regulation

1. 15 May 2023
PBSN 7 and 8 of 2020
Indonesian RIA Case Studies
Directorate of Standards Implementation Systems and Conformity Assessment
Badan Standardisasi Nasional (BSN)

2. Legal Basis
1. Law No. 20 of 2014 – Standardization and Conformity
Assessment
2. Gov Reg. No. 34 of 2018 – National Standardization and
Conformity Assessment System
3. PBSN No.7 of 2020 – Procedure for Compulsory
Implementation of SNI
4. PBSN No.8 of 2020 – Procedure for conducting RIA and
implementation of international obligation

3. 3
Background - PBSN 7 and 8 of 2020
LAW 20/2014
ARTICLE 8
GOV REG 34/2018
ARTICLE 25
GOV REG 34/2018
ARTICLE 93
❑ BSN's Role in the Field of
Standardization and Conformity
Assessment
❑ To ensure the application of SNI
under the provisions of the GRP
❑ SNI Mandatory implementation shall
consider regulatory impact
assessment result
❑ Procedure of conducting assessment
refer to PBSN
❑ To fulfill international obligations in the
field of SPK, BSN cooperates with
related Ministries/Agencies according to
the Indonesian government's commitment
(Law 7 of 1994 concerning Ratification of
the Agreement Establishing the World
Trade Organization)
❑ Provisions regarding procedures for
implementing international obligations
refer to PBSN

4. IMPLEMENTATION of SNI
VOLUNTARY
Business actors who have
been able to apply standards
can apply for certification to
an accredited CAB
Legitimate objective
Technical Regulation
After obtaining a certificate,
business actors can use the
SNI mark
Business actors are
obliged to apply SNI
and use SNI marks in
accordance with
technical regulations
MANDATORY
Safety, Security,
Health, Environmental
Protection, and
National Security,
Deceptive Practices
Law 20/2014 Article 24-25
Law 20/2014 Article 21-23

5. 5
PBSN 7:2020
Procedure for
Compulsory
Implementation
of SNI
Analysis (RIA)
Regulator conduct a Regulatory
Impact Assessment to asses the
necessity of such technical
regulations
National Program
of Technical
Regulations
Regulator informs BSN on which
SNI(s) they wish to regulate as
mandatory in order to achieve its
legitimate objective
Notification
Regulator notify the draft of the
regulation to TBT Committee
through BSN as Indonesia TBT WTO
Notification Body and Enquiry Point
Regulation
Drafting
Regulator starts the process of
drafting the regulation following the
good regulatory practices principles
Identification
Regulator identifiy the necessity to
draft a technical regulation and the
available SNI to achieve its
legitimate objective
Adoption and
Evaluation
Regulasi is adopted after taken all
consideration into account. Transition
time is available for producers to
comply to the regulation. Evaluation
of the regulation is conducted
regularly.
Good Regulatory Practices

6. 1. Indentification 2. RIA
3. National Program of
Technical Regulation (PNRT)
5. Notification
6. Stipulation
7. Implementation
8. Review
4. Drafting
Regulatory implementation Framework
Stage submission for RIA to BSN
Procedure for Compulsory Implementation of SNI
PBSN 7:2020

7. 7
Procedures for Regulatory
Impact Assessment
Compliance to
Int’l Obligation
International
Obligation
• Provision on technical regulations
• Notification procedure
• Facilitating enquiry from and to
Indonesia to other WTO Members
Regulatory Impact
Assessment
• Problem identification
• Objective (Protection of Security, Safety, Health, and
Environment; Trade Facilitation; National interest; etc)
• Determination various option (regulation and non regulation)
• Risk, cost and benefit assessment
• Public consultation
• Recommendation
PBSN 8:2020
Procedure for Preparation of Regulatory Impact Analysis
and Implementation of International Obligations

8. Preparation of Regulatory Impact Analysis
6.1 Legal Basis
6.2 Technical Regulation Type
6.3 Problem Identification
6.4 Objective
6.5 Option Determination
6.6 Risk Analysis
6.7 Cost and Benefit Analysis
6.8. Public Concultation’s Result
6.9 Recommendation
6.10 Implementation Plan
6. 11 Submission of Regulatory Impact Analysis Results
RIA

9. The legitimate objective for the
government to enforce the
regulation.
Consideration if there is any
existence of relevant
international agreements or
provisions
LEGAL BASIS
New regulations or
review/revision of existing
regulations.
TECHNICAL
REGULATION TYPE
Describe the issue and pressing
problem for consideration of action
government. This stage can also
explain the source of causes and
consequences that may result if
not implemented handling action.
PROBLEM
IDENTIFICATION
6.1
6.2
6.3

10. Increase the business
certainty and efficiency of
domestic and global trade
transactions (fair and
transparent business
competition)
Improve protection, security,
safety and health, and
preservation of
environmental functions;
Improve production
efficiency, quality of goods
and/or services, ability to
innovate, competitiveness
Risks Protection;
Harmonization of standards,
technical regulations, and
conformity assessment
Other national interests in
accordance with law
provisions; and/or
Culture or traditions based
on local wisdom.
must be clear and targeted for the relevant issues
Objective
6.4

