Not Complying With SNI, 2,128 Tons Of Steel Imports From China Worth IDR41.68 Billion Secured By The Ministry Of Trade

Photo: Doc. Antara/Ministry of Commerce

JAKARTA - The Directorate General of Consumer Protection and Trade Order (PKTN) of the Ministry of Trade acted quickly to temporarily secure imported steel products suspected of not meeting the quality requirements of the Indonesian National Standard (SNI). Steel products that were secured were recorded as weighing 2,128 tons with a value of Rp41.68 billion.

"The Ministry of Trade has responded to information on the widespread importation of raw materials for zinc-coated steel (BjLS) and galvanized steel coils with aluminum zinc alloy (BjLAS) products from China, and the circulation of BjLS does not meet the technically required quality," said Trade Minister Zulkifli Hasan in a statement. quoted by Antara, Tuesday 9 August.

After being tested, these products are declared not to meet the requirements of SNI, namely SNI 07-2053-2006 and SNI 4096:2007. The temporary security measures were carried out at two companies simultaneously in Serang Regency, Banten and Surabaya, East Java.

These business actors have imported raw materials from China in the form of galvanized steel coils which are suspected of not meeting the standards, producing BjLS that do not comply with SNI, and trading these products without having SPPT-SNI and NPB.

This action has the potential to violate Law Number 8 of 1999 concerning Consumer Protection, Law No. 7 of 2014 concerning Trade, and the Minister of Trade Regulation Number 69 of 2018 concerning Supervision of Circulating Goods and/or Services. These business actors continue to trade at a lower selling price.

This creates unfair competition because it can kill the domestic industry for similar products.

Temporary security measures, continued the Trade Minister, are carried out to minimize consumer losses. Security is carried out based on Article 40 of the Regulation of the Minister of Trade Number 69 of 2018 concerning Supervision of Circulating Goods and/or Services.

"This temporary security is an initial precaution to minimize consumer losses in terms of safety, security, consumer health and the environment (K3L)," explained the Trade Minister.

According to him, trade in BjLS products must meet SNI quality requirements, and business actors are prohibited from producing and/or trading goods that do not comply with the provisions of Article 8 paragraph (1) letter a of Law Number 8 of 1999 concerning Consumer Protection.

Business actors who violate these provisions may be subject to criminal sanctions based on Article 62 paragraph (1) of Law Number 8 of 1999 with a maximum imprisonment of five years or a maximum fine of Rp. 2 billion.

In addition, perpetrators can be subject to sanctions in accordance with Article 113 of Law Number 7 of 2014 with a maximum imprisonment of five years and/or a maximum fine of IDR 5 billion.

Zulkifli emphasized that consumer protection for goods and/or services trading activities must be an important commitment for business actors in carrying out their business activities by ensuring that all their obligations have been fulfilled and the goods and/or services traded have complied with the required technical requirements.

"All forms of violations that occur will be continued in the realm of law enforcement based on applicable provisions. This is evidence that the Ministry of Trade continues to protect the domestic industry and Indonesian consumers," said Minister Zulkifli Hasan.

Meanwhile, the Director General of Consumer Protection and Trade Order Veri Anggriono explained that the Directorate General of PKTN through the Directorate of Circulating Goods and Services Supervision will immediately process the results of the temporary security of the steel products.

"The results of the temporary security that have been carried out on BjLS and BjLAS products will be followed up immediately by processing these findings by summoning the relevant parties to collect information needed for the purposes of the law enforcement process in accordance with the provisions of the legislation," said Veri.