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A study conducted by DFC S.A.U for the European Union
Indonesia’s Export Quality Infrastructure
i
PREFACE 1
EXECUTIVESUMMARY 2
I.CONTEXT 6
I.1MacroeconomicPerformanceandtheTradeChallenge 6
I.2.TechnicalRegulationsAbroadandMarketAccessforExports 7
I.3.VoluntaryInternationalStandardsandTrade 8
I.4.TheIncreasingLinkageofVoluntaryStandardsandTechnicalRegulations 9
I.5.PrivateStandardsandMarketAccessforExports 9
I.6EQIandtheFutureofTrade 10
II.OBJECTIVES 12
III.ACTIVITIESANDMETHODOLOGY 14
III.1Activities 14
III.2Methodology 15
IV.EXPERIENCEOFOTHERASEANCOUNTRIES 17
IV.1ChoiceofCountries 17
IV.2TheirEconomicContext 18
IV.3.CoreOverallFindingsonEQIinSingapore,MalaysiaandThailand 19
Table of ConTenTs
Table of Contents
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Unionii
V.MAPPINGOFTHEINDONESIANEQIINFRASTRUCTURE 23
V.1.TheFeaturesofaSoundEQI 23
V.2.GovernmentStructureandEQI 24
V.3QualityInfrastructure 25
V.3.1Metrology 28
V.3.1.1Scientific&TechnicalMetrology:AnInstitutionalAssessment 30
V.3.1.2LegalMetrology:AnInstitutionalAssessment 31
V.3.2Standardisation 32
V.3.2.1Standardisation:TheInstitutionalSituationinIndonesia 33
V.3.2.2TheStandardsInstitutions 34
V.3.2.3TheRegulatoryBodies 34
V.3.3TestingandQuality:ConformityAssessment 40
V.3.3.1TestingandCalibrationLaboratories:PublicSectorInstitutions 40
V.3.3.2Testing:PrivateSectorEntities 42
V.3.3.3Inspection:PublicSectorInstitutions 43
V.3.3.4Inspection:PrivateSectorInstitutions 44
V.3.3.5Certification–certificationofconformityofproducts
orsystemswithstandardsortechnicalregulations 44
V.3.3.6Certification:PublicSectorInstitutions 44
V.3.3.7Certification:PrivateSectorInstitutions 45
V.3.3.8ObservationsonTesting,InspectionandCertification: 45
V.3.4Accreditation 46
VI.ASSESSINGTHEEQISYSTEM 50
VI.1Factorsbehindtheproblems 50
VII.VISION 52
VII.1TheComplianceChallenges–InternationalandEURegulations 52
A study conducted by DFC S.A.U for the European Union
Indonesia’s Export Quality Infrastructure
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VII.2TheVisionforIndonesia’sEQI 53
VII.3WhatTheComplianceSystemMustHave 53
VII.4Traceability:TheFundamentalFeatureofanEfficientEQISystem 54
VII.5TheFourKeyDimensionsoftheVision 54
VII.5.1Traceability 55
VII.5.2Information 55
VII.5.3Competence 56
VII.5.4PrivateSectorInvolvement 56
VII.5.5LinkingtheDimensionsoftheVision 57
VIII.ROADMAP 58
VIII.1.ImplementingChange 59
VIII.1.1RoutestoEfficiencyIncrease 59
VIII.1.2TheActorsforChange 60
VIII.2.ToolsforChange:AnEQIInventoryandInformationManagementSystem 61
VIII.2.2HowIndonesianInstitutionsCanCreateTheInformationSystem 62
VIII.2.3.ProductsOfTheInformationSystem 63
VIII.3.TraceabilityInMetrology 65
VIII.3.1StrategicManagement 65
VIII.3.2.HowIndonesianQIInstitutionsCanImproveTraceabilityInMetrology 65
VIII.4.HowIndonesianQIInstitutionsImproveTraceabilityInCA&ValueChain 66
VIII.5.HowIndonesianQIInstitutionsImproveandEnsureCompetence 66
VIII.6.HowQIInstitutionsIncreasePrivateSectorInvolvement 67
IX.MONITORINGCHANGE 68
X.CONCLUSIONSANDRECOMMENDATIONS 70
GLOSSARY 74
TermsandInstitutionsrelevantfortheQualityInfrastructure 74
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Unioniv
list of Tables and figures
lIsT of Tables anD fIGURes
Figure1 :Fourchains:Publicandprivatesectorresponsibilities 23
Figure2 :Qualityinfrastructure 26
Figure3 :Qualityinfrastructure 27
Figure4 :Metrology:Whyitmatters? 29
Figure5 :Metrology:Functionstobeperformedandor/coordinated 29
Figure6 :Standardizationandtechnicalregulations 33
Figure7 :MSTQ-StandardizationinIndonesia 33
Figure8 :MSTQ-Technicalregulatoryauthorities 35
Figure9 :MSTQ-Qualityaccreditation&certification 47
Figure10:Challenges-international&EUregulations 52
Figure11:VisionforIndonesia’sEQI 53
Figure12:Whatthecompliancesystemmusthave? 53
Figure13:Traceabilityinthevaluechain 54
Figure14:Whattheroadmapcovers 58
Figure15:AchievingEQIefficiencyduringpoliticaltransition 59
Figure16:Inventoryinformationsystem 62
Figure17:Productsoftheinformationsystem 63
Figure18:Monitoringchange 68
Table1 :SWOTAnalysisoftheEQISystem 50
Table2 :Traceability:ThebasickeyforEQI 55
Table3 :Information:ThemissinglinkinEQI 55
Table4 :Competence:Thekeyforconfidence 56
Table5 :Involvement:Themissinglinktotheusers 57
Table6 :Objectivesarelinked 57
Table7 :Inventory-collectinformation 61
A study conducted by DFC S.A.U for the European Union
Indonesia’s Export Quality Infrastructure
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ACCSQ ASEANConsultativeCommitteeonStandardsandQuality
APEC Asia-PacificEconomicCooperation
ASEAN AssociationofSouthEastAsianNations
AusAid AustralianAidAgency
AVA Agri-FoodandVeterinaryAuthority(Singapore)
BLA BureauofLaboratoryAccreditation(Thailand)
B4T CentreforMaterialsandTechnicalProducts,Bandung
BBIA CentreforAgro-Industries,Bogor
BBK CentreforCeramics,Bandung
BBKK CentreforChemicalsandPackaging,Jakarta
BBPK CentreforPulpandPaper,Bandung
BBT CentreforTextilesIndustry,Bandung
BPOM AgencyforFoodandDrugs
BPPT NationalAgencyforAssessmentandAppliedTechnologies
BOT BoardofTrade(Thailand)
BSN NationalStandardizationAgency
CASE ConsumersAssociationofSingapore
CIDA CanadianInternationalDevelopmentAgency
CSIS CentreforStrategicandInternationalStudies,Jakarta
CSP CountryStrategyPaper
DS DepartmentofStandards(Malaysia)
EUD EUDelegationinJakarta
EDB EconomicDevelopmentBoard(Singapore)
ETAT EuropeanTechnicalAssistanceTeam
EU EuropeanUnion
lIsT of abbRevIaTIons
list of abbreviations
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Unionvi
EuroCham EuropeanChamberofCommerceinIndonesia
EQI ExportQualityInfrastructure
FDI ForeignDirectInvestment
FTA FreeTradeAgreement
GATS GeneralAgreementonTradeinServices
GATT GeneralAgreementonTariffsandTrade
GDP GrossDomesticProduct
GoI GovernmentofIndonesia
HDC HalalDevelopmentCorporation(Malaysia)
HVA HighValueAdded
IEC InternationalElectricalCommission
IMF InternationalMonetaryFund
IMs ImplementationManagers
ITC InternationalTradeCooperationDepartmentofMoT
JICA JapanInternationalCooperationAgency
KADIN IndonesianChamberofCommerceandIndustry
KAN NationalAccreditationCommittee
KIM-LIPI CenterforCalibration,InstrumentationandMetrology
LIPI IndonesianInstituteofSciences
LFM LogicalFrameworkMatrix
MATRADE MalaysiaTradeOrganisation
MDGs MillenniumDevelopmentGoals
MIDA MalaysiaIndustrialDevelopmentAuthority
MITI MinistryofInternationalTradeandIndustry
MENRISTEK MinistryforResearchandTechnology
MoA MinistryofAgriculture
MoE MinistryofEnvironment
MoF MinistryofFinance
A study conducted by DFC S.A.U for the European Union
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MoFo MinistryofForestry
MoH MinistryofHealth
MoI MinistryofIndustry
MoMP MinistryofManpower
MMAF MinistryofMarineAffairsandFisheries
MoPW MinistryofPublicWorks
MoT MinistryofTrade
MoTr MinistryofTransportation
MOSTI MinistryofScience,TechnologyandInnovation(Malaysia)
MRA MutualRecognitionAgreement
MS MalaysiaStandard
MST MetrologySocietyofThailand
MSTQ Metrology,Standards,TestingandQuality
NAFED NationalAgencyforExportDevelopment
NIP NationalIndicativeProgramme
NEM NewEconomicModel(Malaysia)
NIMT NationalInstituteofMetrologyThailand
NMSP NationalMetrologyStrategicPlan(Thailand)
OIC OrganisationoftheIslamicConference
OWM OfficeofWeightsandMeasures(Thailand)
PMC ProjectManagementCycle
PTB PhysikalischTechnischeBundesanstalt,Germany
QI QualityInfrastructure
RIA RegulatoryImpactAssessment
SIRIM MalaysiaStandardAgency
SME SmallandMediumsizedEnterprises
SPRING SingaporeStandardsAgency
SPS SanitaryandPhytosanitaryMeasures
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Unionviii
SQB SIRIMQASBerhad
SS SingaporeStandard
STE Short-termExpert
TBT TechnicalBarrierstoTrade
ToR TermsofReference
TREDA TradeResearchandDevelopmentAgency,MoT
TEEAM TheElectricalAndElectronicAssociationofMalaysia
TIC Testing,Inspection,Certification
TISI ThailandIndustrialStandardsInstitute
TR TechnicalRegulations
TSP EU-IndonesiaTradeSupportProgramme
USAID UnitedStatesAidAgency
WTO WorldTradeOrganization
A study conducted by DFC S.A.U for the European Union
Indonesia’s Export Quality Infrastructure
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ThisPapersummarisestheresultsofaprojectconductedintheperiodAugust–December2010.
TheworkwassupportedbytheEuropeanUnion.Thebackgrounddocumentsproducedduringthe
projectcanbeobtainedfromtheTeamLeader,Dr.PeterO’Brien,E-mail:eqindon@gmail.com.
PRefaCe
Preface
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Union2
Indonesiaisinaperiodofrapideconomicgrowthinwhichexportsplayamajorrole.Thecountry
seekstoupgradethevalueaddedofexports,expandtherangeofexportsintomoresophisticated
products,anddiversify intomanyforeignmarkets.Theseaimsimplythat itmusthaveawell
functioningQualityInfrastructure(QI)whichcanensurethattheprocessesandproductswhich
thecountrycanexportareabletocomplywiththeincreasingnumberofTechnicalBarriersto
Trade(TBT)whichcanmakeentryintoexternalmarketsdifficultorevenimpossible.
Animpressiverangeoftechnicallaboratoriesandfacilities,mainlythoughnotentirelylocatedin
thepublicsector,alreadyexist.Similarly,therearealargenumberofexperiencedanddedicated
professionalsworkingintheseQIinstitutions.Fundingforthem,whilealwayssubjecttothe
usuallimitations,isonthewholequitegood.Technicalhelpfromarangeofforeigndevelopment
partners,inAsiaandinEurope,hasbeenprovidedovermanyyearsandcontinuestoencourage
domesticimprovements.Yettheinstitutionsdonotfunctionasasystem.Eachtendstooperate
inisolation,withscarceevidenceofsharingofresponsibilities,policymakingandoperations.
Furthermore,theQIinstitutionshavebutweaklinkswiththeprivatesector,whetherthatsector
isconsideredasasupplierofQIservicesorasademanderofthem.
Theresultisthat,althoughinprincipletheIndonesianQIcouldmakeamajorcontribution,it
isfailingtodoso.Seriousproblemsexistintermsof:confusedauthoritiesandresponsibilities;
pooruseoftheconsiderableassetswhichthecountrypossesses;ongoingcompetitionamong
institutions,frequentlyexacerbatedbyeffortstogaininfluenceeveninareaswhereaninstitution
doesnothavespecifictechnicalcompetence;andanapproachtoplanningwhichcontainsan
exeCUTIve sUmmaRy
executive summary
A study conducted by DFC S.A.U for the European Union
Indonesia’s Export Quality Infrastructure
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unhealthymixofinflatedexpectationsandinsufficientattentiontothedynamicofinternational
changesinthetraderegulatoryenvironment.
TheurgencyofmakingefficiencyimprovementstotheQIstructure,andthusrealisingthe
substantialbenefitswhichcomefromharnessingthesynergiesinherentinawellfunctioning
system, isdue to the internalandexternaldynamicsof thecurrent situationof Indonesia.
Internally, the exceptionally important moves towards much greater autonomy and
decentralisationimplysubstantialrisksthat,atleastduringwhatislikelytobeaprolonged
transitionphase,therewillbesignificantproblemsinensuringthattheQInetworkoperates
eventoitscurrent level.Externally,IndonesiaisfacedwiththefastmovingTBTfrontier,
the very strong competition in its export markets (especially from some of itsASEAN
neighbours),andthecommitmentsandrequirements,allofwhicharetimebound,intowhich
ithasenteredinASEAN,intheWTO,andtoanincreasingdegreethroughbilateraltradeand
cooperationarrangements.
Inshort,thecountryhasnowenteredaperiodofmajoropportunitiesbutalsoofmajorrisks.
Standingstill,orcontinuing“businessasusual”,isnotanoption.Eitheraconcertedeffortis
madetoregisterimprovementsinlinewithagreedpoliciesandapproaches,orthereisastrong
likelihoodthatthingswillgobackwards.
Thefocusofthepaperisonhowtomakethoseimprovements.Morespecificallystill,thefocus
isonwhatcanbedonebytheQIinstitutionsthemselves,withoutwaitingforhighlevelpolitical
andpolicydecisions.Anumberofthosedecisionsareinfactverynecessary.Indonesiahasno
coherenttradepolicy;ithasnoqualitypolicy;ithasconflictinginstitutionalmandates,some
ofwhichcanonlybedealtwiththroughhighleveldecisions;ithascivilserviceregulations
whichareinimicaltomakingthebestallocationsoftechnicalstaff;ithaspricingpoliciesforthe
provisionofQIserviceswhichsignificantlylimitthepossibilitiesforQIinstitutionstodevelop
thescopeoftheirwork.
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Union4
Theneedforsuchdecisionsishighlightedbythechangeprocesseswhichhavetakenplace,
over the last several years, in some of Indonesia’sASEAN neighbours (and competitors).
CountriessuchasThailand,MalaysiaandSingapore,haverecognisedthat totalengagement
with trade and investment (including significant foreign investment) is a powerful way of
reducingpovertyandenhancingincomesacrosstheboard.ThesecountrieshaveoptedforQI
structureswheremaximumuse ismade of broad public and private partnerships, inwhich
theentitiesareencouragedtooffertheserviceswhichtheyarebestsuitedtoprovide,andto
offer thematcompetitivepricesanddeliveryconditions.Corporatisationofpreviouslystate
enterprises,aprocess throughwhichsomepublicownershipandcontrolcanberetained(to
ensurethatdesirablesocialgoalsaremet),whilecreatingthespaceformanagementinlinewith
fullefficiencyrequirements,hasbeensystematicallyadopted.
Ministriesinthesecountries,whilestillhavingsomeregulatoryfunctions(thoughthesetooare
moreandmoreinthehandsofsemipublicbodies),havefocusedonprovidingpolicyandoversight
for thecorporatisedentities.There is, inotherwords,substantialseparationofpolicymakers,
regulatorsandoperators(QIserviceproviders).Theseshiftshavebeenmadewhileplacingstrong
emphasisondevelopingrelationswiththeprivatesector,sothatitplaysthefullestpartpossible
inthesystem.Eachcountry,ofcourse,hashaditsownproblemstomeet,eachcountryhasbeen
followingthepathforwelloveradecade,andineveryinstancethereremainsmuchtobedone.
Butthecriticalpointisthatavisionexistsofastructurewhereallpartiesareparticipatingand
collaboratingtothefull.SuccessfulQIisacollaborativeventure,notacompetitivestruggle.
