Indonesian importers have raised concerns over the government’s plan to enforce mandatory Indonesian National Standards (SNI) for zinc-coated and aluminium-zinc-coated steel products, warning the policy could disrupt supply chains, raise prices and trigger layoffs if implemented without adequate preparation.
The new rule, stipulated under Industry Ministry Regulation No. 23 of 2025, amends an earlier regulation issued last year and is scheduled to take effect on May 20, 2026. It requires affected steel products to obtain SNI certification before being marketed or imported.
The government says the regulation is intended to align technical standards, create order in the steel market and protect state, public and business interests. But business groups say implementation risks outweigh its stated goals.
“The problem is not that businesses reject the regulation,” said Capt Subandi, chairman of the Indonesian National Importers’ Association (GINSI), in a statement on Thursday.
“The concern is that the government is not ready to implement it fairly, transparently and accountably,” he said further.
Subandi said the regulation could force thousands of brands and companies to apply for SNI certification and product conformity certificates (SPPT SNI) within a short timeframe. However, he noted that as of late January 2025, no such certificates had been issued.
He warned that the mandatory SNI would also apply to raw materials, potentially halting production in downstream industries and leading to layoffs.
“If this takes effect without readiness, some industries will be unable to operate,” Subandi said. “That means production stops and workers lose their jobs.”
According to GINSI, uncertainty surrounding the policy could make SNI-compliant products scarce or significantly more expensive. The certification process can take months and involves high costs borne entirely by companies, including inspection fees and overseas verification.
“There are rumours that a single SNI certificate can cost tens of thousands of dollars, not including the cost of sending multiple surveyors to the country of origin,” Subandi said.
GINSI has urged President Prabowo Subianto to assign law enforcement agencies to oversee the implementation of the policy to prevent illegal levies or bribery, citing the high compliance costs and limited certification capacity.
Businesses, Subandi added, are caught between the need to accelerate certification and the need to keep operations running. SNI certificates are currently valid for only one year and must be renewed under the same requirements.
“Just imagine the costs borne by companies that are not even directly involved in production,” he said, adding that the burden contributes to Indonesia’s high logistics costs compared with other Southeast Asian countries.
GINSI has called on the Industry Ministry to stagger implementation rather than imposing mandatory certification on all products and brands at once. It has also proposed extending the validity of SNI certificates to at least three years, in line with international practice.
“The government needs to assess its capacity to issue certificates and match that with the number of applicants,” Subandi said. “This would prevent bottlenecks, excessive costs and the potential for extortion.”
He warned that production and import disruptions would have broader economic consequences, affecting suppliers, retailers and other related businesses.
“If this issue escapes the President’s attention, we could see mass layoffs, rising poverty and declining tax revenues,” Subandi said. “We support regulation, but it must not destroy businesses.”
Government backs steel industry growth
Separately, Industry Minister Agus Gumiwang Kartasasmita has said the government remains committed to strengthening the national steel industry to support economic growth and sustainable industrialisation.
The steel sector plays a strategic role in infrastructure development and downstream industries such as machinery, automotive manufacturing, shipbuilding and energy, the minister said.
Industry Ministry data show national steel production has risen nearly 98.5% over the past five years, reaching 8.5 million tonnes, reflecting improved competitiveness.
To further boost the sector, the government is implementing trade remedies, enforcing mandatory SNI standards, offering specific natural gas price incentives and promoting the use of domestic products, alongside fiscal incentives and green industry policies.
“These measures aim to sustainably increase capacity and utilisation while strengthening the competitiveness of domestic steel products in both domestic and export markets,” Agus said.