1 NATURAL HONEY Embassy of the Argentine Republic Indonesia By: Novi Y Market Review Indonesia has the third largest tropical forest in the world after Brazil and Zaire, Indonesia’s forest land comprises more or less 60% of the country’s land area and as of 2012 Indonesia has 130,61 million ha forest area. Therefore Indonesia has many natural resources, one of which developed by Indonesian people is Natural Honey. The development of honey bee cultivation in Indonesia began during 1841, and the development is far less compared to other countries e.g: Australia, Germany, Rumania, Mexico, India, Japan and China. It is because mostly Indonesian people using very traditional ways to produce honey. Indonesian people, the Javanese and Balinese, have traditionally been cultivating local bee Apis Cerana while the community in Sumatra, Borneo, Sulawesi and East Nusa Island are more accustomed of bee species A. mellifera. The business of honey bee has been facing ups and downs from time to time. Coaching and development of beekeeping is cross sectorial involving various government institutions and non-governmental institutions related to aspects of the cultivation, production, post harvest management, marketing capital and development of science and technology. According to Association of Indonesia Beekeeping, there are four types of local bee which produce honey: 1. Apis dorsato (forest bee) 2. Apis indica (local bee) 3. Trigono spp (unstinged bee) 4. Apis mellifera var ingustica SPIN (winning bees from Australia) 5. Apis andreniyormis 6. Apis cerana 7. Apis koschevnikovi 8. Apis Nigrocicta The most farmed bees in Indonesia are Indica and Mellifera. Dealing with a variety of farm bee business problems in Indonesia Production Local honey has lower quality and quantity of production due to the high humidity, and the provision of beekeeping production facilities in the form of colonies of bees, queen bees, equipment, and drugs for eradication of pests is still limited. Marketing Public perception of honey is just as a drug, so the low consumption level. Besides, the quality of honey produced varies and generally still below the standards set by ISO-94, characterized by high water content and purity are not guaranteed. 2 Investment Beekeeping business generally carried out by small farmers with limited capital. The banks are not willing to provide credit in the business of beekeeping because they have not trusted in the feasibility their business. Research and Development Beekeeping research program has not been well coordinated and the limited number of researchers, facilities and infrastructure and research funding. Universities and other scientific institutions in general have not dealt with beekeeping activities. Institutional and regulatory legislation Beekeeping National Development Agency TBAPEN) is not facilitating enough the beekeeping development activities undertaken by each institution and not currently available legislation to support the development of beekeeping Distribution Channel The import of honey in Indonesia is intended for cosmetics industry, traditional medication and end users. The mode of import is in bulk pack or in containers. Retail of honey to the end users are imported by local distributors in bulk and repack locally in consumer size packages or imported in package size and distribute it to supermarkets, mini markets and drugstores. According to Ministry of Forest, in 2014 the production of honey in Indonesia reached around 5000 tons which is in average the local production only can meet about 20 gram/ person/ year or its equivalent of one spoon per person per year. Compared to other countries the production of honey in Indonesia is very low, in average international production of honey is 15.000 ton/ year. Indonesia has population of 253 million (2014), it means the local production of honey is not enough to meet the local demand. Also indication is that the consumption will be higher year by year due to the increasing awareness to consume honey as a supplement apart from as a medicine. According to the Ministry of Forests, the local