of certain strategic taxable goods.

List of Certain Strategic Taxable Goods which the 10 Percent VAT is
eliminated

+---+----------+-------------------------------+-----------------------+
| N | C        | Process                       | Type of Goods         |
| o | ommodity |                               |                       |
| . |          |                               |                       |
+---+----------+-------------------------------+-----------------------+
| I |          |                               |                       |
| . |          |                               |                       |
| E |          |                               |                       |
| S |          |                               |                       |
| T |          |                               |                       |
| A |          |                               |                       |
| T |          |                               |                       |
| E |          |                               |                       |
| C |          |                               |                       |
| R |          |                               |                       |
| O |          |                               |                       |
| P |          |                               |                       |
| S |          |                               |                       |
+---+----------+-------------------------------+-----------------------+
| 1 | Cocoa    | \- Picked, ripened, shelled,  | -   Dried fermented   |
| \ |          | fermented and unfermented,    |     and unfermented   |
| . | \- Fruit | dried                         |     cocoa bean        |
|   |          |                               |                       |
|   |          |                               | -   shell, hull,      |
|   |          |                               |     bran, and other   |
|   |          |                               |     residue for       |
|   |          |                               |     animal feed       |
+---+----------+-------------------------------+-----------------------+
| 2 | Coffee   | -   picked, ripened, shelled, | -   dried coffee      |
| \ |          |     fermented and             |     beans             |
| . | \- Fruit |     unfermented, dried        |                       |
|   |          |                               | -   roasted coffee    |
|   |          | -   picked, ripened, shelled, |     beans             |
|   |          |     fermented and             |                       |
|   |          |     unfermented, dried,       | -   shell, hull,      |
|   |          |     roasted                   |     bran, and other   |
|   |          |                               |     residue for       |
|   |          |                               |     animal feed       |
+---+----------+-------------------------------+-----------------------+
| 3 | Palm Oil | -   picked, taken off from    | -   Fresh Fruit       |
| \ |          |     bunches                   |     Bunches           |
| . | -        |                               |                       |
|   |    Fruit | -   picked, boiled, taken off | -   Shell, waste,     |
|   |          |     from bunches, chopped,    |     leaves, and       |
|   | -        |     pressed, dried, cracked,  |     residue for feed  |
|   |    Shell |     separated from shell and  |                       |
|   |          |     kernel                    | -   Wet/dry shell     |
+---+----------+-------------------------------+-----------------------+
| 4 | Rubber   | -   sap tapped, coagulated    | -   slab              |
| \ |          |                               |                       |
| . | \- sap   | -   sap tapped, coagulated,   | -   sheet             |
|   |          |     ground, and winded        |                       |
|   |          |                               | -   thick latex       |
|   |          | -   sap tapped, coagulated,   |                       |
|   |          |     ground, winded, fused,    |                       |
|   |          |     and preserved             |                       |
+---+----------+-------------------------------+-----------------------+
| 5 | Tobacco  | -   picked, cut, dried,       | -   wet/dried cut     |
| \ |          |                               |     tobacco           |
| . | \- leaf  | -   picked, dried, sorted     |                       |
|   |          |                               | -   wet/dried toacco  |
|   |          |                               |     sheet             |
+---+----------+-------------------------------+-----------------------+
| 6 | Sugar    | -   felled                    | -   sugar cane stalk  |
| \ | cane     |                               |                       |
| . |          | -   felled, cut               | -   sugar cane shoot  |
|   | \- stalk |                               |                       |
+---+----------+-------------------------------+-----------------------+
| 7 | Cotton   | -   picked, dried, lint,      | -   combed carded     |
| \ |          |     carded, combed            |     cotton            |
| . | \-       |                               |                       |
|   | cotton   |                               | -   uncombed and      |
|   | balls    |                               |     uncarded cotton   |
|   |          |                               |                       |
|   |          |                               | -   cotton lint       |
+---+----------+-------------------------------+-----------------------+
| 8 | Jatropha | -   picked, crushed           | -   seed, waste       |
| \ |          |                               |                       |
| . | \- fruit |                               |                       |
+---+----------+-------------------------------+-----------------------+
| 9 | Coconut  | -   picked                    | -   fresh coconut     |
| \ |          |                               |                       |
| . | -        | -   picked, pried, dried      | -   copra             |
|   |    fruit |                               |                       |
|   |          | -   picked, shelled, chopped  | -   dried husk        |
|   | -   husk |                               |                       |
|   |          | -   picked, shelled, dried    | -   dried shell       |
|   | -        |                               |                       |
|   |    shell | -   cut in fresh or preserved | -   fine hairs of     |
|   |          |                               |     coconut           |
|   | -        |                               |                       |
|   |    stalk |                               |                       |
+---+----------+-------------------------------+-----------------------+
| I |          |                               |                       |
| I |          |                               |                       |
| \ |          |                               |                       |
| . |          |                               |                       |
| H |          |                               |                       |
| O |          |                               |                       |
| R |          |                               |                       |
| T |          |                               |                       |
| I |          |                               |                       |
| C |          |                               |                       |
| U |          |                               |                       |
| L |          |                               |                       |
| T |          |                               |                       |
| U |          |                               |                       |
| R |          |                               |                       |
| E |          |                               |                       |
+---+----------+-------------------------------+-----------------------+
| F |          |                               |                       |
| r |          |                               |                       |
| e |          |                               |                       |
| s |          |                               |                       |
| h |          |                               |                       |
| , |          |                               |                       |
| c |          |                               |                       |
| u |          |                               |                       |
| t |          |                               |                       |
| , |          |                               |                       |
| c |          |                               |                       |
| h |          |                               |                       |
| i |          |                               |                       |
| l |          |                               |                       |
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| d |          |                               |                       |
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| n |          |                               |                       |
| d |          |                               |                       |
| f |          |                               |                       |
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| z |          |                               |                       |
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| f |          |                               |                       |
| r |          |                               |                       |
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| y |          |                               |                       |
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| , |          |                               |                       |
| j |          |                               |                       |
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| k |          |                               |                       |
