Indonesia Food Safety Regulation

and Opportunity to Support the

Food Innovation in Indonesia
Tetty H. Sihombing
National Agency for Drug and Food Control
Republic of Indonesia
(BPOM)

Presented at
Asia Australia Food Innovations Conference
18 March 2016
 AGENDA

1 Policy and Strategic Directions

2 Opportunities for Innovations
3 Food safety regulation in Indonesia

4 Closing remarks

2
 Republic of
Indonesia
• Archipelago of 17.504 islands, lies across the equator
• Area: land 1.904.569 km2 (37% of total); ocean 3.257.483 km2 (63% of total)
• 34 provinces, 514 regencies/ municipalities
• Tropical country, two seasons (dry and rainy)
• The world’s 4th most populous country: 250 Millions
• More than 370 ethnics, more than twice as many distinct languages as well as languages
diversity 3
 National industry development masterplan 2015-2035

Vision: becoming a strong industrial country

Backbone industry
food Pharmacy, Textiles, leather, transportation electronics Power
cosmetics and footwear and equipment and plants
medical devices miscellaneous telematics

Supporting industry
capital goods, components and auxiliary materials, and industry service
Upstream industry
Agro-business Basic metal and non-metallic minerals Basic chemicals

Basic capital
Infrastructure Policy and regulation Financial
Prerequisites
Natural resources Human resources Technology, innovation, creativity
 National Medium Development Plan 2015-2019

Vision: Indonesia Sovereignty, Self Reliant, and ‘Gotong Royong’

9 Development Agenda

6. To improve people’s productivity 7. To achieve economic independence

and competitiveness in the by moving the strategic sectors to
international market domestic economy

6.8. Acceleration of 7.1. To strengthen food

national economic growth sovereignty

Improving standardization and Improving food consumption and

certification (halalness, food safety) to nutrient intake by diversification of
strengthen competitiveness of SMEs and quality, healthy, and halal non-rice food
cooperatives
5
Policy Direction and Strategy for Health Development in the National Medium
Term Development Plan 2015 – 2019

To improve food and drug control by:

1. Strengthening risk-based control
2. Improving human resources
3. Strengthening partnership among stakeholders
4. Improving public and private sectors capability to carry
out risk-based control
5. Improving capacity and innovation of business
operators to boost their products competitiveness
6. Strengthening capacity and capability in laboratory
testing

6
 AGENDA

1 Policy and Strategic Directions

2 Opportunities for Innovations

3 Food safety regulation in Indonesia

4 Closing remarks

7
Indonesia Economy and Competitiveness

• The 16th largest economy (2014)

• GDP grew by 5.6% annually since 2004
• The world’s third fastest growing economy after China and India over the last 10 years

• GDP contributes to 37% ASEAN GDP

• Home for 40% ASEAN people

Global Competitiveness Index 2014-2015:

• rank 34th out of 144 countries
• improvement in infrastructure and connectivity; the quality of public and private
governance; and government efficiency

• Food industry contributes 30% of the country’s GDP from the non-oil manufacturing
industry
• 1 million food industries (1% large industry; 99% small and medium industry)

8
Indonesia Investment Realization in 2015

Domestic Direct Investment (DDI) Foreign Direct Investment (FDI)

1st Rank  Food Industry 1st Rank  Mining

(Rp. 24.6 T with 879 Project) 9th rank  Food Industry
(US$ 1.5 B with 1,306 project)
9
Source: www.bkpm.go.id
 Export Import of Food and Beverages between
Indonesia and Australia 2012-2014

1200
1005
1000

763
800
USD million

600 Export
466
Import
400

151 176
200 132

0
2012 2013 2014 year
Source: Ministry of Industry, indonesia (2015)
Segmentation of Indonesian urban population

Urban population, in million people, 2013

Affluent consuming class

Mass consuming class

Aspiring class

Struggling class
Total urban
population SOURCE: McKinsey Consumer Insights Indonesia 2013

• Urban population of 138 million

• The consuming class is growing by 5 million every year, thus will reach 86
million in 2020
• A subset of 20 million Affluent Consumers is breaking away from the rest
 Segmentation of Indonesian rural population

Millions Millions
60
Consuming
110

Cluster rural Aspiring

Struggling

Rural Cluster rural

SOURCE: McKinsey Consumer Insights Indonesia 2013

Rural city clusters are emerging around urban centers, and include an attractive
segment of 15 million consuming class 12
 Product growth and penetration driven by
the consuming class (McKinsey, 2013)

• Increase in consuming class lead to rising demand for more convenient, health
and wellness food product
• Given the opportunity for industrial food technology innovation development
13
 Innovation system is
dynamic interactions
among academician,
government and
business

Academician
Government Regulation No. 35 Year 2007 on
Allocation of Enterprise Revenue in order to
Improve Engineering, Innovation, and Diffusion
Government
Business Technology Capability
/ Regulator

INNOVATION SYSTEM (Law No 18/2002)