production of honey decreases every year for various reasons and therefore, Indonesia imports honey from other countries 3 The following tables are list of exporter of Honey to Indonesia since 2009 - 2014 Indonesia Imports Natural Honey from World (2009 – 2014) Product: 040900 Honey, natural Unit : US Dollar thousand No Exporters 1 2 3 4 5 6 Argentina Saudi Arabia Australia Thailand New Zealand Viet Nam United States of America Egypt France United Arab Emirates Brazil Canada China Germany Iran Japan Malaysia Timor-Leste India Singapore United Kingdom 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Imported value in 2009 Imported value in 2010 Imported value in 2011 Imported value in 2012 Imported value in 2013 0 241 3.182 192 92 0 81 593 6.560 1.089 0 1.535 1.714 843 2.456 685 0 156 4.838 1.348 1.094 257 127 157 4.319 2.268 723 403 196 184 1.169 63 4 3.216 0 117 861 13 43 169 141 149 158 56 26 29 0 4 7.407 66 21 638 0 3 21 2 5 0 0 15.082 110 60 1 0 0 23 0 0 14 0 618 364 0 1 0 0 24 0 0 0 0 475 0 0 1 227 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 0 Market Analysis and Research, lnternational Trade Centre (lTC); Palais des Nations, CH-1211Geneva 10; Switzerland Tel.: +41 (0)22 730 02 34; Fax: +41 (0)22 730 05 77, marketanal) sis@intracen.org Copyright @ 199$2008 lnternational Trade Centre. All rights reserved. Imported value in 2014 4.182 417 1.123 99 n/a 1.414 238 12 n/a n/a n/a n/a 268 n/a n/a n/a n/a n/a 770 n/a 4 Import of Natural Honey in Indonesia Year Weight (Kg) FOB (US$) 2.243.474 8.851.165 2013 2.177.424 8.333.688 2012 2.353.221 8.984.544 2011 2.299.016 7.792.660 2010 15.595.493 28.474.546 2014 Source: central bureau of statistics Indonesia Import of Natural Honey in Indonesia 5 Argentine Natural Honey Exports to Indonesia (2010 – 2014) Year Exported Value 2010 71.741 2011 2.069.189 2012 4.192.780 2013 4.113.783 2014 4.182.045 Source: Centro De Economia Internacional de Argentina List of Honey in Jar which Sold in Indonesia (December 2014, US$ 1 = Rp12.000,-) No Country Brand Type of Honey Size Price (US$) Importer 1 New Zealand Germany Air Bone Acacia Honey 500gr 11.41 N/A Langnese Acacia Honey 500gr 8.66 PT Kartikawira Alshifa Acacia Honey 500gr 17.89 4 Saudi Arabia Switzerland Nectaflor Acacia Honey 250gr 10.21 5 Switzerland Bihophar Acacia Honey 250gr 27.79 PT Safarindo Internusa PT Pandurasa Kharisma PT Kartikawira 6 France Line de Miel Acacia Honey 250gr 5.98 2 3 PT Dinamik Multi Sukses The price for the local brand of honey in Indonesia is below US $ 12 for 650 grams of natural honey in jar. (Source: Hero Supermercado en Indonesia) 6 Import Procedures* Each commodity needs certain licenses and permits to enter Indonesian territory. Requirements are found in the Ministry of Trade website, named INATRADE. Indonesia: Import Procedure Flow Chart *USDA Foreign Agricultural Service Tariff, Import Duties and Requirements 1. Tariff and import Duties Update tariff for MFN scheme, starting from January 2010 – Directorate General of Custom of Republic of Indonesia HS Code MFN (%) Description of Goods and Custom Regulation 0409.00.00.00 5 Natural Honey According to Regulation: PMK-2 131/PMK.011/2011 dated 14/12/2011, effective Since 01/01/2012 7 2. VAT is 10 % from import value (CIF + import duty) 3. Import Permits HS03 No Authority Permit Letter Regulation 1 Indonesian Surat Keterangan National Agency Impor Peraturan Kepala Badan POM No. of Drug and HK.00.05.23.1455, Food (BPOM) HK.00.05.23.3644, and HK.00.05.41.1384 regarding food in general, processed food and raw material KH.4, KH.S, KH.7, KH.8a PP 82 Tahun 2000, regarding animal 2 Animal KH.8b, KH.8c, KH.9 Quarantine of quarantine KH.10, KH.11 atau KH.12 Directorate General Livestock (Karantina Hewan) Service: 1. KH-4: 2. KH-5: Approval of disembarkation 3. KH-7: Order to take into the Animal Quarantine Installation 4. KH-12 Certificate of release Labeling Requirements In the new Food Law, food label provisions are found under Chapter VIII, Articles 96-103 and advertisement provisions are under Article 104 - 107. Formerly, the Government of Indonesia Regulation No 69/1999 has been released