ThepaperarguesthattheQIinstitutionscansetthemselvestargetswhichstemfromthefundamental
technicalneedtoprovidetraceability.Toachievetraceability,andthetechnicalcompetencewhich
mustunderpinit,theinstitutionsmustbegintoshareinformationatalllevels.Throughacarefully
designedandimplementedprocessofinformationsharing,theinstitutionswillbegintoworktogether
toenhancesystemefficiency.Asthatincreases,withprivatesectorQIserviceprovidersparticipating
intheprocess,therealinvestmentneedsofthesystemwillbecomeapparent.
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Aswithanyexaminationofasystem,theinformationsharingwillrevealwherethe“blockage
points”are,andsuggesthowtheycanbeovercome.Informationproductscanlikewisebemade
available through thisprocess,productsofdirectvalue to Indonesianprivateproducersand
exporters,aswellaspotentiallytoforeignbuyersandimporters.Theinformationcanalsotake
Indonesianenterprisesintoastillmorechallengingfield,thatofresearchanddevelopment.Asa
huge,naturalresourcericheconomy,whichiscurrentlyobtainingexceptionallyhighpricesfor
itsexportsofrawmaterials,Indonesiahastraditionallynotbeenstronglycommittedtoresearch
anddevelopment.Inthefuture,thatwillalmostcertainlyhavetoalter.Theinformationbase
onwhichinnovativeactivitiescanbedevelopedwilldrawonmanysources–andoneofthem
shouldbe the information in theQI system.After all, standards (mandatory andvoluntary)
embodythelatestthinkingonwhattechnicalcriteriaprocessesandproductsshouldembody.
Hencethatinformationshouldbepubliclyavailable,andutilisedtothefull.
Noneofwhatisproposedhereisundertakenforitsownsake.QIshouldnotbeaclosedworld
ruledbytechnicians.AQIexiststoprovideaservice,whichultimatelyistheretoencouragethe
growthanddevelopmentoftheeconomyofIndonesiaandthewelfareofitspeople.Themajority
offirmsinthecountryaredomesticallyowned,smallandlimitedintheirresources.Butthese
firmsareoftenconnectedtolargerentities,throughsupplychainsandsubcontractingnetworks.
Traceabilityrequiresthatthesefirmsalsocanprovidetheproperstandardofproductsandthat
theirproductionprocessesareconsistentwiththenorms.Inthissense,theQIinstitutionshave
thepossibilitytomakeapowerfulcontributiontothewelfareofIndonesiaandtoitsprosperous
future.Thetimetoseizethatpossibilityisnow.
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Union6
I.1 MacroeconomicPerformanceandtheTradeChallenge
Indonesiahasenteredaperiodofrapideconomicgrowth.Theprojectedrateofexpansion,
asestimatedintheAugust2010DraftBudgetStatementfor2011,is5.8%for2010,with
accelerationinsubsequentyearsto6.3%in2011,upto6.9%in2012,7.4%in2013,and
7.7%in2014.Theseexpectationsareunderpinnedbyarecentimprovementinthebalance
ofpaymentsandforeignexchangereserves(whichnowstandattheequivalentofsome
6-7monthsofimportsatnormalrates),andarelativelystableexchangerateasmeasured
against a basket of relevant currencies.Bank Indonesia, the country’sCentralBank, is
committedtomaintainingstabilityinboththeexchangerateandtherateofinterestover
thecomingyears.
In order to achieve and sustain this impressive performance, Indonesiamust strengthen its
situationwithregardtoregionalandinternationaltrade.Currently,theratiooftradetoGDPis
approximately25%,whichisnoticeablylowerthanthefigureformostotherASEANcountries.
Moreover, the composition of that trade is strongly biased towards primary or relatively
unprocessed(lowvalueadded)products.Inthoseproducts,Indonesiaissubjecttopowerful
competitioninallmarkets(EU,ASEAN,Japan,NorthAmericaandothers)fromseveralfellow
ASEANmembersandotherAsiancountries.Forexample:inagriculturalproducts,including
foodandfisheries,thereiscompetitionfromThailand,Vietnam,Indiaandothers;intextiles,
Thailand, China, Korea and India are important international traders; in clothing,Vietnam
andPhilippines are significant;while inmanufacturedproducts, suchas telecommunication
equipment,Malaysia,Thailand,China,JapanandKoreaareallpowerfulplayers.
I. ConTexT
Context
A study conducted by DFC S.A.U for the European Union
Indonesia’s Export Quality Infrastructure
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Indonesiaisthereforefacedwithasignificanttradechallengeifitistosustainitsfastoverall
economicgrowth.Thattradechallenge,however, isbynomeanssimplyamatterofoverall
volumeoftrade.Itisalso,andstillmoreimportantly,amatterofthequalityandstandardsof
goods tobeexported.Allof thecountriescitedabove,namely theASEANandotherAsian
competitorsofIndonesia,areengagedtoagreateroflesserextentinconstantupgradingofthe
valueaddedandqualitydimensionsoftheirexports.Thatupgradingoccursfortworeasons.One
isthatthehigherthevaluedaddedcomponentofexports,thegreaterthenetreturnsfromthose
exports.Thesecondreasonisthatrelentlesslyrisingstandardsinexportmarkets,especiallythe
EUandotherOECDmembers,directlyandindirectlyobligetraderstoimprovethequalityof
whattheyexport.
I.2. TechnicalRegulationsAbroadandMarketAccessforExports
Inmanyproductfields,therearelegallymandatoryTechnicalRegulations(TR)whichmustbe
metiftheproductsareeventogainentryintothemarkets.TheseTRexistinordertoprotect
thehealthof thepopulation in the importingmarket, public safety, security and thenatural
environment.Providedtheymeetcertainscientificconditionsandaredesignedinwayswhich
seektominimisetradeimpacts,suchTRareperfectlyacceptableundertheWTOagreements
onTechnicalBarriers toTrade (TBT)andSanitaryandPhyto-Sanitary (SPS)arrangements.
Hence,beforeanIndonesianmadeproductcangoonsaleinforeignmarkets,itmustbecertified
tobeinconformitywiththeapplicableTRinthosemarkets.Thatcertificationmustbedoneby
entitiesofrecognisedimpartialityandcompetence.Theseentities,inturn,mustbeaccreditedto
performtheirfunctionsbybodieswhichthemselvesmeetaseriesofinternationallyrecognised
conditions.
Itisapparent,therefore,thattherehastobeinplaceinIndonesiaasystemwhichcanprovide
thesetechnicalservicestotherequiredtechnicalandobjectivitylevels.OvertheyearsIndonesia
has of course established, essentially via theprovisionof publiclyowned services, awide
rangingquality infrastructure (QI)designedessentially tomeet internalneeds.Thoseneeds
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Union8
includeIndonesia’sowninternalTRandanumberofelementsrelatedtostandardisingproducts
andservicessoldinthedomesticmarket.Astheworld’sfourthlargestcountry,thatdomestic
marketorienteddevelopmentprocess inQI isperfectlynormalandnecessary.Butsincethe
1990s, most of the world’s largest developing countries (China, India, Brazil) which had
similarlycreatedsystemswhichweredomesticmarketoriented,havebeenraisingtheprofile
ofinternationaltradeintheireconomies,andthusbegunadaptingtheirQIsuchthatitbecomes
asystemwhichservesthegrowinginternationaldimensionsoftheireconomies.Indonesiais
nowengaginginsuchadaptationofitsownsystemtowardsaninternationallycompatibleone.
ThatsystemcanbereferredtoasIndonesia’sExportQualityInfrastructure(EQI).
I.3. VoluntaryInternationalStandardsandTrade
IndevelopinganEQI,TRarenottheonlymajorhurdlewhichIndonesia’sexportsmust
overcome.To an increasing extent, and acrossmore or less thewhole range of traded
goodsandservices,exportsshouldseektomeetvoluntaryinternationalstandards.These
arenotlegallybinding,buttheyarecommerciallycritical.Thesestandards,whichapply
notonlytoactualproductsmadeandservicesprovidedbutalsotomanagementstructures
used toconductabusiness,aresetup through transparentprocesses inwhich technical
expertsfrommanycountriesworktogetherinordertoformulateperformanceconditions
andcharacteristicswhichproductsandservicesshouldmeetinordertoprovidethemost
suitablecustomersatisfaction.
The leading bodies in which standards formulation takes place include the International
Standards Organisation (ISO), the International Electrical Commission (IEC), the Codex
AlimentariusoftheFAOandWHO,aswellasotherentities.Indonesiaisrepresentedinthem
byappropriategovernmentMinistriesandpersonnel.Ineverycasetheaimisfortheretobefull
consensusamongallpartiesonthenatureofthestandard,althoughtherearesomeinstances
where,usuallyforspecialtechnicalreasons,oneormorecountriesmayreserveitspositionwith
regardtotheproposedstandard.
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I.4. TheIncreasingLinkageofVoluntaryStandardsandTechnicalRegulations
Toanincreasingdegree,thereisintegrationofsuchstandardswithTR.Inotherwords,TR
themselvesfrequentlymakereferencetointernationalstandardswhichapplyinthefield
concerned.Inthissense,therefore,whatisinastandardeffectivelybecomesobligatory
becauseitisincorporatedinaTR.Indonesiaandallothercountriesarethusinasituation
where,toagrowingdegree,TRandinternationalstandardsmustbelookedatasintegrally
relatedpartsofthesamewhole.TheEQI,andimprovementofit,mustbeviewedinthis
perspective.
I.5. PrivateStandardsandMarketAccessforExports
In the rapidly changingworld of quality, there is a third dimension, in addition toTR and
international standards,which nowadays is acquiring ever greater importance, especially in
fieldssuchasfoodproducts,informationtechnologyandsomeothers.Thatdimensionisusually
calledPrivateStandards.Thesearestandardswhicharenotestablishedintheforumsofthe
internationalentitiesmentionedabove,butinsteadareformulatedbygroupingsofimportant
producersand traders in specificfields.Thestandardsarecalled“Private”because theyare
notworkedoutthrough,andaccordingto,theprocessessetintheinternationalbodies.These
standardsareofcoursevoluntaryandareperfectlylegal.Theymatterbecausethegroupswhich
establishthemoftenincludemajorinternationalwholesalebuyers,andmajorretailchainsin
keyconsumermarkets.Thisisparticularlyclearinanumberofareasoffoodproducts,clothing,
electronics,furnitureandelsewhere.
Amoment’sreflectionsuggeststhat,unlessanexporteralsomeetsthestandardswhichthese
buyersconsiderimportant,thepracticalchancesofsuccessfulexportarelikelytobesmall–
eventhoughallapplicableTRandinternationalstandardshavebeenmet.Thisisbecauseactual
accesstothemarketinganddistributionchainsinsideleadingmarketsisverydifficulttoobtain
unlesstheexporterisperceivedbythekeybuyersasmeetingtheirstandards.Theprospectsof
enteringmarketsthroughsomesmall“independent”buyersareinpracticeoftenminimal.
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Union10
ForcompaniesinIndonesiawhichareaffiliatesofmultinationalenterprises,privatestandards
mightnotrepresentanyparticularproblem.Giventhatthemultinationalenterprisemayitself
bepartofgroupssettingprivatestandards,theaffiliateswillautomaticallymeetthemthrough
theapplicationofthemultinational’sowncorporatequalitypolicy.ButforIndonesianowned
firms, thechallengewillbe fargreater. It follows thatanEQIsystem, if it is tooffera full
rangeoftoplevelservicestousers(essentiallyIndonesianfirms),mustalsokeeptheexpansion
ofprivate standards inmind.This is additionally so since, over time, certainof theprivate
standardsmaywellcometobepartofinternationalstandards.
I.6 EQIandtheFutureofTrade
Asitentersaperiodofexceptionaleconomicgrowth,Indonesiaisthereforefacedwithamajor
requirementwithregardtointernationaltrade.Itmustsimultaneouslyexpandtotaltrade,raise
the value added element in that trade, and be equipped to provide evermore sophisticated
support services inEQI tocompaniesproducing in thecountry.Thoseservicesmustbeput
on an equivalent footing to, and be consistentwith, the standards employed in top quality
markets.A successful response to that challenge calls for a concerted effort encompassing
technical improvements, managerial improvements, capacity building, resource allocation
improvements, andbetter systemicgovernance.Thesechangeswill almostcertainly require
underpinning frommodifications to regulatory systems in Indonesia, a higher profile being
giventoawarenessbuildingabout“qualityculture”,andenhancedcomplementaritiesofpublic
andprivateparticipationinEQI.
Thesearedauntingchallenges.InsuchalargecountryasIndonesia,wherefederalandprovincial
governmentbodieshavevaryingjurisdictions,effectiveresponsetothosechallengesimplies
acarefulprocessofconsensusbuildingwhichalmost certainlycan takeplaceonlyoveran
extendedperiodoftime.Sequencingofactionsneedstobedonesuchthatthemorepressing
andurgenttradedemandsaremet,whileappropriatebalancesinthesystemaremaintained.
Theaccumulationofskills,bothforindividualinstitutionsandatthesystemiclevel,canoccur
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onlyifthereissufficientstabilityofinstitutionalmandatesandstaffing.Moreover,changesin
EQIinIndonesiaitselfinevitablyaretosomedegreeconditionedbychangesinASEAN,and
internationally(inexportmarketssuchastheEU,andrelevanttradebodiessuchasWTO).
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Union12
The overall objective of the projectwas to contribute to a further integration of Indonesia
intotheinternationaltradesystem,throughtheupgradingofIndonesia’sEQIsystemsothatit
becomescompliantwithinternationalstandards.Thespecificobjectivesofthestudywere:
• toanalyse the institutionalarrangements related to Indonesia’sEQIsystemand the
decisionmakingprocessesleadingtotradepoliciesinthisarea.
• toproposeavisionforanimprovedIndonesianEQIsystem,andastrategicroadmap
toreachit,inconsultationwithdifferentstakeholders.
• tomobilisestakeholdersintotheendorsementofthevisionandroadmap.
The studywas in no sense (technical, managerial, financial, social responsibility) an audit
ofindividualinstitutions.Itwasasystemfocusedanalysisseekingtoassistinthesearchfor
overall improvements in Indonesia’sEQI. It sought to locategaps, duplication,weaknesses
ofcoordination,andothersystemicissuesinEQI.Ittriedtoseewhetherthereareany“nerve
points”,orcriticalobstacles,which,ifovercome,couldleadtosignificantpositiveimpactson
systemicefficiency,betterutilisationofthesystembytraders,andontoimprovedexportsand
exportearnings.
Inmostsystems,thereareelementswhichmaybelessobviouslypresentbutmayinfacthave
apowerfuleffectontheoperationandorientationofthesystems.Those“latent”actorsmay
includeotherkeyMinistries,suchastheMinistryofFinance,keypolicymakingstructures,
especiallywithregardtotradepolicies,andofcoursethepressures(andoftenpositiveincentives
forimprovements)whichcomefromIndonesia’sactivemembershipinregional(ASEAN)and
II. objeCTIves
objectives
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international(forexample,WTO)organisations.Hence,anyattempttograspwhatthesystem
actuallylookslikeanddiscoverhowitinfactfunctions(asprerequisitesforarrivingatsensible
andrealisticpathsofimprovement),musttakethisbroaderperspectiveofwhattheIndonesian
EQIis.Theprojecttriedtomakeasmuchprogressaspossibleinthisdirectionalso.
Theprocessofmobilisingstakeholderswillalmostcertainlybegradual–meaningspreadover
asignificanttimeperiod.Itisnecessaryinordertorefineandmaturethefindingsofthisproject.
Endorsementitselfwillcomelater,asaproductofaconsensusbuildingeffortwhichshouldbe
continued.Atthatlaterstage,EQIwouldhopefullyalsohaveahigherprofileintheeconomic
arena,andperhapsreceivebackingattoppoliticallevels.
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III.1 Activities
Thestudywasconductedthroughaseriesofsteps,eachofwhichculminatedinapresentation
ofinformationobtained,analysisconducted,andproposalsforthenextphases.
Step One: Institutional Mapping and Gap Analysis
ThisfocusedonanassessmentoftheinstitutionsinvolvedintheEQIandoftherelationships
amongthem.
Theoverallmapwasconceivedtocontainfourprincipalkindsofinstitutions:
• IndonesianPublicServiceProviders.
• IndonesianPrivateentities(whichincludebothserviceprovidersandbusinessfirms
andassociationswhichusetheEQIservices).
• Regionalandinternationalinstitutionswhichseemtoplayanactiverolewithregard
tosomeaspectsofIndonesia’sEQI.
