SNI Expansion Seen as Barrier Against Imports, Pathway for SMEs to Compete Abroad

RRI.CO.ID, Jakarta - Expanding the implementation of mandatory Indonesian National Standards (SNI) is seen as crucial to strengthening the competitiveness of domestic industry amid the influx of cheap imported products. Standardization policies are designed to protect consumers, SMEs, and local industries.

A lawmaker of Commission VII of the House of Representatives (DPR RI), Bane Raja Manalu, said SNI plays a strategic role in safeguarding domestic industries by serving as a non‑tariff barrier.

He noted that Indonesia lags behind neighboring countries in the number of mandatory SNIs. The SNI Working Committee of Commission VII is urging the government to expand mandatory standards, particularly in sectors tied to consumer protection and product competitiveness.

“We, the Commission VII SNI Working Committee, hope that industry in this republic will progress significantly and that mandatory SNI will protect consumers,” Bane said after a working visit to the Center for Standardization and Industrial Services for Materials and Engineering Goods (B4T) at the Ministry of Industry in Bandung, West Java, on Monday, May 25, 2026, as quoted on the DPR RI’s official website.

In the context of increasingly open global trade, he stressed that standardization is vital to ensure products entering Indonesia meet government‑set quality and safety standards.

Bane cited textiles and clothing as examples of sectors under pressure from low‑priced imports. He argued that mandatory SNIs for certain textile products would prevent foreign goods from entering the domestic market without meeting applicable standards.

“The SNI implemented by the Indonesian government is also a non‑tariff barrier. This protects the domestic industry. Currently, clothing is entering the country from various countries at super‑low prices. If Indonesia had a mandatory SNI for textile products, foreign products would not enter Indonesia as easily,” he explained.

However, Bane cautioned that mandatory SNIs must not create new obstacles for the national industry. He emphasized the need for clear and measurable service‑level agreements to define processing times and procedures.

“The SNI implementation mustn’t hinder industry development. SNI processing time must be certain and service‑level agreements clearly defined. Avoid sudden rejections,” he said.

Beyond consumer protection, Bane believes SNIs can help SMEs access export markets. He noted that the weakening rupiah against the US dollar offers Indonesian products a price advantage internationally, but many SMEs struggle to meet export standards, including SNI certification.

He urged the government to adopt affirmative policies such as fee waivers or special tariffs for SMEs. He argued that the current annual sales threshold of IDR 60 million for zero‑percent tariff eligibility is too low and should be raised.

“Don’t limit small and medium enterprises to an annual sales threshold of only IDR 60 million to receive the zero percent tariff exemption for SNI processing. If it’s only IDR 60 million, that will make things difficult for SMEs. The figure should be raised so they can obtain SNI processing free of charge or at a discounted rate,” he said.

The SNI Working Committee of Commission VII reaffirmed its commitment to expanding mandatory SNIs in Indonesia while prioritizing consumer protection and strengthening domestic industry. ***