Indonesia Regulatory News

 The “Regulation of the Minister of Industry No. 13 of 2021 on the Recommendation of the Importation of Hazardous substances” came into force in Indonesia on 13th of July 2021.   The regulat...

 The “Regulation of the Minister of Industry No. 13 of 2021 on the Recommendation of the Importation of Hazardous substances” came into force in Indonesia on 13th of July 2021.  

The regulation concerns two categories of importers of hazardous substances; 1) “manufacturers and importers” (API-P) and 2) “general importers” (API-U). In the case of “Manufacturers and importers”, these types of importers have no right to further distribute hazardous substances on the Indonesian market. In the case of “General Importers” group, only state-owned companies will be granted the recommendation letter to import hazardous chemicals and distribute them on the Indonesian market. However, if one of the “General importers'” buyers does not comply with the regulations, the buyer will be banned from purchasing hazardous chemicals. 

According to the new regulation, the API-P type of importers of hazardous substances must get a recommendation letter from the Ministry of Industry. To obtain the letter, the importer must first verify itself through a third-party organization and then submit its application to the Ministry of Industry through the “State Industrial Information System (SIINas)”.  After the recommendation letter is obtained, the importer must submit an import result at least once a month to the Director General in charge through SIINas. 

The documents required for verification are as follows (for API-P only):  

• Company Registration Number (NIB) 

• Industrial business license or expansion business license Import plan 

• Hazardous substances inventory list owned by the company 

• List of types and quantities of major equipment used and production process flow 

• List of workers 

• Safety data sheets (SDS) for hazardous substances 

• Production capacity and types of products to be produced 

• Production performance reports for the last 3years 

• Hazardous substances utilization report for the last 3 years 

• Production plan and hazardous substances requirements for one year of production. 

After the verification by a third party, the company is supposed to apply for the recommendation letter through SIINas: https://siinas.kemenperin.go.id/.  The application must include reports on the verification results. Furthermore, the importer should provide:; 

• Identification information of the company 

• The business license of the company 

• The CAS number of the hazardous substances to be imported 

• The HS tariff number/item of the hazardous substances to be imported 

• Intended use of hazardous substance 

• Recommended import quantity 

• Country of origin, country of loading 

• Port of destination 

• The recommendation letter's validity period 

Definition:  

According to the regulation, the definition of hazardous substances is the following: Hazardous substances are components, chemicals, and biological materials in the form of single substances or mixtures that are toxic, carcinogenic, teratogenic, mutagenic, corrosive, and irritant that may pose a risk to health and the environment, directly or indirectly. 

On February 10, 2022, the Regulation of the Minister of Trade No. 7 of 2022 Concerning Distribution and Control of Hazardous Substances was enacted in Indonesia and came into effect on the same day. T...

On February 10, 2022, the Regulation of the Minister of Trade No. 7 of 2022 Concerning Distribution and Control of Hazardous Substances was enacted in Indonesia and came into effect on the same day. This regulation is about regulating the distribution of certain hazardous substances. 

Businesses working with such chemicals are required to get a business permit in order to handle those substances, label hazardous substances, attach SDS to hazardous substances, and to report the results of distribution. Since there is enforcement of this regulation, the existing Regulations of the Minister of Trade No. 44 of 2009 and No. 47 of 2019 are invalidated. 

Hazardous substances refer to chemical substances, biological substances, and substances in the form of pure substances or mixtures that are toxic, carcinogenic, teratogenic, mutagenic, corrosive, and irritating and that may directly or indirectly endanger human health and the environment. 

The specific list of hazardous substances can be found in attachments of this particular regulation. 

Distribution requirements for hazardous substances 

Distribution of hazardous substances is only possible by registered hazardous substances distributors, companies that are dealing with hazardous substances, and registered importers of such hazardous substances: 

• Registered hazardous substances distributors: 

This consists of large-scale commercial enterprises handling hazardous substances that hold a business identification number under the Indonesia Standard Industrial Classification No. 46653 for hazardous substances distribution. 

• Industrial companies handling hazardous substances: 

This consists of local people that work in chemical industries in Indonesia and handle hazardous substances as part of their work in accordance with the industrial sector regulations. 

• Registered hazardous substances importers: 

This consists of enterprises that possess a business identification number valid as an import identification number and that are engaged in the import and distribution of hazardous substances. 

Registered hazardous substances distributors are supposed to obtain a business permit to handle hazardous substances from the Minister of Trade for the distribution of hazardous materials. The application for the permit shall be made online at https://oss.go.id/. 

The documents that are required along with the application are as follows: 

• a letter of appointment from an industrial company that handles hazardous substances 

• a written description of the storage, and a document indicating possession of an emergency response system 

• For industrial companies handling hazardous substances and registered hazardous substances importers, only a business permit in accordance with the law is required. 

For hazardous substances listed in Attachment I, among the regulated hazardous substances, industrial companies handling hazardous substances or registered hazardous substances importers may distribute hazardous materials directly to businesses that use them as raw substances. Alternatively, they may be distributed through registered hazardous substances distributors as the intermediary. Hazardous materials listed in Attachment II must be distributed directly from industrial companies handling hazardous substances or registered hazardous substances importers to businesses that use them as raw substances. In other words, registered hazardous substances distributors cannot handle these hazardous materials. 

When hazardous substances are distributed, it is an obligation to attach a Safety Data Sheet (SDS) and label on packaging. The label must contain the following points: 

• Type of hazardous materials. 

• Name and address of registered hazardous substances distributors, industrial companies handling hazardous substances, or registered hazardous substances importers packing the hazardous substances. 

• Net weight or volume of the hazardous substances. 

• Application, hazard pictogram/symbol, signal words, and hazard statement 

Reporting of hazardous substances distribution results 

Registered hazardous substances distributors, industrial companies handling hazardous substances, and registered hazardous substances importers are required to report the distribution results of hazardous substances online at https://sipt.kemendag.go.id/. 

Registered hazardous substances distributors are supposed to report the number of hazardous substances obtained from industrial companies handling hazardous substances or registered hazardous substances importers.