• Externaldonorsandtechnicalassistanceserviceproviders,agroupinginwhichtheEU
isincluded.
Withregardtogovernmentministries,thereareoftenseveralrelevantdepartments,orpartsof
theinstitution,whichoccupyimportantrolesinthesystem.Hencethetotalnumberofactors
onthemapismorethanappearsjustfromacountofinstitutions.Inpractice,thetotalnumber
extendstowellabove50.
III. aCTIvITIes anD meThoDoloGy
activities and methodology
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Step Two: Vision for Improvement
ThatVisionwasdesignedbasedontheemergingresultsfromtheinstitutionalmappingandgap
analysis,theproposalsandideasbeingreceivedfromthepersonsandinstitutionsinterviewed,
theinsightsgleanedfromthefieldvisits tootherASEANcountriesandrelatedcomparative
workandtheassessmentsofwhatwouldrepresentarealistic,achievableandvaluablesetof
targetsatwhichtheupgradingprocesscouldaim.
Step Three: Roadmap for Change
TheRoadmapseekstospelloutthevariousmilestonesthatwillhavetobeachievedbydefined
points in time and sets out how thesemilestones are to bemet, including the institutional,
policy,financialandotherpossibleimplicationsoftheprocess.
III.2 Methodology
Theworkreliedprimarilyonacombinationof:
• interviewswithselectedinstitutions(publicandprivate,nationalandinternational)in
IndonesiaandsomeotherASEANcountries.
• website research directed at supplementing the information base (especially with
regardtomanytechnicaldetailsconcerningTRandstandardsinmajorexportmarkets
affectingIndonesianfirms,practicesandprocessestoupgradeEQIwhicharebeing
followed in other countries, and details of technical assistance programmes being
managedandsupportedbydonorsotherthantheEU).
• analyticstudieswhichshedlightonthepossiblecostsandlikelyreturnsfromimproving
EQI.
• three workshops that were conducted with Indonesian stakeholders of various
Government Institutions with the aim to discuss and consolidate the findings and
conclusionsinaprocessorientedmanner.Thefirstworkshopfocusedonthemapping,
thesecondonthevisionandthethirdontheroadmapforIndonesia’sEQI.
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Inthetimeavailable,comprehensivebenchmarkinganalysisofthesystemassuchcouldnot
beundertaken.Nevertheless, somecomparisonsof Indonesia’sEQIsituationwerepossible,
particularly with regard to otherASEAN countries. When a more perfectedmapping/gap
analysis isfinalised, itshould thenbepossible toassess thesystemagainststandardcriteria
for network analysis, including coherence, coordination, inclusiveness, efficiency and other
indicators.
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IV.1 ChoiceofCountries
InordertoanalysetheASEANlevelstrategiesforenhancingEQIsystemsacrosstheregionand
assesshowanIndonesianstrategywouldbestbelinkedwiththeworkatregionallevelthreeother
ASEANcountries,Singapore,MalaysiaandThailand,werevisited.Interviewswithkeyinstitutions,
public and private,were conducted on the basis of questionnaires sent in advance to all groups
interviewed.Documentaryresearch,basedonwebsitesandmaterialsreceivedfromtheinstitutions,
wasextensivelyused.Followingthevisits,regularcommunicationwiththegroupsvisitedhasbeen
madetoensurethatconclusionsandfindingsareconsistentwiththesituationsineachcountry.
Thecriteriaforcountrychoicewere:
• CurrentlevelofEQIdevelopment
• SimilaritiesofexportstructuretothatofIndonesia
• Marketorientationofexports(EU,US,ASEAN,Japan)
• WhetherornotacontinuousimprovementprocessforEQIisknowntobeinprogress
Singapore:IthasaworldclassEQIwhichiscontinuouslyupgradedinaccordancewiththe
highestinternationalstandards.Itisseekingtosupplyanexceptionallywiderangeofmarkets.
Malaysia and Thailand: Intermediate level of EQI. These countries exhibit important
similaritiesintheirtradestructureswithIndonesia,henceconsiderationoftheircurrentposition
andfutureperspectivescanbevaluableasanindicationofwhatchallengesmayfaceIndonesia
from regional competitors. Thailand has also been following the “single trade window”
approach,whichIndonesiastartedtoimplementin2010.
Iv. exPeRIenCe of oTheR asean CoUnTRIes
experience ofother asean Countries
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Thepurposewastoobtainsomeinsightsintoeffortswhichhavebeenmade,andarebeingmade,in
thesethreecountriestodeveloptheirQIwiththeaimofincreasinghighvalueadded(HVA)trade.
IV.2 TheirEconomicContext
During2010,Indonesiahasexperiencedsomewhatsloweroveralleconomicgrowththanits
ASEANneighbours.Fortradeithasshownlargerrisesthanalloftheminimports,alongwith
justaboveaverageexportincreases(theAugust2010dataforIndonesia,coveringthefirst8
monthsof2010,dohowevershowariseof40%ascomparedwiththesameperiodin2009).
Thesituationintradecanbesummarisedasfollows:
• IndonesiahasamuchlowertradetoGDPratio(25%)thananyofthecountriesvisited.
Sincetheworld’slargestcountriesalwayshavelowersharesoftradetoGDPthantherest,
thisfactinitselfisnotsurprising.Butthemagnitudeofthegapissubstantial.Singapore’s
ratioiswellabove100%,Malaysiaisabout80%andThailandroughly65%.
• Singapore,MalaysiaandThailandallfigurewellintotheworld’stop30exportingand
importingcountries(2009WTOdata);Indonesiaisranked30forexports.
• Theproductbreakdownofexportsshowsthatmanufacturesaccountforapproximately
75%forMalaysia,roughly50%forThailandandslightlylowerforSingapore(where
servicesfigureprominently in the total). Indonesiacompares favourablywith these
ratios.Cumulativedataforthefirst8monthsof2010,whenthetotalofallexports
reachedalmost$100bn,showtheindustrysharetobeover61%.
• ProcessedagriculturalproductsareasignificantpartofexporttradeforbothThailand
andMalaysia,whilefishandseafoodexportsarestronginThailand.
• AllcountrieshaveanincreasingshareofexportsgoingtotheAsiaPacificregion,with
EUcountriesplayingaquiteimportantroleasdestinationsforexportsfromSingapore
andThailand.
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TheeconomiesdiffermarkedlyalsowithregardtoForeigndirectinvestment(FDI).Itaccounts
foralargeshareoftotalinvestmentinbothSingaporeandMalaysia,andisalsoquitesignificant
inThailand.ForIndonesia,FDIisfarlesssignificant,thoughrecentdevelopmentssuggestthat
theremaybesubstantialmanufacturinginvestmentsfromotherAsiancountries(China,Korea,
Japan)inthenearfuture.TheFDIpositionaffectsexport tradeverystronglysincemanyof
theinvestingfirmsselllargesharesoftheiroutputabroad.Thesefirmsalsousuallyactas“self
containedcircuits”forcontrolofqualityofexports.
IV.3. CoreOverallFindingsonEQIinSingapore,MalaysiaandThailand
Whileeachofthe3countriesvisitedisdistinct,thereareseveralfeatureswhichcanbefound
inallofthem:
(1) Thereisstrong awareness,inboththepublicandprivatesectors,oftheimportanceof
qualityissuesascriticaltoenhancedcompetitiveness.
(2) QI is closely linked with clearly articulated national plans for economic growth and
development.Thisisreflectedintheelaborationofnationalstrategiesfortheimprovement
ofthevariouselementsofQI.Forexample,ThailandhasaNationalMetrologyStrategy
coveringtheperiod2009-2017whichfocusesonChemistryandBiology,inlinewiththe
mainaimsofeconomicdevelopmentinthecountry.
(3) Linkages with the private sector are strong.Itismuchmorethana“token”stakeholder
in the formulation of policies, the development of standards and similar things. The
privatesectorisalsoamajoroperatorinmanydimensionsofEQI.Forinstance,thereare
some140calibrationlaboratoriesforscientificmetrologyinThailand,ofwhichthelarge
majority are private andThai (someareownedby Japanese andSingapore interests).
InMalaysia themarket forprovisionofTesting, InspectionandCertificationServices
(TIC),whichisgrowinginvalueatapproximately15%perannum,ishighlycompetitive.
SIRIMisoneoftheparticipants,butthelargemajorityofthe15orsofirmsareprivate
(mainlyaffiliatesofinternationalcompanies).Pricesforservicesofferedcanbesetfreely
byallcompetitors,includingSIRIM.Onevaluableresultofthemarketapproachhasbeen
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thatthefirmsaretendingtospecialisewithintheTICenvironment,sothathigherquality
outcomesareachieved.
(4) The institutional landscape reflects very sharply the orientations towards growth, the
private sector and competition. Government Ministries are firmly placed as coordinators
and policy makers – they are not operators.KeyinstitutionsforQI(SIRIMinMalaysia,
SPRINGinSingapore,TISIinThailand)functionaccordingtobusinessprinciples.While
thedegreeofgovernmentownershipvariesineachcase,themanagementanddecision
takingisdonealongprivatesectorlines.
(5) Partnerships of public institutions and private firms designed to tackle critical QI issues
are quite common.InThailandFXA,aprivateThaicompanymadeupofsoftwareexperts,
hasdesignedacomputerbasedtraceabilitysystemwhichallowscompleteidentification
atallstagesoftheproductionanddistributionchainforawiderangeoffoodproducts.
Thecompanyworksinharmonyprincipallywithtwoministries(AgricultureandPublic
Health),andtoalesserextentwithtwoothers(IndustryandTransport).Thetraceability
systemlinkstogetherthedatabaseswhicheachoftheministrieswaspreviouslyusingfor
itsownpurposesonly.
(6) The current institutional structure has taken a number of years to build, and changes
continue to take time. Inall3countries,theeffortstocreatethepresentsetofinstitutions,
including their legal status (corporatized bodies, quasi public institutions and other
variants)havegoneonforatleast10years.Thereareno“quickfixes”forimprovingEQI.
(7) The institutions all have special programmes to assist SME.Inoneinstance(MATRADE
inMalaysia),theinstitutionexplicitlyorganisestrainingforSMEinthevariousaspects
ofMSTQ.Everycountryrecognises,however,thatreachingouttoSMEisverydifficult.
Noneofthecountriesconsidersthatitspresentlevelofoutreachisanywherenearbeing
satisfactory.
(8) Public and private actors working together seek to be proactive and not reactive.The
Standards institutions provide a certain amount of “early warning” information about
complexnewprocessesofTechnicalRegulationwhicharebeingdevelopedandintroduced
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inexportmarkets (for instance,all3countrieshavebeenworking, throughpublicand
privatechannels,onREACHeversincethebeginningoftheprocessintheEU).
Wherereactivitycanhardlybeavoided,suchastheavianflu(HNI)problemwithpoultry
some2yearsago,majormeasureshavebeentakenveryquickly.InThailand,whichis
theworld’ssecondlargestexporterofprocessedpoultry,theEUDelegationassessedthe
rapidityandcomprehensivenessoftheThairesponsetobeexemplary.Itwasnotablethat
theauthoritieshadthepowerandthemeanstoimplementdrasticsafetymeasures.They
alsofollowedupimmediatelybyrequestingEUtoassistinthespeedyestablishmentof
thenecessarytestingandinspectiondeviceswithinThailandtoensurethecountryiswell
preparedforanyfuturemassivealertsofthiskind.
(9) “Dual standards”, meaning that products sold domestically may not have the same
quality as those sold in export markets still exist to some extent in Malaysia and
Thailand though this phenomenon has more or less been eliminated in Singapore.The
incidenceofmajorsafetyproblemswithindomesticmarketsinthesecountriesdoesnot
seemtohavebeensignificantinrecentyears,thoughtheyarenotentirelyabsent.
(10) The 3 countries all have strong representation abroad, through embassies, trade
missions, investment promotion offices, private business chambers and other links,
whichcontribute significantly toknowledgeaboutdevelopments in exportmarkets.A
premiumisdemonstrablygiventoobtainingandusinginformationasavitalelementin
theproductionandtradeeffort.
(11) Active participation in international MSTQ bodies is increasingly accorded priority.
There seems to be keen awareness of the possibilities for these countries to become
“standardsmakers”andnotsimply“standardstakers”.Apowerfulexampleistheexplicit
focusofMalaysiaonbecomingaworldleaderforHalalproducts(whichcoveravery
widerangeofitems).
A company has been formed (the Halal Development Corporation, HDC; under the
oversightofMITI)with theobjectiveofbecomingtheinternationalpacesetter in this
field.GiventhattheestimatednumberofHalalconsumersintheworldisoftheorder
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of1.6–1.9bn,andestimatesofcurrentannualglobaltradeinHalalproductsexceed$2
trillion(morethan100timestheexportsofIndonesia),thepotentialisenormous.
AstrongstandardsfocushasbeengiventotheHalal initiative.At theOrganisationof
Islamiccountries(OIC)meetinginApril2009,Malaysiawasassignedtheleadrolein
developmentofHalalstandards.MalaysiaStandard(MS)series1500isnowthelandmark
standardinthisarea.Specialfocushasbeengiventoefficientcertificationinthisfield.As
ofmid2010,theprocesswhichhadpreviouslytakenonaveragesome8monthshadbeen
cuttoonemonth.SixinternationalcompaniesoperatinginMalaysiahavebeencertified.
(12) Singapore, Malaysia and Thailand give importance to EQI matters in their trade
negotiations. In earlier years, theWTOprocesswasdominant, and in that period the
countries were all essentially smaller players. But now the swing is firmly towards
bilateralagreements(and,toalesserextent,regionalarrangements).
Singapore,withitsadvancedinfrastructureandclearlystatedambitiontobecomeaglobal
hub for innovationandhighquality,putsagreements relating toEQI (suchasMutual
RecognitionAgreements,MRA)asanessentialpartofanybilateralagreement.Malaysia
andThailand,which are not in the same situation as Singapore from the perspective
ofoveralldevelopment,adopt lessambitious targetsbutstill seekrecognition through
bilateralarrangementswithleadingpartners.
(13) Foreign assistance is no longer a significant contributor to development of QI.All3
countriesnowrelytoaverylargeextentontheirownresources.Amongforeignpartners,
Japanappearstobethemostactive.Itseffortsseemtobedirectedmainlyatassisting
thedevelopmentof“completechainsoftraceability”infoodandfisheries.TheJapanese
assistancealsomakesuseofbothpublic andprivategroups, especially forupgrading
qualitystandardsintheindustrialsectorwhereJapanesecompanieshavesignificantFDI.
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V.1.TheFeaturesofaSoundEQI
MappingandgapanalysisofIndonesia’sEQIinfrastructurefocusesonanassessmentofthe
institutionsinvolvedintheEQIandoftherelationshipsamongthem.
Publicandprivatesectorarelinkedintheentirevaluechainwithbothsectorshavingrolesand
responsibilitiestomeettherequirementsofinternationalmarkets.
v. maPPInG of The InDonesIan eqI InfRasTRUCTURe
mapping of The IndonesianeqI Infrastructure
FOUR CHAINS: PUBLIC AND PRIVATE SECTORRESPONSIBILITIES
Producerand
ExporterChain
MSTQChain
LawEnforcement
TheImpementation
Chainfor MSTQ
The continuous system from collecting the raw meterial to delivery of product to the final uses (consumer)-Private Sector
The Assurance thatproducts meet standars in all respects-Public Sector,with some Private Sector
help (as serviceprovider)
Public Sector, with some Private Sector help (as
service provider)
Public Sector
Thediagramsuggeststhefundamentalpoint:MatchingtheChainsleadstoaQualityEfficient
Economy(QEE).Ifthechainsfittogether,theywillproduce
Figure 1 : Four chains: Public and private sector responsibilities
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3KEYCHARACTERISTICS
• NoGapsOfCommunicationOrCooperationBetweenTheChains–EachWorksTo
HelpTheOthers.
• NoDuplicationOfAuthorities–ResponsibilitiesAreClear.
• NoGapsInAnyChain–TheyAreAllSeamless.
Inanysystemwhichhasthesethreecharacteristics,therewillbethreekeyoutcomes
3RESULTS
• CostReduction.
• Confidence.
• CompetitiveStrength–athomeandabroad.
V.2.GovernmentStructureandEQI
Formorethanadecade,Indonesiahasbeengoingthroughmajorpoliticalreforms,whichare
notyetentirelycompletedandimplemented.
