25
Oct2021

The Organization of Trade Sector (Government Regulation Number 29 of 2021)

Trade is a pillar for development in the economic sector as well as the main factor in the development of the national economy. To increase production and advance the economy, the Indonesian Government issued the Job Creation Act. One of the provisions of the Job Creation Law revised several articles in Law Number 7 of 2014 concerning Trade. In addition, the Government of Indonesia has also issued Government Regulation Number 29 of 2021 on The Organization of Trade Sector (GR 29/2021) as its implementing regulation.

 

Utilization or Completeness of Labels in Indonesian Language

Every Business Actor are required to use or complete labels in Indonesian language on Goods traded in the country which are performed by:[1]

  1. Trade through Electronic System;
  2. Trade whose goods are distributed indirectly;
  3. Trade whose goods are directly distributed single-level or multi-lever

Business Actors who violate the obligations shall be subject to administrative sanctions.[2] The obligation must be performed by:[3]

  1. Producers for Goods produced in the country;
  2. Importer for Imported Goods; and
  3. Packers for Goods produced in the country or Imported which are packaged within the territory of the Republic of Indonesia.

Labels in Indonesian language contains information regarding the name of the Goods, the origin of the Goods, the identity of the Business Actor, and other information in accordance with the characteristics of the Goods.[4] In addition, goods related to the safety, security and health of Consumers and the environment must contain how to use, and danger symbols and/or warning signs that are clear and easy to understand.[5] For Goods which have been subject to mandatory SNI, the inclusion of label in Indonesian Language shall adhere to the marking set out in the SNI.[6]

Related to the use of labels in Indonesian Language, Business Actor is prohibited to include such label containing incomplete, and/or incorrect and/or misleading information.[7] Business actor who violate the provision can be subject to administrative sanctions which may be in the form of:[8]

  1. written reprimand;
  2. withdrawal of Goods from Distribution;
  3. temporary suspension of business activities;
  4. closure of warehouse;
  5. fine; and/or
  6. Revocation of Business Licensing.

Ministry of Trade have authorization when the violation occurs to:[9]

  1. Instruct to recall goods from circulation;
  2. Prohibit such goods from trading, except such goods have fulfilled the provisions on the mandatory inclusion of labels in Indonesian language.

Meanwhile, provisions on the mandatory inclusion of label in Indonesian language do not apply to:[10]

  1. Bulk goods which are packaged and traded directly in front of Consumers; or
  2. Goods produced by micro-scale business actors and small-scale business actors.

 

Trade Facilities

Trade facilities consists of:

  1. Warehouse

The warehouse consists of a closed warehouse and an open warehouse. Closed warehouses further have 4 groups with varying criteria ranging from 100 m2 of warehouse area to more than 2,500 m2. or warehouses in the form of silo or tanks. Meanwhile, the open warehouse has a minimum area of 1,000 m2.[11]

Every warehouse owner must own a TDG from the Minister by registering their warehouse.[12] The issuance is carried out by the Governor of DKI Jakarta for the DKI Jakarta Province, and the regent/mayor on the authority possessed and delegated by the Minister.[13]

  1. Traditional Market

Traditional market is organized and/or built by the Minister, and further managed by Regional Governments, the private sector, state-owned enterprises, regional-owned enterprises, village-owned enterprises, and/or cooperatives. Stores/kiosks, booths, expanses/bases/stalls, and/or tents that are located in Traditional Markets are owned/utilized by small- and medium-scale traders, and/or cooperatives as well as UMK-M.[14]

  1. Shopping Centers and Convenience Stores

Shopping Center may take the form of:[15]

  1. shopping complex;
  2. mall; and
  3. plaza.

Meanwhile, Convenience Store may take the form of:[16]

  1. minimarket, with a sales floor area of up to 400 m2. Minimarkets, supermarkets and hypermarkets sell consumer goods in retail, especially food and/or household products;
  2. supermarket, with sales floor area above 400 m2 up to 5,000 m2;
  3. department store, with a sales floor area of at least 400 m2. Department stores sell retail consumer goods, especially clothing products and their accessories in an arrangement based on the gender and/or age of the consumer;
  4. hypermarket, with a sales floor area of over 5,000 m2; and
  5. Wholesale Store/Wholesaler in the form of a shop with self-service system, with a sales floor area of at least 2,000 m2, while those in the form of wholesale/cooperative wholesalers are at least 1,000 m2. Wholesalers / wholesalers sell in bulk / not in small parts various types of consumer goods.

Shopping Center Managers and Convenience Store Business Actors shall at least provide the following:[17]

  1. parking area;
  2. facilities that ensure Shopping Centers and Convenience Stores are clean, healthy (hygienic), safe, and orderly; and
  3. comfortable public spaces.

 

Standardization

Goods traded in the country must fulfill mandatory SNI or mandatory technical requirements.[18] Goods that have been subject to mandatory SNI or technical requirements must be affixed with SNI mark or conformity mark or be equipped with certificate of conformity acknowledged by the Central Government in accordance with the provisions of laws and regulations.[19] Producers before trading, or Importers before implementing the Import of, Goods that have been subject to mandatory SNI or technical requirements must:[20]

  1. register the goods being traded to the Minister; and
  2. include a registration number on the Goods and/or their packaging.

Producers or importers of electrical goods, electronic goods, and goods containing hazardous chemicals are required to register goods related to security, safety, health, and the environment that are produced domestically or imported, before circulating in the market. However, this obligation does not apply to goods that have been complied with SNI and/or goods whose registration has been regulated based on the provisions of laws and regulations.[21]

 

 

DISCLAIMER:

Any information contained in this Article is provided for informational purposes only and should not be construed as legal advice on any subject matter.  You should not act or refrain from acting on the basis of any content included in this Legal Update without seeking legal or other professional advice.  This document is copyright protected. No part of this document may be disclosed, distributed, reproduced or transmitted in any form or by any means, including photocopying and recording or stored in a retrieval system of any nature without the prior written consent of SIP Law Firm.

 

 

[1] Art. 20 (1-2) GR 29/2021

[2] Art. 20 (6) GR 29/2021

[3] Art. 20 (3) GR 29/2021

[4] Art. 23 (1) GR 29/2021

[5] Art. 23 (3) GR 29/2021

[6] Art. 24 (2) GR 29/2021

[7] Art. 25 (2) GR 29/2021

[8] Art. 166 GR 29/2021

[9] Art. 26-27 GR 29/2021

[10] Art. 28 GR 29/2021

[11] Art. 60 GR 29/2021

[12] Art. 61 GR 29/2021

[13] Art. 62 GR 29/2021

[14] Art. 71 GR 29/2021

[15] Art 85 (1) GR 29/2021

[16] Art 85 (2), and Art. 87-88 GR 29/2021

[17] Art.86 (2) GR 29/2021

[18] Art. 107 (1) GR 29/2021

[19] Art. 107 (5) GR 29/2021

[20] Art. 108 (1) GR 29/2021

[21] Art. 109 (1), (3), and (8) GR 29/2021

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