| f |          |                               |                       |
| r |          |                               |                       |
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| i |          |                               |                       |
| t |          |                               |                       |
| , |          |                               |                       |
| l |          |                               |                       |
| a |          |                               |                       |
| n |          |                               |                       |
| s |          |                               |                       |
| e |          |                               |                       |
| h |          |                               |                       |
| f |          |                               |                       |
| r |          |                               |                       |
| u |          |                               |                       |
| i |          |                               |                       |
| t |          |                               |                       |
| , |          |                               |                       |
| a |          |                               |                       |
| n |          |                               |                       |
| d |          |                               |                       |
| j |          |                               |                       |
| u |          |                               |                       |
| i |          |                               |                       |
| c |          |                               |                       |
| y |          |                               |                       |
| t |          |                               |                       |
| u |          |                               |                       |
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| r |          |                               |                       |
| s |          |                               |                       |
| ) |          |                               |                       |
+---+----------+-------------------------------+-----------------------+
| I |          |                               |                       |
| I |          |                               |                       |
| I |          |                               |                       |
| . |          |                               |                       |
|   |          |                               |                       |
| V |          |                               |                       |
| E |          |                               |                       |
| G |          |                               |                       |
| E |          |                               |                       |
| T |          |                               |                       |
| A |          |                               |                       |
| B |          |                               |                       |
| L |          |                               |                       |
| E |          |                               |                       |
| S |          |                               |                       |
+---+----------+-------------------------------+-----------------------+
| F |          |                               |                       |
| r |          |                               |                       |
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| s |          |                               |                       |
| h |          |                               |                       |
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| d |          |                               |                       |
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| a |          |                               |                       |
| v |          |                               |                       |
| e |          |                               |                       |
| s |          |                               |                       |
| , |          |                               |                       |
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| t |          |                               |                       |
| s |          |                               |                       |
| , |          |                               |                       |
| t |          |                               |                       |
| u |          |                               |                       |
| b |          |                               |                       |
| e |          |                               |                       |
| r |          |                               |                       |
| s |          |                               |                       |
| , |          |                               |                       |
| a |          |                               |                       |
| n |          |                               |                       |
| d |          |                               |                       |
| m |          |                               |                       |
| u |          |                               |                       |
| s |          |                               |                       |
| h |          |                               |                       |
| r |          |                               |                       |
| o |          |                               |                       |
| o |          |                               |                       |
| m |          |                               |                       |
| s |          |                               |                       |
| v |          |                               |                       |
| e |          |                               |                       |
| g |          |                               |                       |
| e |          |                               |                       |
| t |          |                               |                       |
| a |          |                               |                       |
| b |          |                               |                       |
| l |          |                               |                       |
| e |          |                               |                       |
| s |          |                               |                       |
+---+----------+-------------------------------+-----------------------+
| I |          |                               |                       |
| V |          |                               |                       |
| \ |          |                               |                       |
| . |          |                               |                       |
| O |          |                               |                       |
| R |          |                               |                       |
| N |          |                               |                       |
| A |          |                               |                       |
| M |          |                               |                       |
| E |          |                               |                       |
| N |          |                               |                       |
| T |          |                               |                       |
| A |          |                               |                       |
| L |          |                               |                       |
| P |          |                               |                       |
| L |          |                               |                       |
| A |          |                               |                       |
| N |          |                               |                       |
| T |          |                               |                       |
| S |          |                               |                       |
| A |          |                               |                       |
| N |          |                               |                       |
| D |          |                               |                       |
| M |          |                               |                       |
| E |          |                               |                       |
| D |          |                               |                       |
| I |          |                               |                       |
| C |          |                               |                       |
| I |          |                               |                       |
| N |          |                               |                       |
| A |          |                               |                       |
| L |          |                               |                       |
| H |          |                               |                       |
| E |          |                               |                       |
| R |          |                               |                       |
| B |          |                               |                       |
| S |          |                               |                       |
+---+----------+-------------------------------+-----------------------+
| 1 | Or       | -   In media or without       | -   Flowers and       |
| \ | namental |     media, packed/unpacked    |     leaves ornamental |
| . | plants   |                               |     plants in media   |
+---+----------+-------------------------------+-----------------------+
| 2 | Cut      | -   Picked, cut, soaked in    | -   Packed/unpacked   |
| \ | or       |     refreshing liquid,        |     cut flowers and   |
| . | namental |     bonded, packed, wrapped   |     leaves            |
|   | plants   |                               |                       |
+---+----------+-------------------------------+-----------------------+
