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Regulation On Mandatory Indonesian Language Labeling For Non-Food Products

September 16, 2010

In order to secure consumers’ rights to correct, clear and fair information regarding the condition and guarantees of goods they will be using, the Government of the Republic of Indonesia c.q. Department of Trade issued Regulation of the Minister of Trade No. 62/M-DAG/PER/12/2009 concerning Mandatory Labeling of Goods on 21 December 2009 (“Permendag No.62/2009”). The mandatory labeling was to have come into effect on 21 December 2010, but, as it was deemed necessary to provide effective and efficient protection for consumers, the Indonesian government decided to bring mandatory of Indonesian language labeling forward to 1 September 2010 by Regulation of the Minister of Trade No. 22/M-DAG/PER/5/2010 concerning Amendment to Regulation of Minister of Trade No. 62/M-DAG/PER/12/2009 concerning Mandatory Labeling of Goods (“Permendag No.22/2010”).

The types of goods that must be labeled in the Indonesian language under Permendag No.62/2009 jo. Permendag No.22/2010 are: (a) household, telecommunication and information technology electronic goods, consisting of 46 types, (b) building supplies, consisting of 8 types, (c) motor vehicles supplies (spare parts and others), consisting of 24 types, and (d) other goods, consisting of 25 types such as fertilizers, pesticides, detergents, household plastic products, men’s, women’s and children’s clothes and other ready made textile products, toys, ready made leather products, footwear and socks, photocopy paper, gas lighters and matches, electric switches, swa-ballastlamps, MCB (mini circuit breakers), printing ink and paint (“Mandatory Goods”).

Permendag No.62/2009 jo. Permendag No.22/2010 obliges any business actors who will produce or import the Mandatory Goods for trade within the Indonesian domestic market to label the goods in the Indonesian language, and for imported goods, when the imported goods comes into the Indonesia customs area they are already labeled in the Indonesian language. The business actors must submit samples of the label to the Directorate for Supervision on Disseminated Goods and Services of the Department of Trade (“DOT”) and DOT will issue Statement of Indonesian Language Labeling (Surat Keterangan Pencantuman Label Dalam Bahasa Indonesia) at the latest 5 working days as from when the requirements are complete. This Statement serves as the document evidencing that the label fulfill the requirements for domestic products, while for imported products it serves as a supporting customs document. The Statement remains valid for as long as the business actors produce or import the goods as detailed in the Statement.

The requirement to label the goods in the Indonesian language does not apply to: (i) bulk goods or goods packed directly in front of consumers and (ii) the Mandatory Goods if they are used as raw materials and/or other auxiliary materials in a production process. Any breach of Permendag No.62/2009 jo. Permendag No.22/2010 will attract administrative sanctions or criminal sanctions under the Consumer Protection Act and Legal Metrology Act.