Safe Food, Safe Business: Avoiding Complaints and Legal Sanctions

The culinary industry continues to grow rapidly, starting from micro-businesses such as street food vendors to large enterprises producing food on a mass scale. However, behind this massive profit opportunity, lies a huge responsibility: maintaining food safety. Consumers are increasingly aware of the importance of safe food consumption, and government regulations regarding food safety are becoming stricter. When this safety aspect is neglected, business actors can face customer complaints, reputational loss, and even severe legal sanctions.

This article will review the importance of food safety for customer satisfaction and business sustainability, as well as the legal and financial risks that may occur if the food sold is declared unsafe.

The Importance of Food Safety in the Business World

1. Building Consumer Trust
   Food safety is the main foundation in building customer trust. Consumers do not only buy the taste, appearance, or price of food, but also the guarantee that the food does not harm health. Once this trust is damaged, it is very difficult to restore it. Cases of food poisoning, raw material contamination, or the use of hazardous ingredients can make customers switch to competitors in a short time.
2. The Key to Customer Satisfaction and Loyalty
   Customers who feel safe and satisfied will be more likely to return and recommend your business. On the contrary, disappointed customers, especially those who experience poisoning or other health issues, will not only stop buying but can also spread their bad experiences through social media or public review platforms, which can damage the business reputation extensively.
3. Reducing Operational Risks
   Poor food safety can result in operational shutdowns by authorities such as BPOM or the Health Office, product recalls from the market, or even business closures. These costs can be much larger than investing in a good food safety system from the very beginning.

Food Safety Regulations in Indonesia

1. Food Law No. 18 of 2012
   This Law regulates that everyone who produces food is obliged to guarantee the safety, quality, and nutrition of the food they produce. If a violation occurs, then business actors can be subject to administrative to criminal sanctions. Article 135 of Law No. 18 Year 2012 states: “Any person who intentionally produces and/or trades food that does not meet safety, quality, and nutrition standards as referred to in Article 68, shall be punished with imprisonment for a maximum of 2 (two) years or a fine of a maximum of Rp 4,000,000,000 (four billion rupiahs).”
2. BPOM Regulations
   BPOM (Indonesian Food and Drug Authority) regulates distribution licenses, food labels, and production processes. BPOM also conducts unannounced inspections, product testing, and has the authority to recall products from circulation if they are found to contain hazardous ingredients, such as formalin, borax, rhodamine B, or pathogenic microorganisms.
3. SNI (Indonesian National Standard)
   Food products are required to meet quality and safety standards based on SNI provisions. Although not all types of products are required to have SNI, for those that are, non-compliance with SNI can lead to administrative sanctions or distribution bans.

Legal Impacts and Losses Due to Unsafe Products

1. Legal Sanctions
   Some forms of sanctions that can be imposed on food business actors who are negligent regarding food safety include:

• Imprisonment and Fines: As mentioned in the Food Law, business actors can be imprisoned for up to 2 years and subject to fines of billions of rupiahs.
• Product Recall: Products proven to be unsafe will be recalled from circulation. This can incur redistribution costs and logistical losses.
• Revocation of Distribution License: BPOM or related institutions can revoke distribution licenses or food production certificates.
• Consumer Lawsuits: Consumers who feel aggrieved can file civil or criminal lawsuits, with demands for compensation that are not small.
• Inclusion in Blacklist: The business name can be listed on the lawbreaker list, which worsens the reputation in the eyes of investors and business partners.

1. Financial Losses
   Losses due to selling unsafe products are huge, including:

• Direct losses due to product recalls, loss of inventory, and compensation costs.
• Reputation loss, which has a long-term impact on declining sales.
• Loss of consumer trust, which is very expensive to repair.
• Legal and lawyer fees incurred when facing lawsuits or court processes.
• Loss of business license, which means the business must close and lose all investments.

How to Maintain Food Safety

1. Implementation of HACCP System (Hazard Analysis and Critical Control Points)
   HACCP is an international system to analyze and control hazards associated with food safety, starting from raw materials, production processes, to distribution. Implementing HACCP helps business actors identify critical control points that can cause food to be unsafe.
2. Employee Training and Certification
   All workers, from the kitchen to packaging, need to be equipped with food safety training. Employees who understand sanitation, food processing, and storage will help prevent cross-contamination and the growth of harmful bacteria.
3. Raw Material Supervision
   Ensure raw materials are obtained from trusted suppliers and accompanied by valid documents, including a distribution license from BPOM if required. Avoid buying materials that do not have labels, have unclear origins, or are stored in unhygienic conditions.
4. Hygiene and Sanitation of the Production Environment
   Food processing areas must be clean, well-ventilated, and routinely cleaned. Use cooking and storage utensils that meet health standards.
5. Proper Packaging and Storage
   Good packaging is not only visually appealing but also protects the product from contamination. Storage must also consider temperature, humidity, and storage duration.

Case Studies: Fatal Consequences When Food Safety is Ignored

Case 1: Food Poisoning at School

In 2022, dozens of elementary school students in West Java experienced poisoning after consuming snacks from the school canteen. After testing, the food was found to contain Salmonella bacteria. The small business actor who provided the food was legally processed, and subjected to fines and a ban on selling.

Losses:

• Business closed permanently
• Lawsuits from students’ parents
• School reputation was also affected

Case 2: Instant Noodle Products Containing Ethylene Oxide

In 2023, an instant noodle brand from Indonesia received international spotlight because it was found to contain ethylene oxide beyond safe limits. Importing countries like Taiwan and Malaysia temporarily banned the product.

Losses:

• Decline in sales up to billions of rupiahs
• International product recall
• Decline in the manufacturer’s stock value

Food Safety is an Investment, Not a Cost

In the food business world, food safety is not just a legal obligation, but also a smart business strategy. Ensuring that the food produced or sold is safe for consumption will strengthen the brand, increase customer trust, and protect the business from various legal and financial risks.

Given the fatal impact of negligence on food safety, it is time for both small and large business actors to make food safety a top priority, not only to comply with regulations, but for the sustainability and growth of the business itself.

Magfood Provides Specially Formulated Food Seasoning for Your Business

Magfood is a manufacturer that provides various types of seasoning powder, cooking seasoning, and premix, which have been CPPOB-certified and have distribution licenses from BPOM. Magfood also has Halal and HACCP certificates, which guarantee product quality and safety. Supported by a competent research & development (R&D) division, Magfood is committed to formulating and developing innovative recipes that follow the latest trends and meet high quality standards. This allows us to compete effectively with multinational companies in this industry.

We understand that every business has unique needs, therefore, Magfood offers custom formulation services for seasonings. With this approach, you can create products with suitable flavors and competitive prices, so that the food and beverages you offer have their own “unique taste”. This uniqueness not only distinguishes your product from competitors but also provides a significant competitive advantage. In addition, our products can be adjusted to the positioning strategy you have set, thereby helping you achieve business goals more effectively. Join Magfood and improve the quality and appeal of your products in the market.

Magfood Inovasi Pangan

Jl. Duren Tiga Raya No. 46, Pancoran, Jakarta Selatan – Indonesia 12760

Telp : +6221-791 93162 (ext 101)

+6221 791 95 134

Fax : +6221-791 95364

www.magfood.com