| 3 | M        | -   cut, dried, packed        | -   fresh, dry        |
| \ | edicinal |                               |                       |
| . | herbs    |                               |                       |
|   |          |                               |                       |
|   | -        |                               |                       |
|   |   fruits |                               |                       |
|   |          |                               |                       |
|   | -   leaf |                               |                       |
|   |          |                               |                       |
|   | -   seed |                               |                       |
|   |          |                               |                       |
|   | -        |                               |                       |
|   |   tubers |                               |                       |
|   |          |                               |                       |
|   | -        |                               |                       |
|   |    skin, |                               |                       |
|   |          |                               |                       |
|   |   stalk, |                               |                       |
|   |          |                               |                       |
|   |  flowers |                               |                       |
+---+----------+-------------------------------+-----------------------+
| V |          |                               |                       |
| . |          |                               |                       |
| F |          |                               |                       |
| O |          |                               |                       |
| O |          |                               |                       |
| D |          |                               |                       |
| C |          |                               |                       |
| R |          |                               |                       |
| O |          |                               |                       |
| P |          |                               |                       |
| S |          |                               |                       |
+---+----------+-------------------------------+-----------------------+
| 1 | Rice     | -   cut, husked, separated,   | -   rice straw        |
| \ |          |     dried                     |                       |
| . |          |                               | -   hull              |
|   |          |                               |                       |
|   |          |                               | -   bran              |
|   |          |                               |                       |
|   |          |                               | -   dried rice stalk  |
|   |          |                               |     and waste         |
+---+----------+-------------------------------+-----------------------+
| 2 | Corn     | -   dried, dried, chopped     | -   wet/dry           |
| \ |          |                               |     whole/chopped     |
| . |          |                               |     corn cob          |
|   |          |                               |                       |
|   |          |                               | -   wet/dry whole     |
|   |          |                               |     leaf              |
|   |          |                               |                       |
|   |          |                               | -   wet/dry           |
|   |          |                               |     whole/chopped     |
|   |          |                               |     stalk             |
|   |          |                               |                       |
|   |          |                               | -   wet/dry           |
|   |          |                               |     sheet/chopped     |
|   |          |                               |     corn husk         |
+---+----------+-------------------------------+-----------------------+
| 3 | Peanut   | -   harvested, pulled out,    | -   fresh peanut      |
| \ |          |     cleaned, dried, cracked,  |                       |
| . | \- nut   |     shelled                   | -   dry peanut        |
+---+----------+-------------------------------+-----------------------+
| 4 | Cassava  | -   pulled out, cleaned,      | -   dried cassava     |
| \ |          |     skinned, dried            |                       |
| . | -        |                               | -   wet/dry           |
|   |    tuber | -   cut                       |     chopped/minced    |
|   |          |                               |     cassava tuber     |
|   | -        | -   picked, dried             |                       |
|   |    stalk |                               | -   waste             |
|   |          |                               |                       |
|   | -   leaf |                               | -   stalk             |
|   |          |                               |                       |
|   |          |                               | -   wet/dry leaf      |
+---+----------+-------------------------------+-----------------------+
| V |          |                               |                       |
| . |          |                               |                       |
| L |          |                               |                       |
| I |          |                               |                       |
| V |          |                               |                       |
| E |          |                               |                       |
| S |          |                               |                       |
| T |          |                               |                       |
| O |          |                               |                       |
| C |          |                               |                       |
| K |          |                               |                       |
+---+----------+-------------------------------+-----------------------+
| 1 | Cows,    | -   unprocessed               | -   parent stock      |
| \ | bu       |                               |                       |
| . | ffaloes, | -   slaughtered, skinned,     | -   live              |
|   | goa      |     cut, chilled, frozen,     |                       |
|   | t/sheep, |     packed/unpacked           | -   fresh, chilled,   |
|   | swine    |                               |     frozen meat       |
|   | and      | -   salted, acidified, other  |                       |
|   | other    |     preserved                 | -   carcass, non      |
|   | l        |                               |     carcass, fresh,   |
|   | ivestock | -   salted, boiled            |     chilled, frozen   |
|   |          |                               |                       |
|   | -   skin |                               | -   raw leather and   |
|   |          |                               |     skin, not tanned  |
|   | -        |                               |                       |
|   |  tongue, |                               | -   fresh, chilled,   |
|   |          |                               |     frozen offals     |
|   |    tail, |                               |                       |
|   |          |                               |                       |
|   |  muscle, |                               |                       |
|   |     bone |                               |                       |
|   |          |                               |                       |
|   | -        |                               |                       |
|   |    liver |                               |                       |
|   |     and  |                               |                       |
|   |          |                               |                       |
|   |    other |                               |                       |
|   |          |                               |                       |
|   |   edible |                               |                       |
|   |          |                               |                       |
|   |   offals |                               |                       |
+---+----------+-------------------------------+-----------------------+
| 2 | Poultry  | -   unprocessed               | -   live poultry      |
| \ | (        |                               |                       |
| . | chicken, | -   slaughtered, cleaned,     | -   fresh, chilled,   |
|   | duck,    |     whole/cuts, fresh or      |     frozen meat       |
|   | quail,   |     frozen                    |     including feather |
|   | etc)     |                               |                       |
|   |          | -   collected, cleaned,       | -   carcass and non   |
|   | -        |     salted, packed            |     carcass, fresh,   |
|   |  poultry |                               |     chilled, frozen   |
|   |          |                               |     including offals  |
|   | -   eggs |                               |     and bone          |
|   |          |                               |                       |
|   |          |                               | -   fresh and salted  |
|   |          |                               |     eggs              |
+---+----------+-------------------------------+-----------------------+
| 3 | Dairy    | -   milked, chilled, heated,  | -   fresh,            |
| \ | cattle   |     unsweetened, contained no |     pasteurized,      |
| . |          |     additives, packed,        |     concentrated,     |
|   | -        |     unpacked                  |     unsweetened,      |
|   |    dairy |                               |     contained no      |
|   |          |                               |     additives, cold   |
|   |   cattle |                               |                       |
|   |          |                               |                       |
|   | (milk)   |                               |                       |
+---+----------+-------------------------------+-----------------------+