as a guideline to implement the food label and advertisement rule. The BPOM (National Agency of Drugs and Foods Controls) regulation No. HK 03.1.23.11.11.09909 of 2011 regulates processed food claims and advertisements, and the BPOM Regulation No. HK 03.1.5.12.11.09955 of 2011 regulates labeling requirements for processed food products. A. General Requirements Food labels contain any information concerning food in the form of a picture, writing, a combination of both, or another form accompanying the food, which is putting in, affixed to or constituting part of the food packing. Any person producing or importing food which is packed for sale (not packed for the food service or institutional sectors) into the territory of Indonesia is obligated to place a label on, within and or at the packing of the food. The supplementary label shall be done in such away so as to not easily come off, fade or be damaged, and shall be placed in a visible and readable position of packages. As of January 2013, the supplementary label should be affixed prior to customs clearance (before arriving at the Indonesian territory). Statements or claims on the benefit of the food product shall only be included if they are supported by scientific facts which can be accounted for. The label at least contains information concerning: 1. The name of the product; 2. Net weight or net contents; 8 3. Name and address of the party which produces or imports the food into the territory of Indonesia, 4. Registration Number 5. The list of material used; 6. The expiry date, month and year (except for beverage with alcohol content >10%, vinegar, sucrose and bread/cake with shelf life <24 hours) 7. Date and or production code In addition to the information above, the Government of Indonesia may determine other information which may or may not be mentioned on food labels. The information on the labels shall be written or printed in the Indonesian language, Arabic numeric and Roman text. The use of foreign terms may be conducted as long as there is no Bahasa equivalent. To enforce the Law, the BPOM issued a circular letter on September 1, 2010 to Indonesian food importers and distributors mandating the use of the Indonesian language on the labels of all packaged food products imported for retail purposes. In order to support the truth of the “halal” statement, anybody producing or importing packed food into the territory of Indonesia for trading shall have the said food first examined by accredited inspection agencies pursuant to the laws enforce. The use of backgrounds, in the form of picture and colors and other decoration, which can obscure the writing in the main part of label, is prohibited. The U.S. labeling standard does not consider false or misleading but it is different with Indonesian standard label. For example, Indonesia maintains its own Acceptable Daily Intake (ADI) or Maximum Tolerable Daily Intake (MTDI) that was designed for Indonesian consumer. B. Requirements for Other Specific Labeling Requirements In addition to the labeling criteria outlined above, the food label must stating about nutrient fact, food irradiation, organic food, the GMO, food made from natural raw material, preparation instruction, storage instruction, serving suggestion, intended for, as well as the warning. PROCESSED FOOD CONTAINING FOOD ADDITIVE In addition to the main label content, labels of foods containing additives shall contain the following matters: the food additives wording; names of groups of food additives (antioxidant, artificial sweetener, preservative, food color, enhancer); and names of food additives and food additive registration number. Carryover food additives must be written after the name of food additives. In addition to that, the artificial sweetener info information on the label includes: A statement” containing artificial sweetener” and any information if it should not be consumed by children, pregnant women, and breast feeding mothers; “for people with diabetes and/or people who require a low - calorie diet” ; if using aspartame should be written “contain fenilalanin and not suitable