11. All options must be considered from all
aspects including:
OPTION DETERMINATION
No need to set
regulations
Need
rules/regulations
related to
consumer
information
labeling
requirements, etc
Need government
incentives (such
as subsidy rules,
taxes, tariffs)
Mandatory
Implementation
of Standard (SNI)
An options approach to regulatory
enforcement could include the following:
Setting performance,
process, or design
standards
Setting more stringent
levels of standards and
compliance
Enforcement time
Regional and
International Issue
Business Scale Enforcement method
6.5

12. It is necessary to carry out a risk analysis if
there is a link with health or environmental
issues
RISK
ANALYSIS
Risk analysis can describe potential losses if
there is no government intervention.
Risk calculation is carried out both
qualitatively and quantitatively if
technical regulations, SNI, and
conformity assessment are not enforced
compulsorily.
In this analysis it is necessary to describe
the difference between risk management
through regulation and without
regulation.
6.6

13. 6.7.1 Identification of Significant Impacts
Cost and Benefit Analysis
Identify all impacts associated with the option,
regulation and non regulation. All impacts
identified and consulted with experts. The relevant
stakeholders need to be identified to ensure the
benefits and costs.
Calculation of the impact on the basic variables
that can be determined, for example : revenue, cost
changes and technology. Some impacts may be
difficult to quantify in quantity (because the lack of
data and scientific justification) – so, it is necessary
to describe and explained.
Set projections on the basic variables and use value
over time to determine the costs and benefits of
the option’s set.
6.7

14. 6.7.2 Benefit’s Calculation
Calculation methods may include consumer’s habit, based on observations and things that delivered by
consumers. This approach can describes consumer's willingness to pay in reaching or changing habits to the
selected option or not to accept the option set.
Benefit calculations can also include efficiency values and profits achieved by business actors to the selected
option
Carried out on cost efficiency incurred by ministries or non-ministerial government agencies in
implementation of the selected option

15. Public Concultation’s Result
Stakeholder involvement is very important to consultations on decision-making to the options which are
described. Public consultation can be carried out online or through meetings with stakeholders. Need to be
considered : Extensively participation and implementation efficiency.
Recommendation
Decision of the options that have been assessed how positive/negative impact with option that have greatest
of net benefit for the community and has been accordance with that purpose want to achieve. If possible, at
this stage the preferred option is determined or by creating ranking of options based on certain evaluation
criteria. Example: stipulate recommendations for implementing mandatory SNI, if be the right choice
6.8
6.9

16. Implementation Plan
Considerations need to be made to determine the transition period from implementation of the selected
option. Implementation plan may include : Socialization, implementation date, coordination with related
institutions effectively and efficiently.
Ministries/non-ministerial government agencies needs to convey information on the agenda for
implementing regulations, includes:
a. The time needed for regulation drafting
b. The time provided for public consultation
c. Time targets for determination/enforcement of the regulation
d. Time for evaluation regulation
6.10
Submission of Regulatory Impact Analysis Results
Ministries/non-ministerial government agencies submit the results of the Regulatory Impact Analysis.
Note: for implementing mandatory SNI to BSN.
6.11

17. RIA Form
Institution :
Contact Person Name
Address
Email
Telp
:
:
:
:
Type of Technical Regulation* a) New regulation
b) Revision of technical regulation
Legal Basis :
1. Problem Identification :
2. Objective :
1. Protection Safety, Security, health and function preservation Environment
2. Improve production efficiency, quality of goods and/or services
3. other (specify) :…..
3. Option :
1. .................................................................................................................
2. .................................................................................................................
4. Risk Analysis
Potential loss
qualitative quantitative
Regulation
Without Regulation

18. 5. Cost and Benefit Analysis
Option 1: ………..
Early Year Final Year Total (Current Value) A Year’s Average
A. Measurable impact (Quantitative/ Valued in Rupiah)
Benefit for Stakeholders
Cost for Stakeholders
Net Benefits :
Benefits derived from reduction the benefits and costs for stakeholders.
B. Measurable Impact (Not Valued in Rupiah)
Positive Impact for Stakeholders
For Example : public health benefits from reduction the death incident or accident or other bad consequences of the problem if not regulated through
regulation
Negative Impact for Stakeholders
For Example : Industry fulfillment costs consequences in rising prices charged to consumers who can not be calculated direct
C. Qualitative Impact
For Example : Brief details of impact qualitatively (positive and negative) by stakeholders
Repeat stage No.5 for the next options (if any):....
6. Results of Public Consultation :
7. Recommendations: Selected options …….
8. Time of Enforcement :

19. RIA of Compulsory implementation of SNI for Lubricant
a) Problem Identification :
✓ no assurance of lubricant quality
✓ lack of competitiveness for local product
b) Objective :
✓ achieving product quality assurance, related to protect consumer, manufacturer and healthy business climate
✓ increasing local product competitiveness
c) Determining option (regulation and non regulation): compulsory SNI
d) Risk, cost and benefit Assessment : qualitative assessment for compulsory implementation plan
e) Public consultation
f) Recommendation : enforcing SNI implementation with several adjustment
Ministry of Industry Regulation No. 25/2018
SNI
7069.1:2012
SNI
7069.2:2012
SNI
7069.3:2016
SNI
7069.4:2017
SNI
7069.5:2012
SNI
7069.6:2017
SNI
7069.7:2017

20. Website BSN
http://bsn.go.id/
National Program of Technical Regulation
List of Mandatory SNI
https://bsn.go.id/main/berita/detail/11863/program-nasional-regulasi-teknis