To comply with the Minister of Health decree concerning expired food,
BPOM issued circular letters Number 0018/BB/EM/4.4/IV/90 and Number
0026/BB/EM/4.4/V/90 (implemented on August 1990) that outline the expiry
dates for imported package food products as follow:

  ---------------------- ------------------------------------------------
  **Product shelf life** **Arrival at the destination port must be:**

  \>= 2 years            1.5 years before the expiry date

  1 year                 8 months before the expiry date

  6 months               4 months before the expiry date

  3 months               2 months before the expiry date
  ---------------------- ------------------------------------------------

# 

# SECTION VII. OTHER SPECIFIC STANDARDS

## Genetically Modified Organism (GMO's)

Following Indonesia's ratification of the Cartagena Protocol, the
Minister of Environment issued a "framework" to be used when designing
regulations to implement the protocol. However, no further progress on
issuing the regulations has been made to date.

The previous process for approving GMO's is defunct and labeling
requirements that have been issued are not enforced. Those regulations
not currently enforced state that any producer using genetic engineering
must ensure that the product is safe for human consumption before
distribution. In terms of labeling requirements for GMO's: 1) The words
GENETICALLY ENGINEERED FOOD shall be contained in labels of food
resulting from genetic engineering; 2) For processed foods containing
genetically modified ingredients, identifying the genetically modified
product in the ingredient list is sufficient.

**Processed Organic Food**

BPOM issued an organic food monitoring regulation in January 2008. The
processed organic food, that is already in the market but does not meet
the new requirements, must comply with the regulation within six months.

Processed organic food must fulfill food safety, quality, nutrition,
label and advertising requirements. Processed organic food includes
product from fresh organic food with or without food additives and other
approved materials. Imported organic foods and fresh organic foods for
processing must be accompanied by a certificate from an institution in
the country of origin that is accredited by an authority recognized by
BPOM.

Processed food can be labeled organic if it contains at least 85 percent
organic food material by weight or volume and excludes added water or
salt.

Processed food containing irradiated or genetically modified materials,
including raw materials and food additives, can not be labeled organic.
Processed food that fulfills processed organic food requirements can
have the word "organic" and the "Organik Indonesia" logo on the label
and advertisements.

## Fresh Fruit And Vegetables

On January 27, 2006, the Minister of Agriculture issued a decree on the
requirements and plant quarantine actions for the importation of fresh
fruit and vegetables into the territory of the Republic of Indonesia No.
37/Kpts/HK.060/1/2006. The purpose of this rule is to ensure that fresh
fruit and vegetables are free from fruit flies. A plant phytosanitary
certificate from the country of origin or country of transit and entry
through the specified seven ports is mandatory. Importation of fresh
fruit and vegetables originating from pest free producing areas must be
declared in the Additional Declaration section of the plant
phytosanitary certificate that accompanies the shipment. Importation
from production areas not pest-free must be given a treatment that may
take the form of cold treatment with temperature appropriate for fresh
fruit and vegetables and for the prevention of the appropriate pest. The
treatment must be declared in the treatment section of the phytosanitary
certificate. Imported fresh fruit and vegetable treatments were
identified in the Head of the Agricultural Quarantine Agency Decree No.
53/Kpts/HK.060/3/06 of March 2006.

Following is the imported fresh fruit and fresh vegetable allowable
treatment:

1.  Cold treatment for

> a\. Mediterranean fruit fly (Ceratitis capitata Wied) and Anasrepah
> spp, Rhagoletis spp

  ------------------------------------- ---------------------------------
  **Temperature**                       **Duration (days)**

  0.0^0^C (32^0^F)                      12

  0.55^0^C (33^0^F)                     13

  1.1^0^C (34^0^ F)                     14

  1.6^0^ C (35^0^ F)                    16

  2.2^0^ C (36^0^ F)                    16
  ------------------------------------- ---------------------------------

> b\. Queensland fruit fly (Bactrocera tryoni Frogg) and Bactrocera spp,
> Rioxa spp

  ------------------------------------- ---------------------------------
  **Temperature**                       **Duration (days)**

  0.0^0^C (32^0^F)                      13

  0.55^0^C (33^0^F)                     14

  1.1^0^C (34^0^ F)                     15
  ------------------------------------- ---------------------------------

2.  Vapor Heat Treatment (VHT)

    a.  for Mediterranean fruit fly (Ceratitis capitata Wied) and
        Bactrocera spp

  ------------------------------------- ---------------------------------
  **Temperature**                       **Duration (minutes)**

  44.4^0^ C (112^0^ F)                  525
  ------------------------------------- ---------------------------------

b.  for Anastrepha spp

  ------------------------------------- ---------------------------------
  **Temperature**                       **Duration (minutes)**

  43.3^0^ C (110^0^ F)                  360
  ------------------------------------- ---------------------------------

3\. Fumigation with Methyl Bromide (CH3Br)

> For all type of fruit files

  --------------------- ----------------------- --------------------------
  **Dose**              **Temperature**         **Duration (minutes)**

  32 gram per m3        ≥ 21^0^ C               120

  40 gram per m3        ≥16^0^-20^0^ C          120

  48 gram per m3        ≥ 11^0^-15^0^ C         120
  --------------------- ----------------------- --------------------------

In December 2006, the Head of the Agricultural Quarantine Agency
released decree No. 348/Kpts/PD.540.220/12/06 to establish California as
a free area for mediterania fruit fly (Ceratitis capitata) in the United
Sates.

