RI firms face QC, promotion problems<\/p>\n
Tony Hotland, Jakarta<\/p>\n
Most of Indonesia's small and medium enterprises (SMEs) cannot
\nenter the United States market, the world's largest, due to weak
\nquality control and a dearth of opportunities for promoting their
\nproducts.<\/p>\n
\"Only about 1 percent of our SMEs have ISO (International
\nOrganization for Standardization) certificates, while the U.S. is
\ncareful of incoming products and demands quality control
\nassurances, such as certificates or the green label in the case
\nof furniture products,\" Tjahjanto Budisatrio of the Management
\nInstitute at the School of Economics, University of Indonesia,
\nsaid on Wednesday.<\/p>\n
Together with the U.S.-Indonesia Society (USINDO), the
\ninstitute cohosted a seminar on Monday on strengthening
\npartnerships between both countries in economic and community
\ndevelopment. It was attended by representatives of SMEs, the
\nNational Development Planning Board (Bappenas), and the Ministry
\nof Industry and Trade.<\/p>\n
\"Many SMEs pay little attention, if any, to such certification
\nas it's like an invisible investment to them, and they're unaware
\nof how it can improve the prospects of their companies. Even if
\nthey are aware, they decide not to get one since as it's very
\nexpensive,\" said Tjahjanto.<\/p>\n
He said that it could cost up to Rp 80 million (US$8,888) in
\nIndonesia to obtain an ISO certificate, while it cost the
\nequivalent of around Rp 30 million in China.<\/p>\n
\"USINDO will try to lobby the U.S. and ISO providers so that
\nIndonesia's SMEs can pay less for certification -- at least half
\nthe current fee. Hopefully, they will be allowed to pay by
\ninstallment over a two-year period,\" explained Emil Salim, a
\nmember of USINDO's board of trustees.<\/p>\n
USINDO will propose that the U.S. Congress donate $100,000 per
\nyear to pay consultants and improve the circumstances of
\nIndonesia's SMEs. It hopes that up to 80 SMEs will be able to
\nobtain ISO certificates each year.<\/p>\n
Emil, who is also a former environment minister, added that
\nduring the seminar, Indonesian SMEs also wanted assured markets
\nfor their products and more opportunities to promote them in the
\nU.S. through high profile exhibitions.<\/p>\n
Around 98 percent of firms in the country are SMEs.<\/p>\n
The seminar also discussed the capabilities of Indonesian
\nports in handling Indonesian exports.<\/p>\n
\"We plan to monitor all ports in Indonesia. But our main goal
\nis to improve the human resources that operate the ports instead
\nof the infrastructure,\" said Budi Soetjipto, also a consultant
\nwith USINDO the institution.<\/p>\n
\"We'll also coordinate with the Ministry of Communications
\nbecause the ministry has a program to upgrade a number of ports
\nto meet the ISPS (International Ship and Ports Security) Code,\"
\nsaid Budi.<\/p>\n
The obligation to apply the ISPS code was imposed last year by
\nthe International Maritime Organization (IMO). As a consequence,
\nIndonesian ports and ships that provide international services
\nmust meet certain security standard by the end of June.<\/p>\n
There are only five ports considered \"ready\", but even these
\nhave yet to adopt the code. They are Tanjung Priok, Tanjung
\nPerak, Tanjung Emas, Belawan, and Pelabuhan Panjang port.<\/p>",
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"sponsor": "Okusi Associates",
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