TheGovernmentofIndonesiadidestablish,however,aNationalDevelopmentPlanRPJM2005
–2025tobeimplementedin4phases,eachof5years.ThecurrentstepRPJM2(2010-2014)
focusesonthe“ConsolidatingthereformedIndonesia,increasingqualityofhumanresources,
capacitybuildinginscienceandtechnology,strengtheningeconomiccompetitiveness”
ThegoaltoimprovethestructureofEQIfitsthereforeperfectlywellintothecurrentphaseof
nationaldevelopment.
ImprovingthequalityofIndonesiangovernmentinstitutionsisnoteasyduetoseveralfactors.
(1)Institutionalcompartmentalizationandfragmentation.
(2)Insufficienceofsystemgovernanceandstrategicplanning.
(3)Constraintsimposedbycivilservicerulesonallocationofhumanresources.
Thecomplexityof thepoliticalsituationhascontributed toastronglyriskaversebehaviour
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ofinstitutionsandindividuals.Anypronouncedmovestowardschangeonthepartofspecific
actorsrendersthemvulnerabletoseriouscriticism,whileatthesametimenotofferingthem
aprospectofsignificantrewardsfor therisks theyare taking.Inotherwords, therearefew
“institutionalincentives”favouringchange.
TheAutonomyProcessaddsfurtherconstraintstothesystem:
• Inrecentyears,andinmanyfields,authorityaswellasoperationalresponsibilitiesare
beingdevolvedtoregions.Thisprocessappearsirreversible.
• ItplacesIndonesiainasituationsimilartoothermajorcountriesintheworldwhich
havefederalstructures,forexampleIndia,USA,Brazil,SouthAfrica.
• AkeyquestionforEQIistherefore:whatauthorities/responsibilitiesshouldremainat
nationallevel,andwhichonesshouldbeatregionallevel?
• Coordinationacrossthedifferentlevelsbecomesacrucialfactorinthedevelopmentof
EQI.
V.3 QualityInfrastructure
AQIisbasedonanumberofcomponents.Thesecomponentsarecloselyrelatedandforma
networkwhoselogicallinksarebasedonatechnicalhierarchy.Thefollowingdiagramsetsout
thelinkages.Itcanbeviewedinthreesegments.Thecentralpart(the“spine”)showsthecore
componentswhichshouldexist inafullyarticulatednationalsystem(andwhichdoexist in
Indonesia).Tobeacceptedinternationally,andthereforeprovidethesupporttoexportswhich
nationalproducersandtradersrequire,thespinehastobeconnectedtothekeyinternational
institutions– these institutionsareshownon the righthandsideof thediagram.Thewhole
systemexists,however,toserveproducersandtraders.Accordingtotheproduct(andservice)
sectorstheyworkin,andtheprocessestheyuse,thesefirmsformpartoftheirownvaluechains.
Thetruetraceabilityofstandardshastobeassessedinthosevaluechains.Theyarerepresented
schematicallyonthelefthandsideofthediagram.
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Source:PTB
Thenationalnetworkmustbegearedtointernationalrequirements.Itisonlyiftheserequirements
aremetthattherecanbeanassurancethatinternationaltradeofgoodsandserviceswillnotbe
impededbyTR.ApictureofthefullydevelopedCompliance/Competitivenesssystemisshown
inthefollowingdiagram.
Figure 2 : Quality infrastructure
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Source:PTB
TheNationalQIisbasedonfourpillars:Metrology(M),Standardization(S),Testing(T)and
Quality(Q),ofwhichthelasttwoelementscanbecombinedtoConformityAssessment(CA).
Metrology
• Calibrationlaboratories
• MetrologyinChemistry
• VerificationSystem(legalmetrology)
Standardization
• VoluntaryNational&internationalstandards
• TechnicalRegulations(TR). InIndonesia theseareusuallyreferred toasStandards
Wajib.
Testing&Quality(ConformityAssessment)
• Testing,Analysis&Inspection
• Accreditation&certification
Figure 3 : Quality infrastructure
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Improving a country’s capacities in metrology, standardization, testing, quality assurance,
accreditationandcertificationareatthecoreofimprovingtheabilitytoexporthighquality,
highvalueaddedproducts.
It is apparent, therefore, that there has to be in place in Indonesia a systemwhich can
provide these technical services to the required technical and objectivity levels. Over
the years Indonesia has of course established, essentially via the provision of publicly
owned services, a wide ranging quality infrastructure (QI) designed essentially to
meet internalneeds.Thoseneeds includeIndonesia’sowninternalTRandanumberof
elementsrelatedtostandardisingproductsandservicessoldin thedomesticmarket.As
theworld’s fourth largest country, that domesticmarket oriented development process
inQIisperfectlynormalandnecessary.Butsincethe1990s,mostoftheworld’slargest
developing countries (China, India,Brazil)which had similarly created systemswhich
weredomesticmarketoriented,havebeenraisingtheprofileofinternationaltradeintheir
economies,andthusbegunadaptingtheirQIsuchthatitbecomesasystemwhichserves
thegrowing internationaldimensionsof theireconomies. Indonesia isnowengaging in
suchadaptationofitsownsystemtowardsaninternationallycompatibleone.Thatsystem
canbereferredtoasIndonesia’sExportQualityInfrastructure(EQI).
V.3.1Metrology
ThewordMetrologycomesfromtheancientGreekwordsmetron(measure)andlogos(study
of)andisthescienceofmeasurement.Metrologycoversalltheoreticalandpracticalaspectsof
measurement,asetofoperationstodeterminethevalueofacertainquantity.
Both,scientific&technicalmetrologyaswellas legalmetrologyare thebasisfor technical
development, trade and business.Without a reliablemetrology network that is traceable to
internationalmetrologyitisnotpossibletocreateconfidencetoconformityassessment.
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MetrologyinIndonesiaiscarriedoutbyseveralGovernmentInstitutionsbasedonpresidential
decrees and a Legal Metrology act. The institutions represent Indonesia in the relevant
internationalmetrologyorganizations.
METROLOGY: WHY IT MATTERS?
Without it, no confidence can be placed in the otherelements of MSTQ
the foundation for acceptabilityand recognition of Indonesia’s systemin the rest of the world
provides the system bywhich users of goods andservices can be sure they are not cheated
also provides buyers of exports with similarassurances
Trade and Business
Scientific & TechnicalMetrology
LegalMetrology
METROLOGY: FUNCTIONS TO BE PERFORMED AND/OR COORDINATED
Scientific & Technical LegalKIM-LIPI, RC CHEM-LIPI & BATAN Directorat Metrologi - MOTCustody of Nasional Reference Standards(KIM-LIPI) & National Reference Matrials
(RC CEM LIPI)
Participation in, and where possibleorganisation of, Inter Comparissons
Calibration of InstrumentProvision of CertifiedReference Materials
Research and DevelopmentinMetrology & Calibration
Training
Type Approvals for domestic & imported measuring devices
Verification and Re-verification(calibration) of measuring devices
Market Surveillance on measuringdevices used for trade
Training of Staff
Figure 4 : Metrology : Why it matters?
Figure 5 : Metrology : Functions to be performed and or coordinated
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TheInstitutionsdealingwithscientificmetrologyinIndonesiaare:KIM-LIPI,RCChem–LIPI
&BATAN.LocatedwithintheMOT,DIMETisinchargeforlegalmetrology.Thesituation
oftheseinstitutions,asassessedbytheconsultantteam,issetoutinthefollowingparagraphs.
V.3.1.1Scientific&TechnicalMetrology:AnInstitutionalAssessment
KIM-LIPI
ResearchCenter forCalibrationInstrumentationandMetrologyPuslitKIM-LIPIwas
appointedascustodianofnationalstandardsbypresidentialdecreein2001replacingdecree
from1989.ItsupportstheNationalAccreditationCommitteeKANwithinter-comparisontests
oncalibrationinregardsofservingasreferencelaboratoryandwiththeevaluationofresults.
Internationally,KIMparticipates in inter-comparison testsprovidedbyADMPonanannual
basisandhasorganizedoneitself.ItfollowsandcooperateswithAPMPonaregionalbasisand
BIPMoninternationalbasis.
ObservationsonKIM:
• KIMisinchargeforscientificmetrologybutDIMET-MoT(DirektoratMetrologi)still
holdsthephysicalnationalstandardformassbutdoesnothavethefacilitiestouseit
fortraceability;KIMservesasreferenceformassinIndonesia.
• KIMhasbudgetconstraintsinregardstopurchaseofequipmentandmaintenanceoffacilities
RCChem-LIPI
ResearchCenterforChemistryRCChem–LIPIistheappointedIndonesiancustodianfor
chemicalreferencestandards.(RENSTRALIPI2010-2014).
ObservationsonRCChem-LIPI:
• RC Chem –LIPI does, at present, not have the assets (buildings, equipment) and
capabilitytofulfillthedesignatedtask.
• RCChem–LIPIissupportedbyPTB.Nospecificprojecthasyetbegun.Itisexpected
thatanyprocesstoputRCChem-LIPIinapositiontomanagechemicalmetrology
wouldtake8–10years.
• RCChem–LIPIisplanningtocooperateandcoordinatewithBBIA–MoI,POMN-
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BPOM, PPMB-MoT andNCQC-MMAF in order to establishChemicalReference
MaterialsforIndonesia.
• RCChem–LIPIislackingfacilities,HRandorganizationalstructure
V.3.1.2LegalMetrology:AnInstitutionalAssessment
DirektoratMetrologiDIMET-MoTisinchargeforLEGALmetrologyinIndonesiabasedonthe
LegalMetrologyactno.2-1981(anActofwhichrevisionhasbegun,andmaybecompletedby2013).
Itsresponsibilitiesare:
• Policydevelopmentonlegalmetrology.
• holdstheIndonesianMASSreferencestandard.
• doesstandardspolicydevelopment.
• typeapprovalformeasuringinstrumentsused(madeorimported)inIndonesia(OIML).
• verification&re-verificationofmeasuringequipment.
• MarketSurveillanceonmetrologyequipmentusedfortrade.
• followandcooperatewithOIMLoninternationalbasis.
ObservationsonDIMET-MOT:
• TheroleofDIMETinpolicydevelopmentappearstobeunclear.
• EverysinglemeasuringdeviceisverifiedbyDIMET-MoTwhetheritisusedforlegal
metrologyornot.
• Itcannottracethosedeviceswhichareusedforlegalmetrology.
• Itissupposedtohandlemorethan60milliondevicesatpresent,andthisnumberis
growingannuallyatasignificantrate.
• Asanexample:therearecurrentlyabout38millionKWHmetersinuse.KWHmeters
aresupposedtobere-verifiedevery10years–3.8millionperyear.Thereisalsoa
substantialamountofwatermeters,taxiargos,balancesetc.
• Yettherearecurrentlyonly835metrologyinspectorstocarryoutthetask.Andthese
inspectorsareemployedbytheregionalgovernments,notbyMoT.
• Allequipmentusedforlegalmetrologymustbeverifiedandphysicallycalibratedby
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DIMET-MoTand/or theDINAS.Calibrationcertificates issuedbyKANaccredited
calibrationlaboratoriesarenotacceptedasreference.
BATAN
Center for Nuclear Energy Development BATAN was established through Presidential
Decree No. 103, 2001 on BATAN& BAPETEN Tasks, Function, and Responsibility and
throughPresidentDecreeNo.64,2005
BATANisinchargeforNUCLEARENERGY
V.3.2Standardisation
It is the process of establishing technical standards that is carried out based on consensual
agreementof the interestgroupsaffectedby thegiven issue.Astandard is adocument that
establishes uniform engineering or technical specifications, criteria, methods, processes, or
practicesinaccordancewiththecurrentstateoftechnology.
Themainfunctionsofstandardizationareto
• eliminatetechnicalobstaclestotrade.
• enhancetechnicalcooperation.
• increasesuitabilityofproducts,systemsandservices.
• reducecostforproducers,suppliersandconsumers.
Standards are, per definition, voluntary but their application can be made mandatory by
nationallawsor(technical)regulations.Standardsareusedtoimplementguidelines,adesign,
ormeasurementsinordertoobtainsolutionstoanotherwisedisorganizedsystem.Technical
regulationsareimplementedtoprotectlife,health,propertyandtheenvironment.
ThefielddiscussedhereincludesVoluntaryNational&InternationalStandardsandTechnical
Regulations (Standards Wajib). The linkage of the national and international elements is
depictedinthefollowingdiagram.
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Source:PTB
V.3.2.1Standardisation:TheInstitutionalSituationinIndonesia
STANDARDIZATION AND TECHNICAL REGULATIONS
National Value Chain
Applicale to all productsandprocesses
WTOTBT/SPS
Notificationauthorities
- Health- Safety- Environment- Consumer Protection
TechnicalRegulations
(compulsory)Ministri n
Ministri 1
Ministri 2
Ministri ...
WTOTBT/SPSEnquirypoints
Notifications
Comments
Con formity assessmentInfo worldwide
InquiriesComments
NationalStandards
Bodt
Participation in Technical Commit tees
National Standard (voluntary)International Standards
Regional Standards
CODEX Alimentarius
ISO
International QI System
MSTQ - STANDARDIZATION IN INDONESIA
NationalStandardization
Body BSN
Ministry ofManpower (Depnaker)
TechnicalRegulatingAuthorities
MoT, Mol, MoA, MMAF, MoE, MoF, Mo Health, MoPW(PU), BPOM (Agency for Food & Drugs), Mo Transportation (MenHub). Mo Manpower
l
Figure 6 : Standardization and technical regulations
Figure 7 : MSTQ-Standardization in Indonesia
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V.3.2.2TheStandardsInstitutions
NationalStandardizationBodyBSN
NationalStandardizationBodywasestablishedbyPresidentialDecreeNo.13of1997,later
amended by Presidential Decree No. 166 of 2000 regarding Position, Duties, Function,
Authorities, Organization Chart as well as Working Conditions of Non-departmental
Government Institutions.A furthermodification by PresidentialDecreeNo. 103Year 2001
made BSN a non-departmental government institution with main responsibility to develop
and conduct standardization activities in Indonesia.This agencywas established to replace
thefunctionofNationalStandardizationCouncil–DSN.Inperformingitstasks,theNational
Standardization Agency refers to the Government Regulation No. 102 of 2000 regarding
NationalStandardizationwhichsetoutitsresponsibilities:
• Assessmentandpreparationofnationalpolicyinthefieldofstandardization.
• DefiningIndonesianNationalStandards(abbreviatedSNI).
• Organisingnationalandinternationalcollaborationinthefieldofstandardization.
• Provideinformationsystemsonnationalandinternationalstandards.
• ServeasWTO-TBTnotificationandenquirypoint.
MinistryofManpowerResponsibilities
• Prepare SKKNI (Standard Kompetensi Kerja Nasional Indonesia) for professional
competence.
• SKKNI(StandardKompetensiKerjaNasionalIndonesia)onprofessionalcompetence
forselectedpositions(e.g.operators,bankdirectors).
• SKKNIarevoluntarybutmaybemademandatorybyregulatingauthorities.
V.3.2.3TheRegulatoryBodies
The regulatory structure and the specificmatters regulatedby eachMinistry/Institution, are
describedinthefollowingdiagramandthetextbelow
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TheIndonesianGovernmentInstitutionsinvolvedinthefieldoftechnicalregulationsandtheir
authoritiesandresponsibilitiesare:
MinistryofTrade(MoT)
• TRfortradestandardization(labeling)
• TRforqualitycontrolofexport/importproducts.(registrationNPB&NRP)
• TRforConsumerProtection
MinistryofMarineAffairs&Fishery(MMAF)
• FishandseafoodproductsinIndonesia,currently81regulations
• Definesgoodpracticesinfisheriesproductionanddistribution
• EU-appointedas“competentbody”forfisheryproducts
MinistryofAgriculture(MoA)
• Nonprocessedproducts(rawsugar,cocoabean,rawrubber,horticultural
product,livestock)
• Veterinarycontrolforanimaloriginfoodbusiness
• Nationalstandardizationsysteminagriculture
MSTQ - TECHNICAL REGULATORY AUTHORITIES
MOT MOI MOA BPOM MOForest
LebelRegistrationImport &Export
MMAF
FisheryProducts & Processes
FoodBaveragesIndustry op Forest and PlantationProducts(IHHP)FurnitureAutomotiveMachinesTextilePaintsEECetc
Fresh Food Plant OriginRegistrationLive stockFood of animal origin
MOTransp.MOManp MOEnv
VehiclesProfession,PressureVessels
Waste water,Air emission Waste & Hazardous waste
ProcessedFoodContaminant,Food additiviesRegistrationFood labelsDrugs & Cosmetics
Raw material from forest and timberPlantationSawn timber and plywood
Figure 8 : MSTQ-Technical regulatory authorities
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• GoodManufacturingPractices(GMP)
• Registrationoffreshfoodofplantorigin
• Foodsafetycontroloffreshfoodofplantoriginatborderpoint
• GoodAgriculturalPractices(GAP)forfruitandvegetables
BPOM(AgencyforFood&Drugs)
• Legislation,regulationandstandardizationforpharmaceutical,cosmeticandprocessed
food,contaminant,foodadditivesandfoodlabeling
• Licensingandcertificationofpharmaceutical,cosmeticandprocessedfoodindustries
MinistryofIndustry(MoI)
• Regulatorfor22industrialproductsectors(3moresectorsareexpectedtobeadded
inthenearfuture)andtheregulationofmandatorymarkingofproductswiththeSNI
labelandtheSNInumberitrefersto.
