SMEs play a vital role in boosting Indonesia's economy and generating foreign exchange earnings, particularly through exports. However, many Indonesian SMEs are unable to export their goods because their products fail to meet mandatory export standards.

Furthermore, there is a common misconception that export standards are solely about certification. In reality, meeting product safety standards is of greater importance. Varying export regulations across different countries often hinder sales for domestic SMEs, as their products fail to comply with the specific safety standards of the destination markets. This challenge is compounded by the fact that domestic regulations are less stringent than those in export destinations, alongside the limited resources SMEs have to upgrade their product safety standards.

2 types of standards

Standards are categorized into two types: mandatory standards and general standards. However, this article focuses solely on mandatory standards; general standards will be discussed in a future article.

Mandatory standards are requirements or regulations imposed by the government to ensure product safety.
General standards are those required by export markets or private entities that place a higher priority on product quality.
For example, if you are exporting fruit, mandatory standards would cover issues such as pesticide residues and potential health risks associated with consumption. General standards, on the other hand, would focus more on attributes like size, color, sweetness, freshness, and the absence of defects.

3 mandatory standard levels

• National Level: These standards operate in accordance with the regulations or provisions of individual countries or their respective national standards bodies.
• Regional Level: These standards operate based on agreements arising from inter-country cooperation—such as single markets—within specific regions. Examples include the Association of Southeast Asian Nations (ASEAN) and the European Union (EU), which implement standards across their respective regions.
• International Level: These standards operate and are implemented in accordance with decisions made by four international standards bodies: the Codex Alimentarius Commission (CAC), the International Telecommunication Union (ITU), the International Electrotechnical Commission (IEC), and ISO.

Access Information regarding mandatory export standards.

Every country has a portal or service providing information on standards-related regulations. Typically, this takes the form of a website detailing the standards that must be met for exports or imports.  

In Indonesia, for instance, you can access information via the Ministry of Trade’s portal (exim.kemendag.go.id) regarding international standards and specific product requirements across various countries. At the regional level, you can consult the European Union’s site (trade.ec.europa.eu), while the International Trade Center (ITC) offers information at the global level via exportpotential.intracen.org. Please access these resources based on your specific market requirements.

Example of mandatory export standards

For reference, you can view the mandatory standards for textile products below:

• Product safety requirements: Child safety, flammability or tearability. 
• Chemicals: List of chemicals that are not permitted in textile products.
• Rules for materials from plants or animals: Plants or animals are not allowed to be used as ingredients for textile products.
• Packaging: Standards of packaging materials permitted for individual textile products or large quantities.
• Labeling: Labeling standards on textile products which are usually related to material composition, material planting, production location, and washing and storage instructions.

Looking at the example above, mandatory standards for textile products—particularly regarding chemical content—are typically strictly enforced through laboratory testing or health certifications. Consequently, ensuring product safety is crucial for successfully entering a designated target market.

Therefore, before exporting, it is essential to pay close attention to these standards, as most destination countries enforce high and rigorous mandatory requirements. In short, as SME operators, we must proactively seek out and stay updated on information regarding mandatory export standards.

Given the rapid pace of modern development, there is now a wealth of support available for Indonesian SMEs, ranging from training programs to access to capital. We should make the most of these resources to meet mandatory export standards and ensure our products are ultimately accepted into the global market.

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