WORLD TRADE
ORGANIZATIONG/SPS/GEN/92
15 September 1998
(98-3484)
Committee on Sanitary and Phytosanitary Measures Original:  English
QUALITY ASSURANCE SYSTEM FOR AGRICULTURAL PRODUCTS
TOWARDS AN INTERNATIONAL STANDARD:
THE INDONESIAN EXPERIENCE1
Submission by Indonesia at the Meeting of 15-16 September 1998
I. INTRODUCTION
The GATT agreement emanating from the Urug uay Round can be viewed as a formalized
form of globalization of the economy and of trade liberalization . It has had a significant impact on the
system of world trade in agricultural products, which relies on a high level of competitiveness and
puts the emphasis on efficiency, productivity, and quality. In this connection, the development of a
standardization system constitutes one of the key policy instruments towards the realization of thesethree elements and in anticipating changes in this strategic environment.
However, the fact that many developed countries are changing their trade policy instrument
from tariff barriers to non-tariff barriers, in the form of TBT (technical barriers to trade) and SPS
(sanitary and phytosanitary) measures, is giving the developing countries some concern. After theentry into force of the WTO Agreement in January 1995, many countries, particularly industrialized
countries, appear to have applied quality standards and technical regulations more stringently than
previously. By 1996, no less than 6000 technical standard regulations on TBT and SPS had been
notified to the WTO. Such a high number of notifications seems to point to the existence of a steady
shift in the application of macro-economic policy instruments, as mentioned earlier.
Regulatory reform and harmonization toward s international standards for agricultural
products are carried out through a quality assurance system within a system of standardization. SPS
measures are probably the main issuing source of re gulations on technical standards, comprising two
aspects, namely the quarantine and the food safety aspects.
 In the coming years, the implementation of non-tariff  barriers will most likely tend to
increase. However, if the developing countries are able to meet the technical requirements
immediately, the competitiveness of food commodities on the international as well as the domestic
market will improve rapidly. In this regard, Indonesia has both the opportunity and the ability to
become more competitive. Nevertheless, this will only be possible if the country’s existing potential,
both structural and functional, can be utilized properly and with better coordination between thevarious government institutions concerned - particularly at the important policy-making level - and
the private sector (as economic agents) in facing the changing global environment. Only then will
Indonesia survive in the world trade competition.
The purpose of this paper is to describe briefly the development of the quality assurance
system within the standardization system for agricu ltural products in Indonesia. Its scope will only
cover the system of standardization of agricultural products in relation to the food safety aspect and
will not include the quarantine aspect.
                                                     
1  Paper presented at the WTO Regional Seminar on SPS, Manila, Philippines, 30 June-3 July 1998, by
Dr. Wahyudi Sugiyanto, Director, Center for Standard ization and Accreditation, Agency of Agribusiness,
Ministry of Agriculture.G/SPS/GEN/92
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II. QUALITY ASSURANCE (QA) SYSTEM
The System of Standardization of Agricultur al Products is derived from the Agricultural
Standard System and the National Standard System, and is based on the Decree of the Minister of
Agriculture No 303/94, and Presidential Decree No 13/1997 (replacing Presidential Decree
No 7/1989).
The System is divided into three sub-systems, namely the Sub-system of Standardization , the
Sub-system of Accreditation and the Sub-system  of Cooperation on Standardization. The enclosed
Diagram/Figure 1 shows the links between these sub-systems, the role of the QA System and its
objective. As the diagram clearly shows, the QA  System is structured around the mechanism of the
Sub-system of Accreditation.
The main function of the SubSystem of Standardization is to formulate the Indonesian
National Standard ( Standar Nasional Indonesia or SNI).  This is done through a consensus forum
composed of producers, consumer associations, universities, government institutions, central as well
as regional, etc. The various institutions or groupings concerned by the SNI include the government,
industrialists, associations, scientists and consumers.
In order to maintain food quality, the government has established standards based on quality,
nutrition value, and safety criteria. The food standard is mandatory for certain kinds of food, whether
they are processed or not. In accordance with Government Regulation No 15/1991 and Presidential
Decree No 12/1991, SNI is expressly stated as be ing a harmonized standard. Under SNI are also a
number of related  technical institutions, operating on the same consensus system as mentioned above,
whose task is to consider the requirements of health, safety, science and technological development.