 INNOVATION PARADIGM

Market/Society
R&D Institutes

Value Creation
Technology Development Know-Who
Know-Where
Know-What
Know-How GOVERNMENT
Know to regulate, to control,
to facilitate, to empower
 AGENDA

1 Policy and Strategic Directions

2 Opportunities for Innovations
3 Food safety regulation in Indonesia

4 Closing remarks

16
 Food Control System

Producer control sub

system (e.g. GMP,
HACCP, halal
assurance system)

Government control Consumer control sub-

sub-system (e.g. FOOD system (e.g. consumer
establish standard, pre
market evaluation, post
CONTROL empowerment, social
punishment)
market control) SYSTEM

17
 Food Safety Regulation in Indonesia
• Law No. 18/2012 on Food
• Government Regulation No. 28/2004 on Food Safety,
Quality and Nutrition
• Government Regulation No. 69/1999 on Food Labelling
and Advertisement
• Regulation of Minister of Health of Republic No.
33/2012 on Food Additives
• Other technical regulations
18
Sharing task and responsibility in food control based on
Government Regulation No. 28 Years 2004
Ministry of Agriculture (MoA)
Ministry of Marine Affairs and Fishers (MoMAF)
Ministry of Industry (MoI)
Ministry of Trade (MoT)
Ministry of Marine Affairs and Fishers (MoMAF)
National Agency for Drug and Food Control (BPOM)

Fresh Food Processed

Post-Harvest
Agriculture Manufacturing
Foods
Handling Direct Raw
Consumption Materials
Pre market
BPOM
Post Market
Fresh Foods, Retail Distribution
Processed
Consumers Foods, Ready MoI, MoMAF, MoA,
to Eat Foods BPOM
Food
Service Ministry of Health
Supervision of local
District Goverment
government and BPOM, MoI, MoMAF, MoA,
community by BPOM Prov or District Govt
 Indonesia Integrated Food Safety System
A forum to harmonize the strategic steps of all
stakeholders to improve food safety

National Food
Rapid response, 20/11/14
Safety
particularly in emergency INA RAC Committee
situation
BPOM Policy Direction 2015-2019
Risk management and partnership
approach
1
Strengthening risk-based control Government
system Manage risk by considering risk-benefit for
the people
2 Improving supervision and
assistance for business operator Business
Manage risk in the production and
3 distribution process for public protection
Improving partnership with other
government institutions, business,
and consumer Public/ consumer
Manage risk to protect themselves, their
4 family, and the environment
Strengthening institutional capacity

21
 Business Process of BPOM (2015-2019)

Drug and food control Development

Establishing
(pre market evaluation of guidance
standard,
and post market for
criteria stakeholder
vigilance)

Autonomy of
Drug and food control system stakeholder
22
 Establishing standard, criteria

Establishment
Assessment & Policy,
Socialization
Evaluation of Regulation,
and Monitoring
Food Product Standard, and
Advocacy
Standardization Code of
Practice

23
Food Safety Control in Indonesia

PRE AND POST-MARKET CONTROL OF FOOD PRODUCTS

RISK BASED APPROACH

PRE – MARKET EVALUATION POST – MARKET

VIGILANCE

REGISTRATION

REQUIREMENT •Inspection on production and

distribution channels,
•Sampling & lab testing,
•control of label and
QUALITY SAFETY NUTRITION advertisement,
•monitoring, surveillance,
•Investigation

LAW
BANNED PUBLIC ENFORCEMENT
SUSPENSION RECALLING
LICENSE WARNING

24
Closing remarks
• Indonesia is always a lucrative and attractive market for food. The food
trade is challenged by ASEAN-Australia-New Zealand Free Trade Area
as well as the shortcoming ASEAN Economic Community (AEC).

• BPOM work is focused on the highest public health protection and

support a fair trade of the consumer products, including processed food
and food supplement.

• In conducting its functions, BPOM emphasizes strong

partnership with stakeholders (government, private sector,
academia, and consumer)
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Contact Information:
Further information for Importation of Processed
Food:
Directorate for Food Inspection and Certification
Sub directorate for Food Certification
Jl Percetakan Negara 23, B Building 6th Floor
Jakarta 10560 Further information for Food Product
Standardization :
Phone: +62 21 4244691 (ext. 1325)
Email: sertipang@yahoo.com Directorate for Food Product Standardization
Jl Percetakan Negara 23, F Building 3rd Floor
Jakarta 10560
Further information for Processed Food
Phone: +62 21 42875584
Registration :
Email: standarpangan@pom.go.id;
Directorate for Food Safety Evaluation subditspo2@yahoo.com; subdit_spk@yahoo.com;
Jl Percetakan Negara 23, B Building 3rd Floor subdit.bb_btp@yahoo.com
Jakarta 10560
Phone: +62 21 42800221; +62 813 99133 050
Email: penilaianpangan@pom.go.id;
ditpkp_bpom@yahoo.com
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Thank you
Terima kasih

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