for fenilketonurik patient and not suitable for material heated”; if using poliol, producers should note “excessive consumption has a laxative effect”. Weight mg/kg and the sugar equivalence Acceptable Daily Intake (ADI) Food color information should include: Color Index (Cl) Word” PEWARNA PANGAN” (food coloring) or “PEWARNA MAKANAN” (food coloring) in a green box and written with green capital letter. M logo in black circle The BPOM Regulation in 2007 stated that it is not allowed to put information of free of food additive in food label and advertisement. Food additive includes anti oxidant, anti-caking agent, acidity regulator, artificial sweetener, bleaching, emulsifier, stabilizer, thickener, firming agent, preservative, color, flavor and flavor enhancer, and sequestrant. The prohibited statement includes the word “free”, “without”, “not content”, or other similar words. The BPOM once again 9 re-enforced the regulation by issuing circular letter February 29, 2008. The statement “free from food additive” may not allow appearing on the label for product distributed after October 1, 2008. Food Made From Natural Raw Materials Labeling for foods made from natural raw materials can include information that the food derived from the natural ingredients if the relevant natural raw materials content is not less than the minimum content set forth in the Indonesian National Standard (SNI). SNI 3545:2013 Indonesian National Standard No Type of Test A Organoleptic Test Unit Requirement 1 Scent Typical Honey 2 Flavor Typical Honey B Laboratory Test 1 Diastase enzyme activity DN min 3*) 2 Hidroksimetilfurfural (HMF) mg/kg max 50 3 Water Content % b/b max 22 4 Reducing sugar (calculated as glucose) % b/b min 65 5 Sucrose % b/b max 5 6 Acidity ml NaOH/ kg max 50 7 Water-insoluble solids % b/b max 0,5 8 9 Ash % b/b max 0,5 9.1 Timbal (Pb) mg/kg max 2,0 9.2 Cadmium (Cd) mg/kg max 0,2 Metal Contamination 9.3 Mercury (Hg) mg/kg max 0,03 10 Arsenic Contamination (As) mg/kg max 1,0 11 12 Chloramphenicol Microbial Contamination: 12.1 Total Plate Count 12.2 Most probable numbers of coliform 12.3 Molds and Yeasts Not detected Colony/g <5X10³ APM/g <3 Colony/g <1X10¹ Timeline for Food Registration Approval in Indonesia BPOM Type of Foods Timeline (Maximum) Foods for Specific Purposes 150 Working Days Functional Foods, Foods with claims, Foods with herbal (contains plant for medical purpose) 120 Working Days 10 Irradiated Foods, GMO, Food Additives (Flavours), Organic Foods, Milk and Milk Products, Fish and Fish Products, Alcoholic Beverages Food Additives other Flavors, Other type of Foods 100 Working Days 60 Working Days Entry Permit (SKI) BPOM issued regulations No. 27/2013 and 28/2013 on controlling imported food and food ingredients to revise former regulations issued in 2008, 2009, and 2011. The regulations require importers to obtain an entry permit (SKI) in order to release the products at customs for each shipment. The imported must have at least 2/3 shelf life remaining at time of export. To obtain the permit, an importer must provide data and documents of the following: 1. Application letter for raw material, food additive, food product import: Name and address of importer Brand name and kind of products Packaging type/weight/volume Amount of imported product Country of origin Name and address of supplier Number and date of invoice Number and date of Bill of Lading (B/L) or Airway Bill (AWB) Expiry date Lot Number /Batch Number/Production code 11 Flavor & Extracts Manufacturers Association (FEMA)/The Joint FAO/WHO Expert Committee on Food Additives (JECFA)/Enzyme Commission (EC) Number (for food additive/flavor) Port of destination 2. Product Specification for raw material, food additive, food product import Description/composition/ingredient Physical characteristic Chemical characteristic Microbiological characteristic Packaging Utilization/application Storage, term of expiry date 3. Declaration Letter with Seal Rp. 6,000 food raw material and food additive Product is not intended for retail sale Willing to be tested in the accredited laboratory at the applicant