• Automotive
• Chemicalsforconstructionmaterial
• Chemicalproductsandfertilizer
• Furniture
• Toys,sportequipment,houseequipment
• Ceramicsincl.glass
• Plastics&plasticproducts
• Ships&itscomponents
• Variousproducts,suchasspectacles
• Footware,suchasshoesandsandals
• Pulp&Paper
• Textile
• Paints
• Packaging(subcommittee)
• Jewels
• DownstreamChemicals
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• Machineries
• Electronic&electricalcables
• Airplane(notactiveyet)
• Food
• Beverages
• Metals
• Salt(inpreparation)
MinistryofTransportation(MoTr)
• Allmeansofpublictransport(goods&people)
• VehiclesoperatedinIndonesia
MinistryofEnvironment(MoE)
• Environmentalissuessuchaswastewatereffluent,airemission(pollution),wasteand
hazardouswaste,generatedbyproductionandproducts
• Installationandoperationofwasteincinerators
MinistryofForestry(MoFo)
• Rawmaterialfromforestandtimberplantation
• Sawntimberandplywood
• SustainableProductionForestManagementandTimberLegalityVerification
• GOI–MoFoisnegotiatingaVoluntaryPartnershipAgreement(VPA)withEU
MinistryofPublicWorks(MoPW)
• Safetyofbuildingsandconstructions
MinistryofManpower(MoMP)
• Allkindsofpressurevessels(incl.gastanksandsteamboilers)
• Certification of selected operators (pressure vessels, forklifts etc.) and professions
withreferencetoSKKNI(StandardKompetensiKerjaNasionalIndonesia)
MinistryofHealth(MoH)
• Qualityofdrinkingwaterfromwellsandpublicwatersupply(PAM)
• Healthfacilities
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ObservationsontheRegulatorySituation:
• AsofDecember1,2010thereare76technicalregulationslistedontheBSNwebsite,
20fromtheMinistryforEnergyandMineralResourcesonelectricalinstallations,38
from theMinistryof Industryonvarious industrial products and required labeling,
1fromtheMinistryforAgricultureonsugar,2fromBPOMonfoodcodingandon
sweeteners,14fromtheMinistryofTransportationonairtrafficand1fromDirectorate
GeneralofPostandTelecommunicationonstandardization.The76regulationsrefer
to157SNIandmaketheseSNImandatory.
• Only4ofthelistedtechnicalregulationshaveaWTOTBTnotificationnumber.
• There are 2 different regulations on sugar, one fromMoI (56). SNI 01-3140.2-2006
andonefromMoA(12)1.SNI01-3140.1-2001.SincetheSNInumberissamewitha
differentyear,MoIreferstotherevisedversionbuttheMoAregulationisstillonthelist.
• ThereisnoUmbrellaLawonRegulationnoristhereasingleInstitutiononRegulatoryAffairs.
• Theregulatorysystemisoverlappinginmanyfieldsandisnottransparent.Theonly
exceptionistheMinistryofMarineAffairsandFisheryMMAFthatisthesoleauthority
fortheentirevaluechainofallfisheryproducts,wildcatchaswellasfarming.
• Therolesandauthoritiesofcentralgovernmentinstitutionsandlocalgovernmentsin
theregions(OtonomiDaerah)isnotregulatedproperlyandleadstofrictions.
• Thereisnoseparationofregulatorsandoperators!SeveralGOIinstitutionsoperatein
bothareas.
• Marketsupervisionisinsufficient.
• Muchstrongerprivatesectorinvolvementisrequired.
• DirectorateMetrology(MoT)istheregulatorforlegalmetrologybutalsotheoperator.
Itdoesnothavethecapacitytofulfillthistask.
• TheroleofDirektoratIHHP–IndustriHasilHutandanPerkebunanofMoIappearsto
beoverlappingwithotherministries.
• All woods (wood, rattan, bamboo) harvested in forests are under the authority of the
MoForestry.WoodsthatcomefromplantationsareundertheauthorityofMoAexceptteak.
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• Certificatesoforiginforallkindsofwood(forest&plantation)areissuedbyMoF.
• InJakartathereare5stationstocheckroadworthinessoftransport(bus,truck)vehicles
butimplementationisveryweak.
• AllproductsunderTechnicalRegulations(SNIwajib)havetoberegisteredbyPPMB-
MoT(soleauthority)withanNPBnumberforimportedproductsandanNRPnumber
for local products. There are currently 57 TR (SNI wajib) registered withWTO.
PPMBconductsregistrationbasedonconformityassessmentperformedbynotified
bodies(CAB)whichareappointedbytheregulators(MoI,MOAetc.).CABsmustbe
accreditedbyKANandtheymustbelocatedinIndonesia.
• ThereisagovernmentregulationthatrequiresarecommendationfromMoTtoimport
finishedgoods.Itisnotclearwhatarethecriteriatogetthisrecommendationandwhat
arethebenefitsforconsumerprotection.
• BPOMchecksfoodproductsinretailpackagingbasedonSNIandprovidesBPOM
registrationnumbers.
• EXPORT:Thereisalistof23commodities(likeRubber,essentialoils,cacaoetc.)that
havetobetested&certified(mandatory)forexport,eventhoughcertificationisnot
mandatoryfordomesticuseSeeKeputusanMenperindagNo164/MPP/Kep/6/1996
Itisplannedtobringcacaointothemandatoryareaalsowhenitisusedinthedomestic
market.
• BPOMpreparesstandardsforprocessedfood,contaminant,foodadditivesandFood
labelling(Healthact).
NOTE:MoTrecentlymadeanewregulationonlabelling–allproductsmusthavelabels
inIndonesianlanguage.MoIandotherministriesalsocreatelabellingregulations.
• TheMoImadeproductlabellingwithSNImarkandnumbercompulsoryforvarious
products.
• Thereisconfusiononthelabellingissue.Itisunclearwhoisinchargeforwhatand
thereappearstobenopropercoordination.
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V.3.3TestingandQuality:ConformityAssessment
• AccreditationandCertificationserveastoolstoensurecompetenceandtheapplication
ofstandardizedminimumrequirements.
• Test laboratories, Inspection andCertification bodies are accredited to demonstrate
theircompetence.
• Certificationof a product (a termused to include a process or service) is ameans
ofprovidingassurancethatitcomplieswithspecifiedstandardsandothernormative
documents. In contrast to that, one of the characteristic functions of the personnel
certification body is to conduct an examination, which uses objective criteria for
competencescoring.Certificationbodiesforproductshavetomeetallrequirements
stated in ISO Guide 65 and Certification Bodies for persons have to meet all
requirements stated in ISO 17024 if they wish to demonstrate that they have the
competenceperformingthesecertifications.
• Testingandcalibrationlaboratoriesconducttestsandcalibrationsbasedonsuitableand
verifiedmethodsandhavetomeetallrequirementsstatedinISO17025iftheywish
todemonstratethattheyoperateamanagementsystem,aretechnicallycompetent,and
areabletogeneratetechnicallyvalidresults.
• Inspection bodies carry out assessments which may include the examination of
materials,products,installations,plant,process,workprocedures,orservices,andthe
determination of their conformitywith requirements, and the subsequent reporting
ofresultsoftheseactivitiestoclientsand,whenrequired,tosupervisoryauthorities.
InspectionbodieshavetomeetallrequirementsstatedinISO17020iftheywishto
demonstratethattheyhavethecompetenceperformingtheseinspections.
V.3.3.1TestingandCalibrationLaboratories:PublicSectorInstitutions
There are severalMinistries and Institutionswhich operate calibration and test laboratories
acrossthewholeofIndonesia.Theseare:MinistryofTrade(MoT),MinistryofIndustry(MoI),
Ministry ofMarineAffairs and Fishery (MMAF),Ministry ofAgriculture (MoA),Agency
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for Food andDrugs (BPOM), the Indonesian Institute of Sciences (LIPI) and theNational
AgencyforAssessmentandAppliedTechnologies(BPPT).Therearealsotheentitiesworking
onprovincialanddistrictlevels,theDINAS.Thesebodiesprovidetestingfacilitiesservingas
ConformityAssessmentBodies(CAB)fortheregulatedareaandasproducttestingunitsfor
voluntarytestsaccordingtoSNIandinternationalorforeignstandards.Atpresentasubstantial
numberoflaboratoriesusedforconformityassessmentarenot(yet)accreditedoroperateon
ascopethatisnotcoveredbytheiraccreditation.Thelistoftheirspecificresponsibilitiesand
internalorganisationisasfollows:
MoT–LaboratoryforQualityTestingofExportandImportGoods(PPMB) (food&feed,
essentialoils,mosquitoessences,fertilizers,cement,textile,tires,cement,furniture,electricalcables).
MoA - 10BalaiBesar (CAB)&33DINAS (residue pesticides, veterinarymedicine, feed,
agriculturalproducts,agriculturalmachinery&equipment,qualityseeds/seedlings,fertilizer,
pesticides,organicfoodsystem,QualityManagementSystem(QMS)&CABforfoodsafety
with33DINASand1MoAlab.)
MoI–AgencyforResearchandDevelopmentofIndustry(ARDIorBPPI)
- CenterforStandardization
- CenterforResourcesandEnvironment
- CenterforIndustryBusinessClimate(PusatIklimUsahaIndustri)
- CenterforTechnologywithR&Dcentersprovidingtestingandqualitycontrolfacilities
forproductsindifferentsectors.11BalaiBesar+11Baristan
• CenterforChemistryandPackagingBBKK,Jakarta
• CenterforAgroBasedIndustryBBIA,Bogor
• CenterforTextileBBT,Bandung
• CenterforCeramicsBBK,Bandung
• CenterforPulp&PaperBBPK,Bandung
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• CenterforMaterialsandTechnicalProductsB4T,Bandung
• CenterforIronandMachinesinBandungBBLM,Bandung
• CenterforIndustryofFarmProductsBBIHP,Makassar
• CenterforEnvironmentalTechniquesBBPP,Semarang
• CenterforLeather,RubberandPlasticsBBKKP,Yogjakarta
• CenterforHandycraftsandBatikBBKB,Yogjakarta
- plus the 11 Balai Riset dan Standardisasi (BARISTAND) laboratories spread over
Indonesia in BARISTAND Aceh, Medan, Padang, Palembang, Tanjung Karang,
Surabaya,Banjarbaru,Pontianak,Samarinda,Manado,Ambon.
MMAF–Feed&Medicine,Health,Residue(3MMAF,2provinces&3private),Disease(46
MMAF&about39provincial/DINAS),NationalCenterforQualityControl(NCQC).
BPOM–BPOMoperates30BalaiPOMlaboratories (ProcessedFood&Drugs)acrossall
partsofIndonesia.NationalQualityControlLaboratoryforDrugsandFood(PusatPengujian
ObatdanMakananNasional-PPOMN).
BPPT – B2TKS-Strength of materials, structures & components, BTL-Environmental
Technology&Biotechnology,LAPTIAB-Pharmaceutical&MedicalTechnology,STPPolymer
Technology&RoHS.
LIPI–Quality&TestingTechnology,Biology,Chemistry,Physics,Metallurgy,Electronics&
Telecommunication,GeoTechnology,PuslitKIM-LIPI.
V.3.3.2Testing:PrivateSectorEntities
Sucofindo (48 branches and 18 laboratories), TUVs, SGS and many more private service
providersconducttestingofvariousproductsaccordingtoSNI,Indonesianregulations(SNI
wajib),International&othernationalstandards(ISO,EN,ASTM,JIS,DIN,AFNORetc.).Some
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serveasCAB(EUnotifiedbody)forproductsunderInternational&otherNationalRegulations
(EUdirectives,Foodlaw,USFood&DrugsAdministration,UN/ECEonautomotivepartsand
vehicles,CBonsafetyofelectricalandelectroniccomponents,equipmentandproductsand
others)basedonstatusasappointed.
V.3.3.3Inspection:PublicSectorInstitutions
On an Indonesia-wide basis there are the followingMinistries and Institutions:MoT,MoI,
MMAF, MoA, BPOM, MoE, MoTr, MoMP, BPPT. Again, at province and district level
therearetheDINAS.Theseinstitutionsconductinspectionsforconsumerprotection,import
&export,metalproducts,structures, food&fishery, farming, livestock, feedproduction&
distribution, medicine distribution, pressure vessels, steam boilers, vehicles, loaded trucks,
packagingdangerousgoodsforland-,sea-,air transport,wastewater,airemission,waste&
hazardouswaste,incinerators.
Thespecificresponsibilitiesare:
MoT:Consumerprotectionbymarketsurveillance,PPMB(import&export).
MoI:B4T(metalproduct,activestructures,welding).
MoA:farming,livestock.
MMAF:medicinedistribution,feedproduction&distribution,wildcatch&farming,collection,
processing&EUborderinspectionforfisheryproducts.MMAFhas40inspectorsforGMP,
GAP,HACCP.Inspectionisperformedonce/yearandhas43inspectorsforhatcheriesandabout
50inspectorsforfarming(monitoringresidueplan).
Thereareabout250inspectorsonregionallevelunderregionalauthority.
BPOM:Consumerprotectionbymarketsurveillanceforprocessedfood&drugs.Licensing
and certification of processed food, pharmaceutical and cosmetic industries based onGood
Manufacturing Practices; Pre-market evaluation of products; Post-marketing surveillance
includingproductsamplingand laboratory testing, inspectionofproductionanddistribution
facilities,investigationandlawenforcement.
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MoMP:Inspectionofpressurevessels,steamboilersetc.
MoTr:Inspectionofvehicles,loadedtrucks,packagingdangerousgoodsforland-,sea-&air
transport.
MoE:Inspectionofwastewatereffluent,airemission(pollution),wasteandhazardouswaste
generatedatproductionsites,incinerators.
V.3.3.4Inspection:PrivateSectorInstitutions
Sucofindo,TUVs,SGS,Lloydsandmore
• Pre-shipmentinspection(variousproducts)forexport.
• TUVandothers:conducttechnicalinspectionofpressurevessels,elevator,conveyor
&machines,vehiclesforexporttoEU.
TUV: technical inspectionofpressurevessels, elevator, conveyor&machines, vehicles for
exporttoEU;Pre-shipmentinspection(variousproducts)forexport.
SGS:Pre-shipmentinspection(variousproducts)forexport.
SUCOFINDO:Pre-shipmentinspection(variousproducts)forexport.
V.3.3.5 Certification–certificationofconformityofproductsorsystemswithstandards
ortechnicalregulations
Certificatesareprovidedforproducts,personsandsystemsthatfulfilminimumrequirements
described in standards.The certificates aredeliveredby awide rangeofpublic andprivate
sectorinstitutions,whichingeneralspecialiseinparticulartypesofcertification(bygeneric
theme,byprocess,andbyproduct).
.
V.3.3.6Certification:PublicSectorInstitutions
Theinstitutionsinvolvedandtheirresponsibilitiesareasfollows:
• Productcertificationincl.packaging&labelling–CAB&LsPro.
• SystemCertification–QMS,EMS,GMP,GMA,GHP,HACCP,FoodSafety(health
certificates),Eco-label,FSC,TimberLegality-CAB&LsPro.
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• Inspection–food(fresh,processed,fish),vehicles,pressurevessels,legalmetrology,
environment(effluents,emission,waste),forest-CAB&LsPro.
MoT:PPMB(CABfor,food,primarybatteries,lamps,tires;LsProforcpo,fertilizercement,
steelbars).