In an August 2008 letter, the Director General of Indonesian
Agricultural Quarantine Agency clarified that in-transit cold treatment
is acceptable for all kinds of fruits and that the treatment must be
identified in the Additional Declaration on the phytosanitary
certificate. The statement should be: "The cold treatment is conducted
during in-transit and monitored by time and temperature recorder(s) in
order to meet the requirements of IAQA (Indonesian Agricultural
Quarantine Agency).

An "Import plan" for fresh fruit and vegetables that indicates the
amount, type of product, brand, type of packaging, type of
transportation, container information, country of origin, entrance port,
and transit location should be submitted to the Head of Operational
Plant Quarantine with attention to the Unit Head of Operational Plant
Quarantine in the destination port prior to the loading of the goods in
the country of origin.

## Halal Certification

Islamic purity or "Halal" is important to a large portion of the
Indonesian population. Indonesia requires that imported meat products be
accompanied by halal certificate issued by an approved Islamic Center in
the United States. The eight U.S. Islamic Centers approved by the
Indonesian Council of Ulama (MUI) and notified by the Ministry of
Agriculture on June 18, 2005, include:

1\. Islamic Food and Nutrition Council of America (IFANCA),
Chicago-Illinois: for meat, chicken, and processed products

2\. Halal Food Council SEA, Salisbury, Maryland: for chicken, and
processed products

3\. International Institute of Islamic Thought, Marjac Abbatoir,
Virginia: for chicken only

4\. Islamic Service of Omaha (Halal Transaction), Omaha-Nebraska: for
meat and chicken

5\. Islamic Service of America, Cedar Rapids -- Iowa: for meat, chicken,
and processed food

6\. Muslim Consumer Group for Food Product, Rolling Meadows, Illinois:
for meat, chicken, and processed food

7\. Islamic Information Center of America, Des Palines, Illinois: for
meat, chicken, and processed food

8\. American Halal Foundation (AHF), Boling Brook, Illinois: for meat,
chicken, and processed food

"*Halal slaughtering of poultry*" is defined as the slaughtering of
poultry by a Muslim butcher who is physically and spiritually healthy
and who performs his duties pursuant to Muslim procedures set forth in
the Codex Alimentarius Commission, CAC/GL 24-1997.

## Health Certificates

A health or safety certificate from the country of origin must accompany
all food imports. The certificate is to be issued by the responsible
authority in the country of origin or the exporting country. It should
state that the food is safe or fit for human consumption, and that its
distribution is permitted in the country of origin.

## Alcoholic Beverages (Wine and Spirits)

Alcoholic beverages are strictly controlled and subject to high rates of
excise. The

requirements for obtaining approval for importing alcoholic liquor are
stated in several Ministerial and Departmental documents that should be
researched before contemplating the export of alcohol to Indonesia.

Only one government owned company is permitted to import alcoholic
beverages since the middle of 2007.

Alcoholic beverages are classified into three categories:

-   A is for alcoholic beverages with 1-5% ethanol (C2H5OH) content;

-   B with 5-20% ethanol; and

-   C with 20-55% ethanol.

The government controls the production, importation, distribution and
selling of alcoholic beverages in category B and C. The Minister
determines the type and the amount of the products to be imported.
Distributors and sub distributors of categories B and C can only be sold
to hotels, certain restaurants, bars, pubs, night clubs, and other
places as assigned by a mayor or head of district. The duty free shop is
the only outlet that is allowed to sell B and C category products in
package sizes smaller than 187 ml. Ministry of Health regulation No
1700/B/SK/VIII/82 stated that alcoholic beverages in category A and B
sold in packaging smaller than 200 ml and products in category C sold in
packaging smaller than 250 ml can not be registered.

## Irradiation Certificates

A certificate stating that the product is not contaminated by radiation
greater than the level stated is required to accompany imports of the
food types listed below:

-   Milk and milk products: Cs137 150 Bq/kg

-   Fresh or processed fruit and vegetables: Cs137 300 Bq/kg

-   Fish and seafood both fresh and processed: Cs137 100 Bq/kg

-   Meat and meat products: Cs137 100 Bq/kg

-   Mineral water: Cs137 150 Bq/kg

-   Cereals including corn flour and barley: Cs137 300 Bq/kg

The radiation compliance certificate is to be issued by the responsible
authority in the country of origin or exporting country.

Food products that may be irradiated are as follows:

-   Dry spices to prevent or retard insect infestation.

-   Tubers and root crops (potatoes, onions, garlic) to retard
    sprouting.

-   Grain cereals to prevent insect infestation.

Irradiated food must be labeled as such, using the specified green logo
and the word \"RADURA: PANGAN IRADIASI\". A certificate that states the
following information for the batch must accompany the food:

-   That the food has been irradiated

-   Objective of the irradiation

-   National or international code of the radiation facility

-   Date of treatment

-   Radiation source used with the type, quantity and batch number of
    the food irradiated

## Others

-   Milk products have special regulations

-   Baby food has special regulations

-   Food sanitation laws are contained in the guide to good food
    processing

-   Animal quarantine regulations for live animals vary and should be
    consulted before exporting live animals to Indonesia

# 

# SECTION VIII. COPYRIGHT AND TRADEMARK LAWS

Indonesian copyright law was released in 2002; patent and trademark laws
were released in 2001. In November 2007, Indonesia was moved from the
U.S. priority watch list to the U.S. watch list for protection of
intellectual property.

In general a copyright is valid for 50 years and a patent is valid for
10 to 20 years.

