Local Boost for Indonesian Exporters on Standards

Indonesian exporters no longer need to look offshore or to seek government assistance to determine if their products will satisfy minimum Australian standards, or those applying in other potential export markets.

Australia’s Senior Trade Commissioner to Indonesia, Rod Morehouse, said a world-class service was now available commercially within Indonesia to help local companies overcome the challenge of different product standards set by individual countries.

“We often hear of problems faced by Indonesian exporters, small and large, in trying to understand the complexity of Australia’s food hygiene requirements, or German electrical standards, or Chinese health requirements,” Mr Morehouse said. “Exporters around the world have to negotiate these complex issues.”

While local companies may in the past have been at a disadvantage on standards issues, that situation appears to have changed with the arrival of PT SAI Global Indonesia, which Mr Morehouse said was an “exciting development” for local companies.

“SAI are able to certify products for export, undertake quality checks on behalf of buyers overseas, and advise Indonesian manufacturers on the standards applying in target export markets so products are not rejected on arrival,” Mr Morehouse said.

“SAI has global links with all other international standards organisations and information in its database on the standards applying in all of Indonesia’s main export markets,” he said.

SAI Global Country Manager, Tribudi Widodo, said the company was the second largest provider of independent assurance services in Indonesia, with offices in Jakarta, Surabaya and Medan, and was now among the top ten providers globally.

“All businesses, large and small, require quick and easy access to relevant technical and business standards and government regulations if they are to operate effectively in a modern economy,” Widodo said.

“For many SMEs, navigating their way through the regulatory maze can be an overwhelming burden and, coupled with the cost of compliance, this can often make accessing a new market impossible," he said.

SAI Global, formerly the advisory arm of government agency, Standards Australia, responsible for setting all major engineering and health standards for imports into Australia, was commercialised several years ago.

“Today, when an Australian exporter requires advice on overseas standards, they can visit the local office of SAI Global and get a sense of the key requirements,” Mr Morehouse said.

Mr Morehouse said Indonesian exporters wanting to break into the Australian market should contact SAI for advice on relevant product standards.

Trade between Australia and Indonesia has grown steadily in recent years, with current annual two-way trade worth about A$10.4 billion.

Indonesia currently enjoys a merchandise trade surplus with Australia of A$135 million, with major exports to Australia including crude petroleum, non-monetary gold, paper and wood.

Mr Morehouse said there was significant potential for Indonesian SMEs to export their products to Australia at present, particularly given the strength of the Australian economy and currency.

“The announcement of a feasibility study into the merits of an Australia-Indonesia FTA is promising also, as an FTA would provide even better access for Indonesian products,” he said. “In the interim, local companies should be gearing themselves up by researching Australian minimum product standards.”

For more information please contact:
John Williams, Counsellor (Public Affairs), Australian Embassy, ph (021) 2550 5290, mob 0812 105 3989