Local companies reluctant to seek ISO certification

Local companies reluctant to seek ISO certification

JAKARTA (JP): Most companies in Indonesia have yet to make use
of the international quality standardization known as ISO,
despite its increasing importance in global trade, a Ministry of
Industry and Trade official has said.

Atih Surjati Herman said on Wednesday that many companies,
especially small and medium-scale ventures, had been slow to make
use of the standards because of cost and a lack of information.

"There are at least 5 percent of about 2 million small and
medium-scale companies which have the potential to get ISO
standardization," Atih told reporters after addressing a seminar
on the role of ISOs in globalization.

According to the Institute for Indonesian Development and
Business Information, which organized the two-day seminar, 600
firms now have ISO certification, up from around 250 in 1996.

Atih said that most of around 200 small and medium-scale firms
that have some kind of quality management system do not have ISO
certification.

The government has attempted to introduce ISO standardization
gradually because it already has its own quality control system
run by the National Standardization Board (BSN), she added.

The board also represents the country in the International
Organization of Standardization, which issues the ISO 9000 for
management quality and ISO 14000 for environmental impact. The
ISO 9000 is the most widely used standardization in the world.

Atih said the government provides subsidies worth Rp 10
million (US$1,369) to small and medium-scale companies to help
them get ISO certification.

Last year, 350 companies were given the subsidies and the
government plans to help a similar number this year, she said.

Arief Safari from PT Prima Inti Mutu Andalan said global
economic integration would minimize tariff barriers.

However, he predicted that saturated markets in developing
countries would cause domestic economic growth to slow down and
lead to an expansion of export-oriented industries.

Competition will make customers more fickle and they will
demand constant satisfaction, he added.

"Under these circumstances, it is natural that some quality
experts predict that only producers that continuously improve
their products and services will survive the global competition,"
he said. (das)