A trademark should be registered at the Directorate General for
Intellectual Property Rights in the Ministry of Justice and Human
Rights. Generally, the process requires over 1 year to complete.

Once registered, trademarks have to be extended every 10 years.

# 

# SECTION IX. IMPORT PROCEDURES

Importer must obtain an import permit (SPP) before product is shipped.
Directorate General of Livestock in the Ministry of Agriculture is
responsible for issuing SPP for animal-based processed food, where as an
SPP for the remaining processed food products is issued by BPOM.

Import documents may be prepared in English, but the level of
comprehension by officials is limited. As an example, Customs would not
accept the term \"cartage\" on an invoice as meaning a freight charge
because \"cartage\" is not in the most widely used English‑Indonesian
dictionary.

Documents should be concise, with simple language, and complete. If all
documentation is complete, customs clearance can be finished as early as
two days. Incomplete documentation could result in delays of several
weeks.

Standard documents, such as invoices, regularly used in the domestic
market, may not be suitable for imports. For example, invoices that show
a list price, a discount percentage, and a total price charged will
result in the duty being levied based on the price before discount,
because the list price is the \"correct\" price.

A determination by a government official can be appealed. However, the
official\'s determination would invariably be couched in terms of the
current legislation and hence would be unlikely to be over‑ruled.
Indonesian Courts give judgments on the basis of perceived justice, and
are not strictly bound by precedent. Hence decisions have a degree of
inconsistency and unpredictability.

## Rice

Imports of specialty rice such as rice for medicinal purposes, 100
percent broken rice, and some other types of rice not produced in
Indonesia are allowed only after obtaining approval from the Ministry of
Trade based on a written recommendation from the Ministry of
Agriculture.

## Sugar

The May 29, 2008 amendment to the Minister of Industry and Trade decree
No. 527/MPP/Kep/9/2004 states that plantation white sugar (semi-refined,
HS No. 1701.91.00 and 1701.99.90) must have ICUMSA ranging from 70 IU to
200 IU. Semi-refined sugar may only be imported by the four importers
registered with the Ministry of Trade if the farm gate price of
semi-refined sugar is above Rp. 5,000/kg and if the domestic production
or supply of semi-refined sugar is not sufficient to meet demand.
Imports are strictly prohibited one month prior to, during, and two
months after the season when local cane is milled. The beginning and end
of the milling seasons is determined by the Minister of Agriculture. The
Minister of Trade has the flexibility to appoint other importers of
semi-refined sugar when needed to support the domestic price and to
maintain the national semi-refined sugar stock.

The Directorate General of Foreign Trade in Ministry of Trade must
approve the volume of sugar, type of sugar, ports of destination and the
valid period of import of sugar imported by ITs. In addition, a surveyor
appointed by the Minister of Trade must inspect the shipment in the
country of origin. The report will be part of import documentation. The
surveyor fees may be borne by the importer. Inspections are not required
for imports of sugar intended for research and technological
development, samples, promotion, carried as personal belongings, and
packages of sugar sent via aircraft.

While the Director General in the Ministry of Trade is responsible for
approving importers and imports, importers are still required to submit
monthly reports to the Directorate General for Import, Ministry of Trade
with the copies to the Directorate General for Chemical Industry, Agro,
and Forest Products of the Ministry of Trade and to the Directorate
General for Estate Crop Productions in the Ministry of Agriculture.

## Seed

Indonesian seed import procedures are mainly regulated based on the
Minister of Agriculture Regulation No. 37 and 38/Permentan/OT.140/8/2006
issued on August 31, 2006. Following is the summary of the regulations:

Every seed variety proposed to be released in Indonesia must undergo an
adaptation test for seasonal crops or observation test for annual crops.
Before conducting the test, the requestor must report to the National
Seed Agency (BBN), which evaluates tests and reports the results to the
Minister of Agriculture. After completing the test, the license from the
variety holder must be attached to the introductory varieties, the
parent seed description must be attached to the hybrid varieties, and
genetically modified organism must meet bio-security requirements.

All written proposals for tested and named variety releases must be
submitted to the Minister of Agriculture through BBN. For every
introductory hybrid variety, it must be documented that the seed can be
produced in Indonesia, and must have attached a guarantee letter from
the seed release requestor containing a statement that the F1 hybrid
seed will be produced in Indonesia within two years after the date of
the release.

Based on the BBN recommendation, the Minister of Agriculture can release
the variety to the market or reject the variety. A released variety will
be published in a Minister Decision letter on variety release, while the
seed release requestor of a rejected variety will be informed in a
written notification containing the refusal reason. An already released
variety can be withdrawn from the market if it is proven to spread new
and dangerous pests or disease and cause some loss to the environment
and the community.

The Minister of Agriculture must provide a license before seed can be
imported.

To acquire an import license for research purposes, the seed must meet
the following requirements:

-   The amount of seed or parent seed is limited to the amount required
    for research as stated in the summary of the research proposal.

-   The seed or parent seed is not currently available in Indonesia

-   Must be accompanied by a seed description

-   Must comply with the plant quarantine law.

The Head of the Agricultural Research and Development Agency will issue
the import license for research purposes and must receive a report from
the importer after the product has been shipped.

Other seeds must meet the following requirements:

-   The variety must be of good quality, be unique, and have a specific
    use.

-   The amount is limited to what is needed for the seed release
    preparation.

-   If the seed has already been released in the Indonesian market but
    the amount is not sufficient to meet domestic demand or the
    propagation cannot be conducted in Indonesia.

-   Must comply with plant quarantine law.