MoI: 11BB&11Baristan (CAB for pressurevessels, heat exchanger, tanks, pipes, tires,
ESlamps,drycellbattery,CB,food,bottleddrinkingwater,wastewater,foodpackaging&
packaging dangerous goods, LsPro for lamps, cement, tires, concrete steel, textile, glass&
ceramics,pulp&paper,EMS,QMS,HACCP,jewelry.
MMAF:Certification is conducted for GoodAquaculture Practice (GAP), GoodHandling
Practice(GHdP),GoodManufacturingPractices(GMP),andHazardousAnalysisandCritical
ControlPoint(HACCP).Healthcertificatesareissuedbytheprovincialfisherylaboratoriesthat
areundertheauthorityoftheProvincialGovernments.
BPOM:Certificationofprocessedfood,pharmaceuticalandcosmeticindustriesbasedonGood
ManufacturingPractices,HACCPforprocessedfood.Healthcertificatesforexport.
V.3.3.7Certification:PrivateSectorInstitutions
Sucofindo,TUVs,SGS,BureauVeritas,Lloyds,AgungLestariandmanymoreprovideproduct
&systemcertificationaccordingtoSNIandinternationalorforeignstandards.
Privatecertificationbodiesprovideproduct&systemcertificationfortheregulatedarea(CAB)
TUVRheinlandandsomeothersareEUnotifiedbodyforpressurevessels,elevator,conveyor,
machines,automotiveparts&vehiclesUN/ECE,medicaldevices,EMC,electricalsafetyCB.
V.3.3.8ObservationsonTesting,InspectionandCertification:
• MMAF is both a Regulator and an Operator, conducting inspections onmedicine
distribution,feedproduction&distribution,wildcatch&farmingandprocessing.It
isgenerallyadvisedthatthefunctionsofregulatorandoperatorshouldbeseparateto
avoidanypotentialconflictofinterest.
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• Health certificates are mandatory for export but not for domestic market. Health
certificatesareundertheauthorityofMMAF,whichdelegatesittothoseregionallabs
• GoIinstitutions“certify”theirowninspectors,apracticethatbearstheriskthatcompentence
cannot be ensured. In element 4.2.1 of ISO 17024 it is stated: “The certification body
shallbestructuredsothattogiveconfidenceinitscompetence,impartialityandintegrity.
In particular, the certification body shall be independent and impartial in relation to its
applicants,candidatesandcertifiedpersons,includingtheiremployersandtheircustomers,
andshalltakeallpossiblestepstoassureethicaloperations.”
• B2TKS-BBPTdoesproductcertificationincludingfactoryinspections
• ThereisaconsumerAssociationJLK(foundation)withlittlepower,producersarenot
broughttocourtfornonconformingproducts–lawenforcementisweak!
• Ministry of Manpower is in charge to inspect all kinds of pressure vessels (incl.
Gas cylinders) on the market. Competence appears questionable since many such
installationscanbefoundthatareinverypoorandunsafeconditiondespitethefact
thattheyhavetherequiredinspectioncertificate.
• PPMB-MoTdoesnothavetheauthoritytodoborderinspections(atports,airports),
theauthorityiswithcustoms.
• BPOMinspectorstakesamplesfromthemarket.Ifproblemsarefoundtheproductsaretaken
fromtheshelvesandproduceristoldtoconductcorrectiveaction.BPOMcanwithdrawa
license(registration)foraproductandpublishthatthroughthemedia.BPOMdoesnot,
however,automaticallyinformotherinstitutions(e.g.MoI)ofwhatithasdone
• BPOMisnotauthorizedtowithdrawacompanylicenseandclosedownthefactory.
MoIhasthatauthority-butifitisnotinformedbyBPOM,thenthatauthorityisnot
likelytobeused.Sanctionsaredefined(MoJustice)butareusuallynotapplied.
V.3.4Accreditation
Accreditation comes from the Latin word credito--meaning to trust. Accreditation certifies the
conformityassessmentofproducts,systemsorpersonsonthebasisofacertainsetofcriteria.The
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accreditationprocessserves toverify thepreparednessandcapabilitiesof the testing,calibration,
inspectionandcertificationorganizations.Accreditationisanofficialrecognitionthattheorganization
ispreparedtocarryoutcertainactivitiesinaccordancewithcertaindefiniteconditions.
NationalAccreditationCommitteeKAN:Status,ResponsibilitiesandActivities
• TheauthorityofKANasaccreditationbodyforlaboratories,certification(products,
systems,personnel)andinspectionisbasedonPP102-2000andPresidentialDecree
No 78 – 2001. KAN is internationally recognized by theAsia Pacific Laboratory
Accreditation Cooperation (APLAC), International Laboratory Accreditation
Cooperation(ILAC)andInternationalAccreditationForum(IAF).
• KANdefinesandimplementspolicyonaccreditation,certification,inspectionbodies
andlaboratories
BadanNasionalSertifikasiProfesiBNSP:StatusandResponsibilities
• The“accreditationbody”forcertificationbodiesissuing“professionalcertificates”for
individuals(personnelcertification)BNSPworksbasedonPP23-2004andUU(law)
No13–2003.BNSPusesSKKNI(StandardKompetensiKerjaNasionalIndonesia)
asreferenceforcertification.
MSTQ-QUALITYACCREDITATION & CERTIFICATION
NationalAccreditation
Committee KAN
Badan NasionalSertifikasi Profesi
BNSP
works based on PP 23 - 2004and UU (law) No 13 - 2003
l
works based on PP 102 - 2000and Presideltial DecreeNo 78 - 2001
l
Accreditation - “Recognition of Competence”1. Laboratories (testing, calibration)2. Certification Bodies for : a. System Certification
(process), b. Product Certification, c. Certification of personnel
3. Inspection Bodies
Figure 9 : MSTQ-Quality accreditation & certification
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Union48
ObservationsrelatedtoKANandBNSP:
• DespiteitsinternationalrecognitionbyAPLAC,ILACandIAFthecompetenceofKAN
isnotoninternationalstandardlevel.Thereforetestreports,certificatesandinspection
resultsissuedbyKANaccreditedlaboratories,certification-andinspectionbodiesare,
infact,veryoftennotacceptedbyforeignuserssincethereisreasonabledoubtonthe
correctnessoftheresultsandverdicts.Userscannotbeforcedtoacceptconformity
assessment(CA)documentsandhavetherighttorequestCAtobeconductedbyan
institutiontheytrust.
• AccordingtotheagreementswithAPLAC,ILAC&IAFnoothersigningaccreditation
bodywillcarryoutaccreditationsinIndonesia.LaboratoriesoperatinginIndonesia
can therefore not choose to be accredited by other accreditation bodies to achieve
acceptancebytheinternationalbusinessworld.
• KANneedstoimprovecompetence(HR,assessorsincludingexternalassessorswho
infactareabout95%ofallKANassessorsinIndonesia).
• KANdoesnothaveaproperelectronicdatabaseandinformationsystem(includingof
courseasuitablesoftwaretool)topermitproperorganizationofitsworkprocess.
• KAN is part of BSN and therefore not independent. Regulator (BSN) and operator
(KAN)shouldbeseparatetoavoidanypotentialconflictofinterest.Onesuchconflict
appearstobethefinancialdependenceofKAN,whichobtainsitsbudgetthroughBSN.
• KANhasamassive,growingtaskbutverylimitedresources.
• Kanhascurrently34fixedstaffandthisnumberhasremainedstaticduringthelast
yearsdespiteconstantgrowthinthedemandforaccreditations.
• Income generated by accreditation services goes to the KAS NEGARA (national
treasure),90%isreturnedtoBSN–KAN.
• PriceschargedforKANservicesarefixedbytheMoFinancebasedoncostdatasupplied
byKAN.Thepriceappearstobesetwithonlyaverysmallmarginonoperatingcost.
• Revenuefromservices isabout50%of the totalbudgetusedforKAN.Remaining
50%comefromMoFviaBSN.
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• KANneedsmorefinancialflexibilitytoallowhiringofcompetentassessors.
• According to PP 102-2000 every institution conducting conformity assessment
accordingtoSNI(mandatoryandvoluntary)hastobeaccreditedbyKAN.Atpresenta
substantialnumberoflaboratories,certificationbodiesandinspectionbodiesusedfor
conformityassessmentarenot(yet)accreditedoroperateonascopethatisnotcovered
by their accreditation. For example the transport packaging inspection performed
undertheMinistryofTransportationisnotaccredited.
• KANalsoprovidesaccreditationstononSNIstandardslikeISO,JISetc.iftheyhave
thecapacityandcompetencetodoso.
• According to anASEAN agreement accreditation will be mandatory forASEAN
harmonizedstandards(voluntary&mandatory).
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Union50
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS1:ManyPhysical
Assetsin(Buildings,Equipment)exist
2:RegulatorySystemsinPlace
3:AvailableCompetence
4:BusinessGrowth
1:Notefficient2:Notproperly
coordinated3:Insufficient
implementation4:Traceabilitynot
fullyensuredinthevaluechain
5:MaintenanceofGOIfacilitiesnotensured
1:Useinformation2:Enhanced
Competencewillcreateconfidence
3:MakeUserfriendly4:InvolvePrivate
Sector5:CreateFullSingle
system
1:Growingworkload2:LossofCredibility
athome&abroad3:LossofBusiness
Opportunitiesfordomesticproducers
SWOTAnalysisoftheEQISystem
vI. assessInG The eqI sysTem
assessing The eqI system
VI.1Factorsbehindtheproblems
FactorOne:InstitutionalEgo
• Institutionsliveseparatelives;actionsarefocusedontheinstitution’sownsituation,
withlimitedattentiontowhetherthisfocusgeneratesdysfunctioninthesystem.
• Competitionandnotcooperationtendstoshapeinstitutionalbehaviour–effortgoes
intogainingmore“territory”(officiallysanctionedresponsibilities,moreresources)
fortheinstitution,evenattheexpenseofotherEQIinstitutions.
• Theprevailingperceptionseemstobe“zerosumgame”–thepossibilityofcreatinga
positivesumgame,whereeveryonecouldgain,isnotconsidered.
FactorTwo:InsufficiencyofSystemGovernanceAndStrategicPlanning
• Nohigherlevelauthorityappearstoexistwithpowerstoensurethatinstitutionswork
Table 1 : SWOT Analysis of the EQI System
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withinclearlydefinedspheres,andcooperateratherthancompete.
• Itseemsdifficulttoidentifyastrategicapproachwhichcouldintegratethedevelopment
of EQI with other objectives of Indonesia. This complicates the task of strategic
planninginEQIitself.
• StrategicVisionsinkeyrelatedfields,suchasTradePolicy,arethemselvesnotfully
articulated.
FactorThree:ConstraintsOnAllocationOfHumanResources
• Civil Service rules and procedures appear to limit the possibilities for significant
interchangeof personnel across institutions and therefore limit the development of
systemwideknowledge.
• Withininstitutions,relativelyearlyobligatoryretirementregulationsmaylimitthefull
useoftheskillsofexperiencedandqualifiedstaff.
These factors probably exist to some extent inmost countries.But theASEANexperience
reviewed earlier suggests that Indonesia has significant problems compared with its major
partnersandcompetitors.Aclearstrategicvisionisessential,butishardtodiscern.Thereare
gapsinkeyareasofpolicy.Institutionsdonotseethemselvesaspartofaconnectedsystem.
Thecharacterofgovernmentadministrativerulesdoesnotsupporttheoptimumdevelopment
ofofficialinstitutions.Alloftheseare“soft”issues,inthattheydonotrefertoinadequacies
of buildings, equipment andothermaterial resources.Yet experienceof somanycountries,
includinginASEAN,demonstratesthatchangingtheperceptionsofinstitutionsandindividuals
isfrequentlyfarmoredifficultthansolvingthe“hard”issues.Indonesia’sneighbourshaveall,
intheirownwaysandwithintheirowncultures,engagedinsuch“soft”changesformanyyears
andarenowreapingtherewards.Indonesiaitselfhastofollowasimilarprocess.
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Union52
Based on the gap analysis, EQImodels applied in competing exporting countries, and the
ASEANregionalstrategiesintermsofEQIintegration,theavisionforanimprovedIndonesia’s
EQIsystemisdesigned,whichtakesintoaccountthecountry’sinstitutionalrealities,export
priorities,capacityconstraintsandcompetitivenesslevel.
VII.1TheComplianceChallenges–InternationalandEURegulations
InternationalandEUregulationsaredevelopedwiththeaimtoensuresafetyforconsumersand
latelymoreandmorewiththeintentiontoreducenegativeimpactsontheenvironment.
vII. vIsIon
vision
CHALLENGES - INTERNATIONAL & EU REGULATIONS
GMPFSMS QMS
HACCP
IEC
UN/ECE
SA
EMSOHSAS
FLEGTREACH
WEEE
PaPW 94/62 EC67/548 EEC
88/379 EEC
RoHS
GAqPGAcP
GHdP
SAFETY & ENVIRONMENT
PROCESS ORIENTED
Figure 10 : Challenges-international & EU regulations
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VII.2TheVisionforIndonesia’sEQI
VII.3WhatTheComplianceSystemMustHave
“InordertooptimizetheproductivityoftheR&DInstitutionsattheMinistriesaCoordinating
Institutionisrequiredwhichidentifiesthetechnologicalneedsandseekstechnicalsolutionsin
aunifiedwayofthinking.”
VISION FOR INDONESIA’S EQI“ Competent EQI System Actor provide User Friendly service to help
Producers meet Compliance Requirements in Export Markets ”
TechnicalCompetence
l Ttrade Policyl Legal Frameworkl Regulatory Frameworkl Institutional Structurel Information Systems
StrategicManagement
l Properly built and maintained laboratoriesl Up to date, well maintained equipment & methodsl Competent scientific and technical staffl Traceability in all areas of the value chainl Involvement of the private sector
WHAT THE COMPLIANCE SYSTEM MUST HAVE ?
Competence
InformationNetworks to
keep up to date
Legal andRegulatoryFramework
Policy andInstitutionalFramework
User FriendlyMethods
CoordinationFunctionfor the
PROCESS
Figure 11 : Vision for Indonesia’s EQI
Figure 12 : What the compliance system must have?
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Union54
(Untuk meningkatkan produktivitas litbang di kementerian, perlu pembangunan kelembagaan
agar jajaran yang mengetahui kebutuhan teknologi dengan jajaran yang menemukan solusi
teknologi berada dalam kesatuan daya pikIr) (Source: RPJMN, Buku II BAB IV)
VII.4Traceability:TheFundamentalFeatureofanEfficientEQISystem
TheindispensablerequirementwhichtheEQIsystemmustsatisfyis traceabilitythroughout
thesystem.
VII.5TheFourKeyDimensionsoftheVision
Toreachfulltraceability,competence,informationandprivatesectorinvolvementareessential.
Hence these four things are the objectives of the vision. They are shown in the following
diagrams.
TRACEABILITY IN THE VALUE CHAIN
GAP QMSHACCP EMS
GHdPGHdPGMPHACCP
GMP GHdP
Farms
Vessels
Mines
Forests Suppliers Suppliers Suppliers
Pre-Processing
CollectionHandling
DistributionPackaging
Transport&
Storage
Handlingand
DistributionProcessing
Accreditation
Inspection Testing Certification
MetrologyAccountingCustomsLaw EnforcementLogisticLand OwnershipAdministration
Figure 13 : Traceability in the value chain
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VII.5.1Traceability
VII.5.2Information
Coordinationandahighergradeofefficiencycanbeachievedbycollectingandanalyzinginformation
thatthencanbeprovidedasproducttoallactors,publicandprivateinthevaluechain.