Every two or three years or so, SNI is up-dated to accommodate  national or international market
demand for standards on a specific commodity. A revision of SNI can also take place for the purpose
of securing national food safety and human safety programs, and can extend to plants and animals. Inpractice, SNI is formulated in stages, initially on the basis of the local or national standards, which
can later be adapted to comply with internatio nal standards. Usually, regional standards such as
ASEAN standards or international standards re commended mainly by the Codex Alimentarius
Commission (CAC) are used as a reference in the formulation. Hence, through the process of the
harmonized SNI a single standard will gradually be achieved, with the domestic standard aligning
itself on the international standard.
The institutions dealing with the QA System are certification bodies (as, for instance, in the
case of quality systems and testing laboratories), as depicted on Diagram/Figure 1. These certification
bodies will issue certificates guaranteeing that the quality of the product meets the standard
requirement of the importing country or of the SNI. In order to be recognized as bona fide
certification bodies, the proposed bodies must first be accredited by the Agency of National Standards(formerly the Council of National Standards), in accordance with Presidential Decree No 13/1997.
Moreover, to achieve the necessary credibility, the certification bodies must be recognized by the
trading partners in terms of their system and the capability of their human resources. This recognition
can take place through the establishment of a mutual recognition arrangement. Both the private sector
and the government institutions are eligible to become certification bodies provided they can fulfillthe criteria required of a particular certification body. The objectivity and independence of the
certification body are probably the most important qualifying criteria.
As can be seen on Diagram/Figure 1, the role of the government is to assist the private sector
in developing its productivity and efficiency as well as in enhancing the quality of its products inorder to increase its competitiveness on the global market. Through these sub-systems, i.e.
standardization, accreditation and cooperation on standardization, the Ministry of Agriculture assists
the private sector in the form of: (a) formulating SNI, (b) building a QA system by establishing a
credible certification body through the accreditation process, and (c) socializing SPS measures.G/SPS/GEN/92
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Under the Sub-system of Cooperation on Standardization, a socialization program is
conducted to reach the institutions concerned, both public and private, and the private sector. This is
an information exercise which also provides the possibility to discuss the likely opportunities and
challenges which the private sector will face when confronted with a new standard or technical
regulation applied by a particular trading partner. Through this mechanism, businessmen canhopefully determine their strategy in  dealing with the business practices of their trading partners.
The Notification Body and Enquiry Point have important roles in receiving and disseminating
information concerning SPS measures such as standards and technical regulations from the CAC,
IPCC (International Plant Protection Convention), IOE (International Office for Epizootic) and other
members of the WTO. The function of the Notification Body concentrates mostly on the internal
process of digesting and analyzing emerging SPS measures. With the help of good coordinationbetween the institutions concerned and the private sector, the Notification Body can play an important
role in defining a suitably solid national position on the new standards applied by trading partners.
Furthermore, this solid position can provide valuable information to both policy-makers and
businessmen in determining their trading strategy with regard to international trade and trading
partners.
In order that the Standardization System on Agricultural Products can work properly, the
Indonesian government has appointed the Center for Standardization and Accreditation as the
institution responsible for the application of the system. Its responsibilities are set out in the  Decree
of the Minister of Agriculture No 303/1994. In addition, the Center for Standardization andAccreditation, the Agency for Agribusiness and the Center for Agricultural Quarantine under the
Secretariat General are designated as the notification body and the enquiry point respectively.
At present, the Ministry of Agriculture is trying to establish and strengthen a certification
body on quality systems based on HACCP and testing laboratories for, among others, residuepesticides, micro-biological contaminants, additives, and heavy metal content. The aim of this
initiative is to be able to meet the requirements of importing developed countries on fish and poultry
products. The products should be processed according to the HACCP quality system approach.  In
addition, some importing countries require a health certificate to ensure that the product is safe for
human consumption.
III. FOOD CONTROL SYSTEM
Food production for the domestic market
Food produced and distributed within the Indone sian territory must comply with the health
and safety requirements as well as with Ministry of Health Regulation No 329/76 on Food Production
and Distribution, and Ministry of Health Regu lation No 382/90 on Food Registration. Likewise,
imported food, like the food produced and distributed on the domestic market, must comply with theSNI and may not fall below the SNI.  In the event of a deviation from this rule occurring (e.g. the
product does not comply with the SNI or does not ha ve the mandatory SNI labeling certificate), it will
be subject to sanctions.