The import license for non-research purposes will be issued by the
Director General of each crop (Horticulture, Food Crops, and Estate).
The import license can be used for:

-   variety release preparation

-   F1 seed procurement

-   plant observer needs

-   export objective needs

Imports of transgenic seeds for non-research purposes must pass
bio-security and food security tests.

The Head of the Agricultural Research and Development Agency and the
Director General of each crop who will issue the import license will
coordinate with the Head of the Agricultural Quarantine Agency.

To acquire a seed import license, an importer must first submit a
written request to the Head of the License and Investment Center (PPI)
complete with the Information Required for Seed Introduction/Importation
to Indonesia form. The Head of the License and Investment Center will
forward the request to each Directorate General or the Head of
Agricultural Research and Development Agency as appropriate within 3
working days after receiving the importer request. The decision to
accept, postpone or reject the import request will be issued within 10
working days after they receive the request from the Head of PPI. If no
notification is received by an importer after 10 working days, it means
that the import license request is accepted. The seed import license
will be valid for six months, and import must be completed within that
period of time.

The importer must submit the seed or parent seed import license to
quarantine officials at the entrance point. The seed or parent seed
importer must:

-   Have a dated record of the imported seed and must keep the record
    for one year.

-   Report to the Head of the Agricultural Research and Development
    Agency or Director General with a cc to the Head of PPI on the
    import progress.

In addition to this regulation, the Decision of the Head of the
Agricultural Quarantine Agency No. 152/Kpts/PD.540/L/8/03 states that
the import of seed must be:

-   accompanied with a Phytosanitary certificate from the country of
    origin and transit country

-   through the determined entrance point

-   reported and delivered to Plant Quarantine Officials at the entrance
    point for quarantine treatments

-   accompanied with an Import License form the Ministry of Agriculture
    or appointed officials

-   accompanied by the original copies of the phytosanitary and import
    licenses, copies of the invoice, packing list, and airway bill or
    bill of lading to be produced for review by Quarantine Officials

Although no Indonesian quarantine lab has been accredited by ISTA, the
Ministry refers to the International Standard for Phytosanitary Measures
from the United Nations Food and Agriculture Organization for quarantine
inspections and actions. Reportedly, there have been cases where
Indonesian lab results indicated the presence of a seed-borne disease
not typically found on that seed. There have also been reports that
certain pests or diseases declared absent on the phytosanitary
certificate was found during the test in the Indonesian lab. When such a
case occurs all of the imported seed must be burned, with no chance for
re-export.

## Meat and Poultry Products

An Import Permit (SPP), issued by the Director General of Livestock
Services (DGLS), must accompany every import of poultry and meat. In a
letter, requesting the certificate, importers must indicate the product
being imported, quantity, and destination (restaurant, hotel, wet
market, etc.).

# SECTION X. OTHER RELEVANT REPORTS

1.  **FAIRS Export Certificate Report:**

[**http://www.fas.usda.gov/gainfiles/200710/146292698.pdf**](http://www.fas.usda.gov/gainfiles/200710/146292698.pdf)

**2. Exporter Guide**

[**http://www.fas.usda.gov/gainfiles/200710/146292580.pdf3**](http://www.fas.usda.gov/gainfiles/200710/146292580.pdf3)

**3. Biotechnology Annual**

[**http://www.fas.usda.gov/gainfiles/200806/146294959.pdf**](http://www.fas.usda.gov/gainfiles/200806/146294959.pdf)

**4. Indonesian Halal Trip Report**

[**http://www.fas.usda.gov/gainfiles/200806/146294960.pdf**](http://www.fas.usda.gov/gainfiles/200806/146294960.pdf)

**5. Indonesian Seed Regime**

[**http://www.fas.usda.gov/gainfiles/200704/146280887.pdf**](http://www.fas.usda.gov/gainfiles/200704/146280887.pdf)

# APPENDIX I. GOVERNMENT REGULATORY AGENCY CONTACT

**Ministry of Finance**

[Directorate General for Customs and Duties]{.underline}

Jalan Jend. A. Yani / By Pass

Jakarta

Tel: +6221-489-7511 Fax: +6221-489-0308

Homepage: <http://www.beacukai.go.id/>

Products regulated: Tariff

**Ministry of Agriculture**

[Directorate General for Food Crops]{.underline}

Jalan AUP

Pasar Minggu, Kotak Pos 97

Jakarta 12520

Tel: +6221-780-6810 Fax: +6221-780-6309

Homepage: <http://www.deptan.go.id/>

[Directorate General for Livestock Services (DGLS)]{.underline}

Building C, 6^th^ Floor

Jalan Harsono RM No. 3, Ragunan

Pasar Minggu

Jakarta 12550

Tel: +6221-781-5580 Fax: +6221-7815581

Homepage: <http://www.ditjennak.go.id/>

Products regulated: animal-based food

[Agency for Agricultural Quarantine]{.underline}

Building E, 5^th^ Floor

Jalan Harsono R.M No. 3

Ragunan, Jakarta 12550

Tel: +6221-781-6483 Fax: +6221-781-6483

Homepage: <http://karantina.deptan.go.id/>

Products regulated: fresh fruit and vegetable

**Ministry of Trade**

[Directorate General for Foreign Trade]{.underline}

Building I, 4^th^ Floor

Jalan M.I. Ridwan Rais No. 5

Tel: +6221- 385-8204, 386-0940 Fax: +6221-385-8191

Homepage: <http://www.djdaglu.go.id/>

Products regulated: rice and sugar.