expenses 4. Certificates 5. Payment bank receipt for non-tax revenue 12 Indonesia: Flow Chart of SKI Application in BPOM *USDA Foreign Agricultural Service Phytosanitary Requirements According to Animal Quarantine of Directorate General Livestock, phytosanitary certificates shall be carried out only by or under the authority of the official national plant protection organization. The issuance of phytosanitary certificates shall be carried out by public officers who are technically qualified and duly authorized by the official national plant protection organization to act on its behalf and under its control with such knowledge and information available to those officers that the authorities of importing contracting parties may accept the phytosanitary certificates with confidence as dependable documents. The certificates at least should be filled with following information: 1. Name and address of exporter 13 2. 3. 4. 5. Number and description of packages Place of origin Name of produce and quantity declared Name of authorized officer, date and signature List of Indonesia Honey Importer and Distributor* 1. Elang Biru Indonesia, PT Address: Equity Tower Building, 35th Floor, SCBD Jl. Jend. Sudirman Kav. 52 -53 Jakarta 12190 Telp: +62-21 33 500088 Fax: +62-21 292 77888 Website: www.madumanuka.co.id Business Line: Importer & Distributor of Honey 2. Fermanto Bevfoods, CV Address: Jl. Penjernihan II No. 1 Pav Penjompongan Jakarta Pusat 10210 Telp: +62-21 573 2816 Fax: +62-21 573 6678 Website: www.fermantobevfoods.co.id Business Line: Importer, Distributor, Producer of Honey and other food & beverage 3. Gautama Indah Perkasa, PT Address: Danau Sunter, Jakarta 14350 Telp: +62-21 933 89783 Fax: +62-21 651 4114 Business Line: Importer & Distributor of Honey, snacks and groceries 4. Interfood Sukses Jasindo, PT Address: Jl. Kartini II No. 19 Ruko Pasar Baru Sawah Besar Jakarta 10710 Telp: +62-21 385 2434 Fax: +62-21 385 2435 Email: jerytanajaya@yahoo.com Website: www.interfood.co.id Business Line: Importer & Distributor of Honey, snacks and groceries 5. Kartikawira Adisukses, PT Address: Jl. Petojo Barat IV No. 4 Jakarta Pusat 10130 Telp: +62-21 6322 935/ 631 0607 Fax: +62-21 6322 965 Email: sales@kartikawira.com or isbandi_ss@kartikawira.com Business Line: Importer & Distributor of Honey, snacks and groceries 6. Mitra Bersaudara, PT Address: Jl. Dewi Sartika Raya No. 239A Cawang Jakarta Timur 13630 Telp: +62-21 801 3333 Fax: +62-21 800 1616 Email: contact@mitrabersaudara.com Website: www.mitrabersaudara.com 14 Business Line: Importer & Distributor of Honey and meals (mostly import from Saudi Arabia) 7. Nirwana Lestari, PT Address: Jl. Raya Narogong Km 7., Bojong Menteng Bekasi Jawa Barat 17117 Telp: +62-21 8204055 Fax: +62-21 8204055 Email: info@nirwanalestari.com Website: www.nirwanalestari.com Business Line: Importer & Distributor of Honey, snacks and groceries 8. Pandurasa Kharisma, PT Address: Jl. Indokarya II Blok G No. 5 Sunter Agung Podomoro Jakarta 14340 Telp: +62-21 650 5335 Fax: +62-21 650 5328 Email: pandukha@cbn.net.id or sales@pandurasa.co.id Website: www.pandurasa.co.id Business Line: Importer & Distributor of Honey, snacks and groceries 9. Safarindo Internusa, PT Address: Jl. Kemang Timur Raya No. 16 Jakarta Telp: +62-21 719 9156 Fax: +62-21 719 9147 Email: info@safarindo.com Website: www.safarindo.com Product: Honey, snacks, and groceries 10. Sukanda Djaya, PT Address: MM 2100 Industrial Town Jl. Irian Blok FF-2 Cibitung Bekasi Jawa Barat 17520 Telp: +62-21 898 1246 Fax: +62-21 8998 2010 Website: www.sukandadjaya.com Business Line: Importer & Distributor of Honey, snacks and groceries 11. Seafer General Food, PT Address: Jl. Wonosari No. 3 Kendal Jawa Tengah 51351 Telp: +62-294 383333 Fax: +62-294 382078 Email: marketing@seafer.co.id 12. Epicure Boga Prima, PT Address: Pergudangan BGR Complex, Jl. Boulevard BGR No. 1, Kelapa Gading Barat Jakarta Utara 14240 Telp: (+62-21) 45848040 Fax: (+62-21) 45848041 Business Line: Distributor of Food *Source: BPOM (National Agency of Drugs and Foods Controls) Indonesia & Directory of InterFOOD 2014 Exhibition Catalog