How Formulation Policy Changes Are Impacting Indonesian Crop Inputs
12 September 2023 Counterfeit or poorly packaged products that damage crops or are minimally effective are just one of the reasons the Indonesian government is implementing local formulation policy for every company.
Much of the pesticide products used by Indonesian growers are either locally formulated or repacked. “The same standards of quality must be maintained. For example, the product must conform with the specifications submitted during registration,” said Dr. Piyatida “Tung” Pukclai, Regional Sales & Regulatory Policy Manager (Asia-Pacific), Knoell. “It is important that the Indonesia government encourage local formulation plants to maintain their own quality control capability, including their own, or access to other laboratories. The function of the government will be to monitor that these plants produce quality products.”
Piyatida “Tung” Pukclai, Knoell
Products that do not meet approved specifications must be confiscated, said Pukclai. The subsequent action will depend upon the individual case – such actions may include re-labelling for another use, reformulating, or disposal.
An official government laboratory (or accredited laboratory appointed by government) “should be charged with monitoring the quality of pesticides, especially local formulations, to ensure the effectiveness of quality control programs, appropriate legal sanctions must be imposed on violations. It will affect the crop protection industry but considering this, quality control should continue as the product goes through the market chain,” Pukclai said.
To get a better understanding of how these changes will affect the local crop input market and to gain some key insights into the region’s ag industry, AgriBusiness Global interviewed Final Prajnanta, Vice Chairman for Indonesian CropCare and Director for Royal Agro Indonesia. Prajnanta will be presenting at the AgriBusiness Global SE Asia Conference and Summit that will be held at the Pullman Jakarta Central Park in Jakarta, Indonesia on 8-9 November. Prajnanta will provide an “Introduction to the Indonesian Agriculture Market” where he will discuss the top opportunities and challenges in the country’s growing ag market. See the entire conference schedule.
AgriBusiness Global: How do you think the Indonesian government should implement the local formulation policy for every company – will it affect the crop protection industry? Will it provide any opportunities and if so, who for?
Final Prajnanta, Indonesian CropCare and Royal Agro Indonesia
Final Prajnanta: It will be beneficial to carry out local formulation in order to lower unemployment and make sure the formulation process complies with GMP. Therefore, the product’s quality must be high. For CropCare members who operate toll manufacturing businesses, it is a good opportunity.
ABG: What are three goals CropCare will be working toward in 2023-2024?
FP: CropCare’s top three objectives are to: 1) anticipate and reduce the use of smuggled products in collaboration with the MoA (Ministry of Agriculture) Pesticide Supervisory Commission; 2) increase member capacity to formulate products in accordance with GMP (good manufacturing practice); and 3) turn the association into a significant government partner that benefits the association’s members.
ABG: What potential does CropCare see in the SE Asia region, especially in Indonesia?
FP: Due to the enormous potential crops like rice, palm oil, corn, rubber as well as the high local consumption, Indonesia is one of the most promising markets for agricultural businesses in the SE Asian region.
ABG: What changes do you think will be happening for 2024 that people should be aware of?
FP: Of course, there will be a new President for Indonesia. Global food issues will be a significant concern, and Indonesia is an agricultural nation that must be self-sufficient. In addition to rice, the Indonesia government targets self-sufficiency for several other commodities, such as corn, chili, shallots, and sugar.
ABG: Does the Indonesian government support drone use? If so, do you expect a growth in this sector for formulations specific to drones?
FP: The government will soon implement regulations due to the widespread use of drones, especially in regard to user safety and the need to start adapting pesticide formulation to drone technology.
ABG: Anything else you would like to add?
FP: The development of Indonesia’s pesticide and fertilizer industries will necessitate careful consideration of environmental and safety issues. On the other side, organic pesticides and bio-stimulants will also gain importance.
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