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)