JAKARTA. Indonesian food exporters are struggling to expand the exports due to the protective regulations. Some countries operate protection over food import by applying regulations on labeling and certificate of country of origin.
Recently, Chinese Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) has ruled that the imports have to be accompanied with official certificate from authorized institution from the country of origin.
The new regulation, which was released in April 2016, has 18 months of transition period and will be mandatory starting from 1 October 2017. Aside of label and certificate, the regulation also includes the requirement for food producers to provide information on nutrition composition, country of origin, ingredients composition, and durability of their products, as well as the warning about specific substances in the products that may cause allergy. “The new regulation has interrupted our exports”, said General Chairman of All Indonesian Food and Beverage Business Association (GAPPMI) Adhi S Lukman told KONTAN on Friday (21/10).
According to Adhi, the producers will suspend export to China during three months period in order to adapt with the new regulation.
In addition to reduction in export, the policy will increase production costs for labeling. Aside of China, Germany will apply similar regulation starting from December 2016.
The United States of America (the US) food security authority has gradually applied the similar regulation earlier on 16 July 2016. Data from Ministry of Trade of the US show that Indonesian food export to the US comprised 18% or US$3.41 billion of US$19.5 billion of total Indonesian export to the country in 2015. Meanwhile, Australia had applied the similar regulation since the middle of 2016.
Some exporters have not yet commented in responding to the new regulation. Marketing Director of PT Tirta Fresindo Jaya Riko Sistanto refused to make comment, on the grounds that he has not yet understood the regulation. Director of PT Siantar Top Tbk Purn Amin also refused to make comment, since he has not received yet report related to export constraints. Meanwhile, Corporate Secretary of PT Industri Jamu dan Farmasi Sido Muncul Tbk Tiur Simamora claimed that to date the export activities of the company still run smoothly.
(Muhammad Farid/Translator)