TRACEABILITY : THE BASIC KEY FOR EQI
l Ensure Traceability among suppliers, collectors and processorsArea Four : Traceability in the value chain
l Ensure traceability of calibration & test results to national reference laboratories with proficiency tests
l Ensure Traceability of national reference laboratories to intarnational reference laboratories with proficiency test
Area Three : Provision of proficiency tests to ensue traceability of calibration & test results
l Ensure traceability of national physical & chemical standard to industrial metrology
Area Two : Provision of network to ensure traceability of (E) QI actors to national standards
l Ensure reliable physical & chemical metrology traceable to international standards
Area One: Provision of national reference standards traceable to international standards
Area 1Area 2 Area 3 Area 4 OBJECTIVE to ensure traceability
of all activities in the value chain(National & International
INFORMATION: THE MISSING LINK IN EQI
l Use information to provide dients with a clear picture of what the institutions in the EQI system offer
l Development of information system (HELP DESK) which give firms the opportunity to develop quality based trade to the maximum
Area Three : Information for Outreach
l Sharing of data bases among institutions doing similar work to avoid duplication, increase efficiency
l Share information to detect gaps in service provision, ensure that user need are met
Area Two : Information to Strengthen System Coordination
l Online system for tracking service provision and management of the workloadl Data bases to permit planing of future needs
Area One : Informatian for Internal Institutional Improvement
Area 1Area 2
Area 3 OBJECTIVE to maximise the use of information in achieving system
improvement of EQI
Table 3 : Information : The missing link in EQI
Table 2 : Traceability : The basic key for EQI
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Union56
VII.5.3Competence
CompetenceofallactorsinthevaluechainisrequiredtoensureaproperlyfunctioningEQI
system that provides confidence for all users, national and international. Test laboratories,
Inspection and Certification bodies are accredited to demonstrate their competence. It is
thereforeessential that thecompetenceof thehighest level in the system, theaccreditation,
issufficienttoassessandensurethecompetenceoflaboratories,inspectionandcertification
whichwill then provide reliable results and verdicts on products and systems in the value
chain.ThisappliestoGoodPracticeandHygieneSystemsforfarming,fishing,handlingand
manufacturingaswellasforproductionofcomponents,productsandpackaging.Itisessential
thattheverdictsgivenbylaboratories,inspectorsandcertifiersareactedupon.Ifthatdoesnot
happen,thesystemisagainrenderedsuspect.ThesituationofIndonesiatodayisweakwith
regardtoimplementation.
VII.5.4PrivateSectorInvolvement
Involvementoftheprivatesector,usersaswellasserviceproviders,willenhanceknowledge,
createasenseofownershipandreducetheburdencarriedbythepublicsector.Standardisation
is the process of establishing technical standards that is carried out based on consensual
COMPETENCE: THE KEY FOR CONFIDENCE
l Ensure awareness for potential impact of results & verdicts for clients and the publicl Create professionalism to ensure reliable resultsl Ensure regular participation in proficiency tests for self control
Area Two : Create awareness and sense of professionalism in laboratories,inspection bodies & certification bodies
l Ensure sufficient capacity (HR, data & informasi. infrastructure etc)l Ensure sufficient competence of assessors
OBJECTIVE to maximise the Competence of laboratories, inspection
& Certification in EQIArea 1Area 2
Area One : Provision of competent & reliable accreditation scheme
Table 4 : Competence the key for confidence
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VII.5.5LinkingtheDimensionsoftheVision
agreementoftheinterestgroupsaffectedbythegivenissue.Itisthereforeessentialtoinvolve
theprivatesectortoachievethemaingoaltoeliminatetechnicalobstaclestotrade,enhance
technicalcooperation,increasesuitabilityofproducts,systemsandservicesandreducecostfor
producers,suppliersandconsumers.
INVOLVEMENT: THE MISSING LINK TO THE USERS
l Create reliable channel for feedback from corporate & public sectorl Create and implement procedures to ensure feedback is analysed and taken into accountl Ensure sense of ownership through involvement and success
Area Thee : Provision of procedures to ensure involvement of stakeholders
l Establish reliable means of information to ensure availability for all stakeholders in a timely manner
l Ensure information is understandable and establish hotlines for questicns
Area Two : Provision of network to ensure information is distributed
l Ensure users (industry) understand the value of standards and technical regulations for their businessl Ensure users (industry) understand the value of traccobility for their business l Create a sense of ownershipl Ensure awareness of consumer groups
Area One : Create awareness on the value of (E) QI facilities
Area 3 OBJECTIVE to maximise the involvement of the corporate & private
sector in EQI
Area 2
Area 1
OBJECTIVES are LINKED
l Confidence on conformity assessment for products
INFORMATION
COMPETENCE
PRIVATE SECTORINVOLVEMENT
TRACEABILITY
INFORMATION COMPETENCE PRIVATE SECTORINVOLVEMENT
TRACEABILITY
requires
requires
requires
requires
provides provides provides provides
l KAN provider info on
competent service providers
l Servicel Knowledge(SNI)l product scope
l Assessorsl Calibrationl test, Inspectl Certify
l Calibrationl Testingl Supply Chain Management
l Trainingl Consultancy
l Metrology (calibration, CRM)l Proficiency Tests
l Methodsl Standardsl Regulations
l Internationall Nationall Metrologyl Value Chain
l Regulationsl Standardsl Supply Chainl Service
l Equipmentl Value Chainl Products
l Testingl Inspectionl Calibrationl Conf. Assessment
Table 5 : Involvement : The missing link to the users
Table 6 : Objectives are linked
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Union58
AstrategicroadmapforIndonesia’sEQIsystemimprovementmustshowwhatneedstobedone
toimplementthevision.
vIII. RoaDmaP
Roadmap
WHAT THE ROADMAP COVERS
CHOOSING THE DIRECTIONS FOR CHANGE
THE CORE AREAS FOR ACTION
INSTITUTIONS AND INDICATORS
l Issues and Routes for Changel National Priorities and the Vision for Indonesia’s EQI
l Strategic Managementl The Information Inventoryl Traceabilityl Competencel Private Sector Involvement
l The Agencies Involvedl Monitoring and Indicators (OVIs)
Figure 14 : What the roadmap covers
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VIII.1.ImplementingChange
Successfulmanagementofchangemustkeepaclearsightofwhatistobeachieved,andthekey
obstacleswhichmustbeovercome.Thediagramsummarisesthepoint.
ACHIEVING EQI EFFICIENCY DURINGPOLITICAL TRANSITION
l but the institutions do not work together
l Sharing capabilities, equipment and knowledge
l because of the ever changing balance of responsibilities among provinces and the central government
The Fundamental Message-most of the elements exist
The Changes required to close gaps and remove contradictionsmust come from the Intitutions
This will be hard
VIII.1.1RoutestoEfficiencyIncrease
• TheTopDownRoute.
Provides a single authority for change, states a direction. Requires intensive
implementationeffortandstrongcommunicationwithstakeholders.
• TheExternalFacilitationRoute.
OutsideGroupshelpinstitutionalinsiderstocreatechangeattheleveloftheoperating
institutions.
• TheInternalRoute.
Organisationsdoitentirelyontheirown,withtechnicalstaffleadingtheway.
The routes are notmutually exclusive. In practice, it is almost certain that allwill have to
be pursued simultaneously.The speed at which results can be achievedmay be in inverse
proportiontotheeffectoftheresults.Forexample,itmaywelltakeaconsiderabletimebefore
Figure 15 : Achieving EQI efficiency during political transition
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Union60
politicalresults(thetopdownroute)canyieldanythingtangible–butwhenthathappens,the
impactscanreverberatethroughthesystem.
VIII.1.2TheActorsforChange
The identified routespoint to thekeygroupsofactorswhocanbringaboutchange.Within
Indonesia,therearethreeprincipalsetsofactors:
(1) PoliticalDecisionMakers:theycanalterthelegal,institutionalandfinancialparameters
withinwhichtheEQIsystemoperatesinsideIndonesia,andcanhelptoshapethetrading
environmentinwhichfirmsoperate(theexportspace).
(2) EQIInstitutions:it istheywho,byembracingasystemefficiencydrive,canalterthe
situationontheground.
(3) PrivateSector:userfirmsoftheEQIsystem,whileperhapsnothavingdirectpower,can
articulatetheirneedsandpushthesystemtowardsprovidingwhatisrequiredtoassist
trade.PrivatefirmswhichareEQIservicesupplierscan themselvesplayan important
roleinmeetingthoserequirements.
Maximumchangeimpactwillbeachievedwhenthethreesetsofactorsworktogetherandin
thesamedirection.Thisentailsbuildingtheirconfidenceineachother,andrecognisingthat
eachhasanessentialroletoplay.
TheEUcanalsobeapositiveactorforchange.ThismeansthatoverallEUtradepolicytowards
Indonesia,whichisconductedthroughBrussels,shouldbesetinapositive,exportenhancing
directionforIndonesia.ItalsomeansthatspecificEQIassistancecanbeprovidedtohelpthe
variousIndonesianactorsperformtheirchangeenhancingroles.Thelatterkindofsupportwill
comethroughTSPIIandotherprogrammeswhichaffecttrade.
Thereis,tosomedegree,afitbetweeneachsetofactorsandthechangesinstrategicmanagement
andtechnicalcompetencewhicharerequired.PoliticalDecisionMakersworkatthelevelof
strategicmanagement,inthesensethattheireffortsshapetheparameterswithinwhichother
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actorsmustoperate.Butpoliticaldecisionscannotbetakeninavacuum;theyrequireinputs
fromtheothergroups.EQIinstitutionsfunctionmostlywithrespecttooperationalmatters,so
technicalcompetenceissuesaretheareaswheretheyshouldfocus.Buttheymustalsotakecare
toconductgoodstrategicmanagementoftheirowninstitutions,andofthesystemasawhole.
That iswhycooperation among them is crucial.Atpresent thePrivateSectorhasnotbeen
accordedenoughspacetomakeitsviewsfeltandensurethatitsneedsareheard.Asthatspace
increases,soitalsocanaddtotechnicalcompetenceandstrategicmanagement.
TheEUmustworkasasupportentity,beingreadytoofferassistancewhereitcanandaccording
toavailability.
VIII.2.ToolsforChange:AnEQIInventoryandInformationManagementSystem
Themostsuitablepracticaltooltocreatebothcooperativeprocessesandefficiencyimprovement
istheconductofanindepthEQISystemInventory.Todothismeansstartingoutbydefining
whatisneeded,andfindingoutwhatIndonesiaactuallyhas.
Thetwosidesofthebalancesheetareshowninthediagram.
INVENTORY - COLLECT INFORMATION
Define what we need Find out what we have
Export sectors subject to CA &CA services required
Indonesian RegulationsTest & calibration labs
l Number of exporters, type of
products and services required
l Applicable International
standadrs & regulations
l Testing methods, allowed limits
& required detection limis
l Required process CA (GMP, GAP, GHdP,
GLP, HACCP,QMS, etc)
l People involved (education, experience,
training, certification)
l Methods & detection limits
l Equipment available
l Authorized personnel
l Traceability procedures
Certification bodiesl Methods (products & systems)
l Authorized personnel
Inspection bodiesl Methods (products & systems)
l Authorized personnel
ACCREDITATION STATUS
Table 7 : Inventory-collect information
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Union62
Thetableincludesreferencesto:
(1) Theinternationalregulatorystandardsforprocesses,productsandmanagementsystems,
whichIndonesianexportshavetomeet.
(2) AninventoryoftheIndonesianbusinessesengagedinexport.
(3) AninventoryofthetechnicalEQIinstitutions.Hencetheinformationsystemdescribed
here covers not only the technical resources of Indonesia, but also the international
regulatorysystemasitaffectsexportsaswellasapictureoftheIndonesianexportsector.
Itfollowsthatsomeoftherequiredinputstotheinformationsystemcomefromwithin
EQIwhileotherswillhavetobeobtainedfromothersources,bothIndonesianandforeign.
The institutional participants in the system are shown in the chart below. It covers some
internationalgroupsaswellastheIndonesianinstitutions.
VIII.2.2HowIndonesianInstitutionsCanCreateTheInformationSystem
Themajorstepstobetakenare:
• IdentifyanInformationManagementBody-IMB.
INVENTORY INFORMATION SYSTEM
InfoManagement
Body
BPPT
BPOM
MoFo
MoPW MoTr
MMAF
MoE
Mol
MoT
MoABSN
LIPI
OIMLWTOISO
APLAC
ILAC
BIPM
DINAS
InspectionCertiication
Private
Testing & Calibration
Figure 16 : Inventory information system
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• Ministries&AgenciesprovideinformationonalltheirConformityAssessment(CA)
facilitiestoIMB.
• Ministries&AgenciescollectinformationfromDINASinrelatedfieldsandprovide
informationtoIMB.
• KANprovidesdataonaccreditedCAfacilities(GoI&private)toIMB
• IMBbuilds and operates database and provides information to all participants and
potentialusers.
• Ministries,agencies,BSN/KANbuildDatabasesandHelpDesksforusers
• IMBtoencouragebusinessassociationsandprivateQIserviceproviderstoparticipate
intheInformationSystem.
VIII.2.3.ProductsOfTheInformationSystem
PRODUCTS OF THE INFORMATION SYSTEM
EFFICIENCYl Optimum use of existing facilities in the systeml Investment Planningl Optimum Use of Personnell Choice of reference laboratoriesl Traceability improvements
IDENTIFICATION OF POTENTIAL SCOPE FOR CLIENTS EXPANSION
l Consultation regarding the possibilities for joint service provision l Subcontracting among all institutionsl Working with private service providersl Data bank(s) for Users information and CA service facilities
COMMUNICATION, IMAGE BUILDING AND MARKET CREATION
l Commercialisation of information products (publications, videos, etc...)l Awareness raising within indonesial Image building fo external markets (Commercial Attaches, trade fair etc...)
TheinformationsystemcanprovideanumberofproductsforCAserviceproviders,publicand
private,andforproducers,suppliersandexporters.
Figure 17 : Products of the information system
Indonesia’s Export Quality Infrastructure
A study conducted by DFC S.A.U for the European Union64
PRODUCTSTHATHELPEFFICIENCYOFTHEEQISYSTEM
Detailedanalysisoftheinformationwillmostlikelyshowthatutilizationofavailablecapacities
isnotoptimal.Theinformationcanbeusedtoplanactivitiesandfurtherinvestmentsinamore
efficientmanner.TheInventorywillprovideinformationabouthighlyspecializedlaboratories
that would likely be able to serve as reference laboratory for selected tests on particular
products.Theinformationcouldbeusedtocreateanetworkofnationalreferencelaboratories
fortheentireindustry.Effortscouldthenbemadetocloseexistinggapsandtoupgradeand
ensurecompetence.Selectednationalreferencelaboratoriescouldthenensuretraceabilityto
international reference laboratories for their particular area though regular participation in
PT and conduct PT for all national laboratories (public, service providers, users) to ensure
traceabilityonnationallevel.Datawillshowwhichlaboratoriesconductwhichcalibrations,
testsandanalysis.Basedonthisinformationitwillbeeasytoselectallpotentialparticipantsfor
particularPTschemes.Alllaboratoriescanthenbemonitoredregardingregularparticipation
andresultsinPTs.
PRODUCTSTHATFACILITATESYSTEMCOOPERATION
CAfacilitiesshouldbeabletoselectpotentialcooperationpartnersforsubcontracting.Private
serviceprovidersaremuchmoreprofitorientedthanpublicinstitutions.However,theyarealso
eagertocoverawiderangeofservicesandsatisfytheircustomerexpectations.Privateservice
providersarethereforeinterestedtouseavailablefacilitiesthroughsubcontractingratherthan
takingtheriskoflargeinvestmentintestingfacilities.
PRODUCTSTHATHELPPRODUCERS/EXPORTERS
Users need information on applicable technical requirements for export destinations and
available facilities forCAaccording to these requirements.Thedatabank(s) couldbeused
totomakeavailablereliableinformationforallstakeholdersinatimelymanner.HelpDesks
andhotlinesforquestionsofuserscouldbeestablished.Thedataanalysisshouldalsoprovide
information of resources and production capabilities in relation to expected export market
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demand. Promising product sectors can then be selected and related development plans
established.Thesedevelopmentplansshouldincludeallaspectsofthevaluechainincluding
requiredprocess-andproductcertificationrequirements.
VIII.3.TraceabilityInMetrology
VIII.3.1StrategicManagement
TheKeyDecisionsare:
• CreatetheNMIforinstancebystrengtheningthestatusofKIM-LIPI.
• EstablishReferenceInstitution(s)forchemicalmetrology(MIC)andNetworkofCRM
providers.
• DevelopandenactarevisedNationalMetrologyLaw.Revisionisrequiredtorepresent
the updated status and functions of NMI and MIC, and therefore modernize the
Indonesianinstitutionalstructureinscientificmetrology.
• RedefinethetasksofLegalMetrology.
• SetrealisticobjectivesofLegalMetrologyforthenextdecade.
• ModifyandImplementLegalMetrologyPlan.
• Establishcoordination&cooperationbetweenscientific/technical&legalmetrology.
VIII.3.2.HowIndonesianQIInstitutionsCanImproveTraceabilityInMetrology
ThePrinciplesStepsare:
• Establishcomprehensivesystem(s)andschedulesforPToncalibrationandchemical
metrology.
• ImproveorganizationandevaluationofPT.
• Establishtrainingmodulesoninterpretationandutilizationofcalibrationcertificates.
• Establishtrainingmodulesonqualityassuranceinlaboratories.