Exported food
The quality of exported food must not be lower than the SNI requirements or other standards
referred to and acknowledged. The exporter is respons ible for the quality of the exported products and
the Ministry of Industry and Trade controls the quality of exported food by issuing a Quality
Conformity Certificate or Product Certificate (for products not bearing the SNI marking, theCertificate of Quality constitutes an obligatory document for each Notification of Export Goods.) If
these prerequisites are not met, the product may be sanctioned with prohibition for export. Health
certificates are issued as required.G/SPS/GEN/92
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IV. HARMONIZATION
Harmonization in order to achieve an equivalency on technical standard regulations is
conducted through the Sub-system of Cooperation on Standardization, as mentioned above. The
success of the Indonesian agricultural sector with regard to  the application of the quality management
system based on the HACCP programs has been ack nowledged through a kind of Mutual Recognition
Arrangement with a number of importing countries, among others the European Union. In 1994, there
were 155 recognized fish industries on the quality management system and by 1998, this number had
risen to 175. Meanwhile, the same harmonization has been developed with Canada, based mainly on
GMP (Good Manufacturing Practices).
Cooperation on standardization with international organizations, conducted through
international bodies such as the Codex Alimentarius Commission (CAC), the InternationalOrganization for Standardization (ISO), the AS EAN Coordinating Committee for Standard Quality
(ACCSQ), the International Laboratory Accreditation Conference (ILAC), the Asia Pacific Economic
Cooperation (APEC), the ASEAN-Australia Ec onomic Cooperation Programs (AAECP) and
SPS/ASEAN, constitutes a forum for harmonizing standards and mutual recognition with a view to
facilitating trade in food. With the mutual recognition system, it is expected that exported productswill no longer face technical barriers at the point of entry and that they will be marketed directly,
without unnecessarily complicated bureaucratic procedures.
V. REGULATORY REFORM AND HARMONIZATION TOWARDS INTERNATIONAL
STANDARDS
The following is a list of “main” regulations considered under regulatory reform and
harmonization. Some of them have already been notified to the WTO.
1. Government Regulation (“Peraturan Pemerintah”) No 15/1991 states that there is no standard
but SNI.  Subsequently, other standards, such  as the Indonesian Trade Standard (SPI), the
Indonesian Industrial Standard (SII) or the Indonesian Agricultural Standard (SP) have been
set up; however, they are no longer applicable since the SNI, being the only harmonized
standard, must be treated as the only legal standard in Indonesia.
2. Presidential Decree No 12/1991 on the establ ishment and implementation of SNI, and the
control of that implementation. SNI has been implemented since 1 April 1994.
3. Law No 7/1994 on the Ratification of the WTO Agreement.
4. In 1996, the Government of Indonesia established the Food Act, which governs the
development and provision of food, notably with regard to the following:
- Food availability and safety, and the quality and nutrition requirements necessary to
the interest of human health
- Creating an honest and responsible trade in food
- Maintaining a food sufficiency level which is in accordance with the needs of the 
community.
This regulation deals amongst others with:
- Food safety
- Food quality and nutrition- Food labelling and advertising
- Importing and exporting food into and from Indonesia
- Responsibility of the food industry
- Food resilience
- Participation of the communityG/SPS/GEN/92
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- Criminal provisions
- Submission of problems and the task of assistance.
This regulation is considered as a form of the existing food Regulation on Maximum Residue
Limits (MRL). It constitutes a joint decree of the Ministers of Agriculture and of Health and isgenerally based on the International Standards.
5. Decree of the Minister of Agriculture No 40 5/96 on the Entry and Exit Points for the Media
Capable of Harboring Quarantineable Fish Pests and Diseases.
6. Establishment of an Enquiry Point and Notification Authority
- For the SPS Agreement:
Enquiry Point: Center for Agricultural Quarantine
Notification Authority: Center for Standardization and Accreditation, Agency for 
Agribusiness.
- For the TBT Agreement:
Enquiry Point and Notification Authority: National Standardization Agency (BSN)
VI. CONCLUSION
1. The QA System plays an important role in ensuring the successful application of the SPS
Agreement, and on international trade.
2. The role of the government, for its part, is to provide infrastructures such as a testing
laboratory and a certification body for the Quality System (based on HACCP, ISO,etc.) made
available to the private sector. A credible certification body has to be developed in order toenhance trade efficiency with trading partners.
3. Cooperation at government level is necessary between exporting and importing countries in
order to achieve mutual recognition of credible certification bodies for the sake of efficient
trade activities..
4. International bodies such as the WTO, Codex Alimentarius, IOE, IPCC, etc. shall be required
to provide more technical assistance and training to strengthen the capability of testing
laboratories and other certification bodies. They have also offered developing countries the
necessary guidance in establishing a proper system of standardization.
Jakarta, 28 June 1998
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