**Ministry of Industry**

Directorate General for Agro and Chemical Industry

Jalan Gatot Subroto No. 52-53, 18^th^ Floor

Jakarta 12950

Tel: +6221-525-5861/5509 ext 4061/62 Fax: +6221-525-2450/5861

Homepage: <http://www.depperin.go.id/>

Products regulated: sugar

**National Agency of Drugs & Food Control - BPOM**

Deputy III for Dangerous Materials and Food Safety Control

Jl. Percetakan Negara No. 23

Jakarta 10560

Tel: +6221-425-3857 Fax: +6221-425-3857

Homepage: [http://www.pom.go.id](http://www.pom.go.id/)

Products regulated: package food for retail and further processed
includes food additive and processing aids.

**National Standardization Agency - BSN**

Chairman

Manggala Wanabakti Building, Block IV, 4^th^ Floor

Jl. Jend. Gatot Subroto, Senayan

Jakarta

Tel: +6221-574-7043 Ext. 104 Fax: +6221-574-7045

Homepage: <http://www.bsn.go.id/>

Products regulated: products standardization

**The Indonesian Council of Ulama - MUI**

Chairman

Jl. Proklamasi No. 51

Menteng

Jakarta Pusat

Tel/Fax: +6221-391-8915

Homepage: <http://www.mui.or.id/mui_in/index.php>

Products regulated; halal food

Kampus IPB Baranangsiang

Jl. Raya Pajajaran

Bogor

Tel: +62251-358-748 Fax: +62251-358747

# 

# 

# 

# APPENDIX II. OTHER IMPORT SPECIALIST OR USEFUL CONTACTS

**The Indonesian Food & Beverage Association - GAPMMI**

Chairman

Building F, 2^nd^ Floor, Room 224A

Ministry of Agriculture

Jl. Harsono RM No. 3

Jakarta 12550

Tel: +6221-7032-2626/27 Fax: +6221-780-4347

Email: <gapmmi@cbn.net.id>

Homepage: <http://www.gapmmi.or.id/>

**The Indonesian Food Manufacturer Association -- ASPIPIN**

Chairman 1

c/o PT Olaga Sukses Mandiri

Sudirman Tower, 10^th^ Fl.

Jl. Jend. Sudirman Kav. 60

Jakarta 12190

Tel: +6221-522-3344 Fax: +6221-522-3444/522-4747

Email: <alhami@indosat.net.id>

**The Indonesian Cold Chain Association -- ARPI**

Chairman

Graha Mustika Ratu Building, Mz Floor

Jl. Gatot Subroto Kav 74-75

Jakarta 12870

Tel: +6221-830-6609 Fax: +6221-830-6609

Email: <arpi@arpionline.org>; <arpi@cbn.net.id>

**Association of Indonesian Fresh Fruit and Vegetable Importers
(*ASIBSINDO*)**

Chairman

Komplek Material Mangga Dua Building

Jalan Mangga Dua Raya Blok F4/25

Jakarta 10730

Tel: +6221-390-6973 Fax: +6221-3906-5674

**Indonesian Consumer Organization - YLKI**

Chairperson

Jalan Pancoran Barat VII No. 1

Duren Tiga, Pasar Minggu

Jakarta 12760

Tel: +6221-798-1858 Fax: +6221-798-1038

Email: <konsumen@rad.net.id>;

Homepage: [www.ylki.org](http://www.ylki.org/)

**Association of Flourmills - APTINDO**

Chairperson

Daniprisma Building, 3^rd^ Floor

Jl. Sultan Hasanuddin No. 47-48

Jakarta 12160

Ph: +6221-7279-7843 Fax: +6221-720-6008

Email: <aptindo@rad.net.id>

**Association of Meat Importers - ASPIDI**

Chairman

Jl. Raden Inten No. 82C

Duren Sawit

Jakarta 13440

Ph: +6221-7033-0972/3 Fax: +6221-8661-4162

Email: <asp-1984@cbn.net.id>

**American Soybean Association - ASA**

Indonesian Representative

C/O PT Swaco Prima Windutama

Wisma Mitra Sunter #402 Block C-2

Jl. Yos Sudarso Kav. 89

Jakarta 14350

Ph: +6221-651-4752 Fax: +6221-651-4753

Email: <asagrain@indosat.net.id>

**US Wheat Associates**

Indonesian Representatives

C/O HBS & Associates

Jl. Saung Gintung No. C-2, Cirendeu

Jakarta 15419

Ph: +6221-749-1455 Fax: +6221-749-1455

Email: [hbsuta@indo.net.id](mailto:hbsuta@indonet.net.id)

**Regional COOPERATORS who also cover Indonesia:**

**USA Poultry & Egg Export Council**

#15-04 Liat Towers

541 Orchard Road

Singapore 238881

Ph: +65-6797-1726 Fax: +65-6737-1727

Email: <usapeec_sing@pacific.net.id>

**U.S. Meat Export Federation**

#15-03 Liat Towers

541 Orchard Road

Singapore 238881

Ph: +65-6733-4255/56 Fax: +65-6732-1977

Email: <singapore@usmef.com.sg>

**U.S. Wheat Associates**

#15-02 Liat Towers

541 Orchard Road

Singapore 238881

Ph: +65-6737-4311 Fax: +65-6733-9359

Email: <msamson@uswheat.org>

**U.S. Potato Board**

48 Toh Guan Road East

#02-129 Enterprise Hub

Singapore 608586

Ph: +65-6515-6113 Fax: 65-6278-4372

Email: r<ichelieu@lieumktg.com.sg>