Indonesia’s Export Quality Infrastructure
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VIII.4.HowIndonesianQIInstitutionsImproveTraceabilityInCA&ValueChain
TheIssuestobecoveredare:
• ReferenceLaboratories:Setthemupforselected(product)sectors.
• PT:Establishcomprehensiveschedulesforalllaboratories(incl.private)forselectedsectors.
• PT:Organizationandevaluation.
• PT: Establish training modules on interpretation and utilization of PT evaluation
resultsasbasisforcorrectiveactions.
• CRM:Improveprovisionanddistribution.
• CA test methods: Establish reference list, methods and criteria for inspection and
certificationforselectedsectors.
• Source Identification :Establish trainingmodules; select suitable service providers
(GoI&private)fortraining;andconductTrainingofTrainers(ToT).
• PilotProjects:Selectsuppliergroupsandconducttheprojects.
VIII.5.HowIndonesianQIInstitutionsImproveandEnsureCompetence
There is one StrategicDecision to be taken - separateKAN fromBSN.This separation is
toensure therearenopotentialconflictsof interestandprovidefinancial independenceand
flexibilityforKAN.Itmightevenbeconsideredtoallowmoreinvolvementoftheprivatesector
inKAN.ItcannotbeoveremphasizedthatKANisacriticalinstitutioninthesystem,especially
forinternationalrecognition.Itsinstitutionalpositionmustthereforebestrengthened.
Aseriesofimprovementsarealsorequired:
• Improve accreditation system through increased capacity (IT& staff) ofKANand
increasednumber,scope&competenceofKANassessors.
• Establish training modules on quality assurance in laboratories (determination of
detection limits,measuring uncertainty, verification& interpretationof test results,
statisticalmethods).
• Increase scope and competence of laboratories, inspection and certification bodies
buildingonco-operationandsubcontracting.
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• Ensure theawarenessof responsibilities ofCAproviders (managementandstaff)
ofthelikelyconsequencesandimpactsoftheirresultsandverdictonclientsandthe
generalpublic.
• ProvidetrainingmodulestoimproveknowledgeofIndonesiansuppliers(SME)on
GAcP,GAqP,GMP,GHdP,HACCPforselectedsectors;thenconductToTcoursesfor
suitableserviceproviders(GoI,associations,private).
VIII.6HowQIInstitutionsIncreasePrivateSectorInvolvement
Mapping The Private Sector
• EstablishdatabaseandprocedurestoincludetechnicalexpertiseofPrivateSector.
Strengthening Service Provision:
• ShareinformationandcreateclimateforcooperationbetweenPublicandPrivateQI
ServiceProviders.
• InitiatetwinningandincreasedelegationofCAactivitiestoPrivateSector.
Developing Technical Regulations and Standards
• EncouragePrivateSectorparticipationintheformulationofTRandstandards.
• ProvidecapacityforinterpretationandapplicationofTRandstandards.
Creating Real Time Information
• Consult in depthwith the Private Sector (service providers and userswith special
attentiontoSMES)ontheirneedswithregardtoinformationconcerningstandards-TR
andrelatedbarrierstotrade;onthebasisofperceivedneeds,createappropriateuser
friendlyhelpdesks,hotlines.
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Ifchangeisoccurring,itmustbemeasured.Todothat,threethingsareneeded.
• First,apictureofthestartingposition(thesocalled“baseline”situation)isneeded.
• Second,theconstructionofindicators–quantitativeorqualitative–whichcanmeasure
alterationstotheoriginalpicture.
• Third,usingtheindicatorsasabasisforcorrectiveactions(whererequired).
Thediagrambelowsummarisestheprocess.
Indicatorsareusuallydefinedtoallowtheevaluationofchanges.Onesuitableindicatorwould
betheexistenceofatradepolicywhichcan,atpresent,notbefound.Theestablishmentofan
InformationManagementBodyandtheamountofdatacollectedwouldalsoindicatedevelopment
asexpected.Anindicatorforefficiencyoflaboratorieswouldbetheaverageutilization(%)of
Ix. monIToRInG ChanGe
monitoring Change
MONITORING CHANGE
l Baseline Measures are needed
l These can only be created from within the system
l Once that picture is there, you can discover :l (1) whether you have equipment which each other could usel (2) whether this would allow you to carry out tasks that are currently not
donel (3) Exactly what you might need in the future, and how additional resources
could be put at disposal of whole system rather than just a single institute
Figure 18 : Monitoring change
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laboratoriesbeforeandafteractivitiesonefficiencyimprovementhavebeenimplemented.The
existenceofcomprehensiveschedulesforProficiencyTestingandthegradeofimplementation
ofthesescheduleswouldalsoprovideinformationonthestatusofimprovement.
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ThepaperhasshownthatIndonesiahasmostofthetechnicalresourcesinplacewithwhichto
achievefullcompliancewiththefastchangingfrontierssetbyTBTandSPSininternational
markets.Thekeystepstoimprovementarefortheexistinginstitutionstoworktogetherasa
system,somethingwhichoccurscurrentlyonlytoaverylimitedextent,andtherebytopursue
thegoalofsystemefficiency.Giventheheavyworkloadpressuresofseveralpartsofthesystem,
andonparticular“nervepoints”ofthesystem,suchasaccreditation,therewillbeneedover
timeforadditionalresourcestobetargetedtowardstheseareas.Butthecriticalinitialstepis
mobiliseandutiliseeffectivelytheresourcesalreadyinexistence.
Thoseresourcesarenotconfinedtopublicsectorinstitutions.AnumberofQIserviceproviders,
mostly thoughnotentirelyaffiliatesofwellknown internationalfirms,operate in Indonesia
andpossessimportantlaboratoriesandskills.Theseentitiesthereforeformpartofthe“capital
stockinQI”whichexistsinthecountry.Theymustbeinvolvedtoamuchgreaterextentsothat
thebestusecanbemadeofeverythingwhichexists.TheseprivatesectorQIserviceproviders
operateonaprofitbasis–theyselltheirservicestoprivateproducersandexporters.Hencethey
possessknowledgewhichisnotonlyofatechnicalkind;theyalsohaveanacutesenseofwhat
thedemand,actualandlatent,forQIservicesreallyis.
Withinthepublicsectorinstitutions,this“feelforthedemandpulse”islittlepresent.ThreeoftheBalai
BesarundertheMinistryofIndustryhavebeeneffectivelycorporatised,undertheBLUprocess,and
mustthereforeobtainalargemajority(around80%)oftheirrevenuethroughsellingtheirservices.
Theseentitiesdohaveknowledgeofthedemandrequirementsintheirproductareas.Buttheyarestill
onlyasmallminorityofthetotalsetofpublicsectorinstitutions.Indonesiaisonlyatthebeginning
x. ConClUsIons anD ReCommenDaTIons
Conclusions and Recommendations
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ofthegrandpartnershipofpublicandprivateQIproviderswhichwasinitiatedincountriessuchas
Malaysia,SingaporeandThailandsome15yearsago.PrivatesectorinvolvementintheQIprocess
thereforerepresentsamajorchallengeforthefuture.
ThepaperproposesathoroughsysteminventoryofQIasakeytoolforacceleratingtheprocess
ofchange.GiventhatmodernTRandstandardssettingactivitiesfocusonprocessratherthan
product, theachievementof full traceability is theprincipleonwhicha soundsystemmust
bebuilt.Competenceateverystageof thevaluechain isanecessary, thoughnotsufficient,
conditionfortraceabilitytobethere.Hencethepaperrecommendsaseriesofdetailedsteps,at
alllevelsoftheprocess,throughwhichcompetencecanbeachieved.
TheInformationInventoryshouldbeconductedthroughtheparticipationandcooperationof
all institutions, public and private,which are part ofQI.The purpose is for them to share
informationonresources,requirementsandcooperationpossibilitieswhichcanleadtooptimum
useofthesystemcapabilities.Thesystemshouldbemanagedbyacompetent,neutralbody
whichhasthefunctionsof:collatingandanalysingtheinformation;transformingthematerial
intoinformationproductswhichcanassistallparticipantsandusersoftheQIsystem(meaning
especiallytheprivateproducers);distributingtheinformationproductsthroughtheappropriate
channels,withinIndonesiaandabroad;andpointingtotheremaininggapsandrequirements
foradditionalresources.
AsmoothlyfunctioningInformationSystemforQIwillcertainlytakesometimetocreate,and
willbeagradual,andmutual,confidencebuildingprocessamongallparticipantsandusers.It
wouldbenaïvetosupposethatinstitutionswhichhavemaintainedaconsiderabledistancefrom
eachotherovermanyyears,andwhichtendtocompeteratherthancollaborate(aconclusion
whichholdswithininstitutionsaswellasacrossthem)wouldquicklylearntoworkwitheach
other.Butiftheprocessisbegunwithcaution,thenitwillgathermomentum.
The paper therefore deals primarily with a “bottom up” approach to improvement and
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compliance.Thetechnicalinstitutionsthemselvesareperceivedastheagentsofchange,andin
chargeofitsmanagement.Thepaperalsorecognises,however,thatIndonesiaisinthemidstof
acomplexandextendedperiodofpoliticalchange,theendpointsofwhicharethemselvesnot
knownwithanycertainty.Inthisprocess,therearesomechangeswhichitwouldbedesirable
tomake“fromthetop”,andwhichinfactcanonlybemadeatthatlevel.Theseinclude:policy
changes(especiallywithregard to tradeandanationalqualitypolicy); institutionalchanges
(suchasthecreationofanNMI,aclearerseparationofKANfromBSN);andlegalchanges(a
newNationalMetrologyLaw,forexample).
Yetthese“topdown”improvementsdonotcoverallthatisrequiredfromthetoplevel.One
ofthepervasiveremnantsoftheearlierstructureforQIistheoverlappingresponsibilities,the
confusionaboutwho is truly inchargeofwhat,whichcreatespermanentuncertainty in the
mindsofusers,aswellascreatingwastefuluseofresources.Decisionstoclarifythismustbe
made.TheQIsysteminstitutionscanthemselvesproposethesechanges,andwillbeinabetter
position todosoas the Information Inventoryproceeds.But thedecisions themselvesmust
ultimatelybetakenbyhigherauthorities.
Anycomplexprocessofefficiencyimprovement,assetoutinthispaper,willleadbothtoresource
reallocationneeds,andtotheidentificationoftheactivitieswhichrequireadditionalinvestment.
ThecurrentsituationinIndonesia,especiallyrelatingtocivilservicerulesregardingswitchingof
staffacrossMinistriesandinstitutions,andthemovementofstaffwithininstitutions,imposefar
toomuchrigidityinthesystem.Theyareabarriertoefficiency,andconsiderationshouldbegiven
tomakingthemmuchmoreflexible.Atthesametime,thefactthatQIinstitutionsarepublic,
andderivetheirrevenueforthemostpartfromtheMinistryofFinance,meansthatadequate
allocationsoffundsdependonthepersuasivenessofthecasewhichismadeforsuchallocations.
Within Indonesia there does not seem to be any ministry or institution which can currently
“championthecase”forproperresourceallocation.UntilQIisgivensufficientimportanceatthat
level,thereisalwayslikelytobeadistinctlysuboptimalsituation.
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ForeigndevelopmentpartnerscanprovidearangeofresourceswhichcanhelpIndonesiato
carrythroughthetransformationprocessandachievetheworldclasscomplianceforwhichthe
countrystrives.Agreatdealhasbeenaccomplishedovertheyears,andIndonesiaisnowon
thethresholdofmakingthebreakthrough.Ithastheresources,ithastheskills–whatisnow
neededisthedeterminationtoworktogethertoachievethegoal.
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TermsandInstitutionsrelevantfortheQualityInfrastructure
APLAC-AsiaPacificLaboratoryAccreditationCooperationhttp://www.aplac.org
APLAC is a cooperation of accreditation bodies in the Asia Pacific region that accredit
laboratories,inspectionbodiesandreferencematerialproducers.
APMP-AsiaPacificMetrologyProgrammehttp://www.apmpweb.org
APMP is a grouping of national metrology institutes (NMIs) from theAsia-Pacific region
engaged in improving regionalmetrological capability through the sharingof expertise and
exchangeoftechnicalservicesamongMemberlaboratories.APMPisalsoaRegionalMetrology
Organization (RMO) recognized by the InternationalCommittee forWeights andMeasures
(CIPM) for thepurposeofworldwidemutual recognitionofmeasurement standards andof
calibrationandmeasurementcertificates.
BIPM-Bureauinternationaldespoidsetmesureshttp://www.bipm.org
TheInternationalBureauofWeightsandMeasuresistheEnglishnameoftheBIPM,astandards
organisation,oneofthethreeorganizationsestablishedtomaintaintheInternationalSystemof
Units(SI)underthetermsoftheConventionduMètre(MetreConvention).
CEN-EuropeanCommitteeforStandardizationhttp://www.cenorm.be
Foundedin1961bythenationalstandardsbodiesintheEuropeanEconomicCommunityand
EFTAcountries,CENiscontributingtotheobjectivesoftheEuropeanUnionandEuropean
EconomicAreawith voluntary technical standardswhich promote free trade, the safety of
GlossaRy
Glossary
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workersandconsumers,interoperabilityofnetworks,environmentalprotection,exploitationof
researchanddevelopmentprogrammes,andpublicprocurement.
COMPETENTAUTHORITY:
AbodyappointedbytheEUwithauthoritytoactonbehalfofanEUmemberstate(s)toensure
thattherequirementsofselectedEUdirectivesaremet
EUROMET-EuropeanMetrologyhttp://www.euromet.org
IEC-InternationalElectrotechnicalCommissionhttp://www.iec.ch
ILAC-InternationalLaboratoryAccreditationCooperationhttp://www.ilac.org
ILACisaninternationalcooperationoflaboratoryandinspectionaccreditationbodies.
IMEKO-InternationalMeasurementConfederationhttp://www.imeko.org
ISO-InternationalOrganisationforStandardizationhttp://www.iso.ch
ISOistheworld’slargestdeveloperandpublisherofInternationalStandards.ISOisanetwork
ofthenationalstandardsinstitutesof163countries,onememberpercountry,withaCentral
SecretariatinGeneva,Switzerland,thatcoordinatesthesystem.
ITU-InternationalTelecommunicationUnionhttp://www.itu.int
NSWNationalSingleWindow
A National Single Window NSW is an electronic system that facilitates trade, increase
efficiencyoftheGovernmentdeliverysystemandprovidebenefitstoallmembersofthetrading
community,includingGovernment
NOTIFIEDBODYec.europa.eu/enterprise/newapproach/nando/
NotifiedBody isaConformityAssessmentBody(CAB)for the regulatedarea.Notification
isanactwherebyaMemberStateinformstheCommissionandtheotherMemberStatesthat
abody,whichfulfils therelevantrequirements,hasbeendesignatedtocarryoutconformity
assessmentaccordingtoadirective.NotificationofNotifiedBodiesandtheirwithdrawalare
theresponsibilityofthenotifyingMemberState.Thenotifiedbodymusthaveitsheadofficein
oneoftheEuropeanmemberstates.
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OIML-InternationalOrganizationofLegalMetrologyhttp://www.oiml.org
The International Organization of LegalMetrology (OIML) is an intergovernmental treaty
organizationwhosemembershipincludesmemberstates,countrieswhichparticipateactivelyin
technicalactivities,andCorrespondingMembers,countrieswhichjointheOIMLasobservers
TECHNICALREGULATIONS
Technicalregulationsareissuedbyregulatorybodies(GovernmentInstitutionswithlegislative
authority)withtheaimtoguaranteethesafetyofconsumersusinggoodsandservices.Technical
regulationsarebinding(mandatory)intheirentirety.
WELMEC-EuropeanCooperationforLegalMetrologyhttp://www.welmec.org
WTOEnquiryPointwww.wto.org/english/tratop_e/.../tbt_enquiry_points_e.htm
Article10.1oftheWTOAgreementofTechnicalBarrierstoTraderequiresthat“eachMember
shallensurethatanenquirypointexistswhichisabletoanswerallreasonableenquiresfrom
otherMembers and interested parties in otherMembers as well as to provide the relevant
documentsregarding:
(1) anytechnicalregulations,
(2) anystandards,
(3) anyconformityassessmentprocedures,
(4) the membership and participation of the Member … in international and regional
standardizing bodies and conformity assessment systems, as well as in bilateral and
multilateralarrangementswithinthescopeofthisAgreement,
(5) thelocationofnoticespublishedpursuanttothisAgreement,and
(6) thelocationofotherenquirypoints”.
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