The launch of SCORE programme phase II: Indonesia commits to assist SMEs be more productive and competitive
Small medium enterprises (SMEs) are one of the economic pillars of Indonesia. In 2012, SMEs have contributed 57.4 per cent to the Gross National Product and also play a great role in tackling unemployment by employing 107.6 million of workers (data from the Ministry of Cooperative and SMEs). Considering the strategic role of SMEs in the Indonesian economy, it is important to improve the productivity and competitiveness of SMEs.
JAKARTA (Joint Press Release): Small medium enterprises (SMEs) are one of the economic pillars of Indonesia. In 2012, SMEs have contributed 57.4 per cent to the Gross National Product and also play a great role in tackling unemployment by employing 107.6 million of workers (data from the Ministry of Cooperative and SMEs). Considering the strategic role of SMEs in the Indonesian economy, it is important to improve the productivity and competitiveness of SMEs.
In addition, SMEs can often be more flexible, innovative, and responsive to market demands than larger enterprises. However, their small size also makes SMEs particularly vulnerable to external shocks. So, in Indonesia, as in many other countries, SMEs have been finding it difficult to sustain operations.
Based on the successful implementation of the first phase of the Sustaining Competitive and Responsible Enterprises (SCORE) programme, the Ministry of Manpower and Transmigration, together with trade unions and employers’ organizations, will launch the second phase of SCORE programme on Monday, 26 May 2014, at Tridharma Room, Ministry of Manpower and Transmigration, Jakarta. Supported by the International Labour Organization (ILO), the launch also marks the national adoption of the SCORE’s programme.
The launch will be opened by Minister of Manpower and Transmigration, H.E Muhaimin Iskandar. It will also mark by the signing of the commitment plaque by the Minister of Manpower and Transmigration, H.E Muhaimin Iskandar, Chair of the Indonesian Employers’ Association (APINDO), Sofjan Wanandi, Heads of the National Trade Union Confederations, and witnessed by the Ambassador of Switzerland for Indonesia, H.E Heinz Walker-Nederkoorn and the Country Director of the ILO in Indonesia, Peter van Rooij.
“SMEs play an important role in Indonesia in terms of employment creation and contribution to the local as well as national economies. Therefore, through the second phase of the SCORE programme, the Ministry of Manpower and Transmigration is committed to collaborate with both workers and employers as well as the ILO to ensure better, more productive and more competitive SMEs that in turn lead to higher productivity and quality and to move forward to a better future of Indonesia,” said Muhaimin Iskandar, the Minister of Manpower and Transmigration.
The SCORE programme is a global programme that was originally led by the ILO and then developed and implemented in Indonesia by tripartite—the Ministry of Manpower and Transmigration, the Indonesian Employers’ Association (APINDO) and Confederations of Trade Unions—and the ILO. The SCORE programme was initially funded by the Swiss State Secretariat for Economic Affairs (SECO) and the Norwegian Agency for Development (NORAD). The SCORE programme is designed to help SMEs worldwide, including Indonesia, to boost quality and productivity, improve working conditions and reduce their environmental footprint. In particular, the programme introduces SMEs to the productivity gains that can come from improvements in workplace collaboration and improved communication between employers and workers.
”The collaboration in the second phase of the SCORE programme will also be extended to other stakeholders, among others, including the Ministry of Industry, the Ministry of Cooperatives and SMEs and the Ministry of Internal Affairs,” added the Minister Muhaimin.
Targeted to SMEs with 30 – 250 workers from various sectors, the first phase of the SCORE programme was launched in 2010 for three years covering five modules of the SCORE programme on workplace cooperation, quality management, productivity and cleaner production, human resources management and occupational safety and health. The first phase of the programme covered a total of 91 SMEs in six provinces (DKI Jakarta, Central Java, South Sulawesi, South East Sulawesi, East Kalimantan and Lampung).
The participating enterprises have witnessed increased productivity, better working conditions and improved communication between management and workers. The enterprises also managed to reduce the number of reworked and rejected products. In addition, three SCORE’s enterprises were awarded with Paramakarya awards—an award given by the Government of Indonesia for enterprises with the highest productivity.
“Three months after participating in the SCORE’s training programme, we managed to expand our market share and lead the local market of Makassar thanks to the increased productivity,” said Niko Sugiharto, Director of CV ATS in Makassar as one of the participating enterprises of SCORE. CV ATS was awarded with the Paramakarya in 2013.
In addition, the evaluation of SCORE during 2010-2013 shows that the application of 5S (a methodology for productive work and business) in the participating enterprises had increased from 4 percent to 88 percent, quality policies had increased from 27 per cent to 41 per cent, around 56 per cent of the participating companies have successfully reduced their product rejects and around 40 per cent of companies have reduced their use of energy, raw materials and wastes.
The ILO’s Country Director Peter van Rooij said that SMEs are key to creating and sustaining decent work for all. “Learning from the successful implementation of the SCORE programme, the ILO greatly supports the continuation and adoption of the SCORE programme in Indonesia. Through the SCORE programme and its modules, the ILO has continued to support the improvement of SMEs in Indonesia which will help them to be more competitive in local and global markets.”
“The key to sustainable economic development leading to effective poverty reduction lies in a successful, competitive SME sector. Thus, Switzerland and the Swiss State Secretariat for Economic Affairs continue to support initiatives taken to improve the competitiveness and productivity of SMEs. We believe that SMEs can be competitive in national and global markets, that they can benefit from the value created in increasingly global value chains, thereby creating jobs and improve industrial relations,” said Martin Stottele, Head of Economic Development Cooperation of SECO.
Indonesia has been chosen as one of eight countries besides India, China, South Africa, Ghana, Viet Nam, Colombia and Peru to implement the SCORE programme. More than 60 per cent of the Indonesian workforces are employed in SMEs. Thus, the key to sustainable economic development leading to effective poverty reduction of the country lies in successful, competitive SMEs.
For further information, please contact:
Januar Rustandie
National Programme Manager of SCORE
Tel. +6221 391 3112 ext. 150
Email
Gita Lingga
Media Officer
Tel.: +6221 3913112 ext. 115
Email
In addition, SMEs can often be more flexible, innovative, and responsive to market demands than larger enterprises. However, their small size also makes SMEs particularly vulnerable to external shocks. So, in Indonesia, as in many other countries, SMEs have been finding it difficult to sustain operations.
Based on the successful implementation of the first phase of the Sustaining Competitive and Responsible Enterprises (SCORE) programme, the Ministry of Manpower and Transmigration, together with trade unions and employers’ organizations, will launch the second phase of SCORE programme on Monday, 26 May 2014, at Tridharma Room, Ministry of Manpower and Transmigration, Jakarta. Supported by the International Labour Organization (ILO), the launch also marks the national adoption of the SCORE’s programme.
The launch will be opened by Minister of Manpower and Transmigration, H.E Muhaimin Iskandar. It will also mark by the signing of the commitment plaque by the Minister of Manpower and Transmigration, H.E Muhaimin Iskandar, Chair of the Indonesian Employers’ Association (APINDO), Sofjan Wanandi, Heads of the National Trade Union Confederations, and witnessed by the Ambassador of Switzerland for Indonesia, H.E Heinz Walker-Nederkoorn and the Country Director of the ILO in Indonesia, Peter van Rooij.
“SMEs play an important role in Indonesia in terms of employment creation and contribution to the local as well as national economies. Therefore, through the second phase of the SCORE programme, the Ministry of Manpower and Transmigration is committed to collaborate with both workers and employers as well as the ILO to ensure better, more productive and more competitive SMEs that in turn lead to higher productivity and quality and to move forward to a better future of Indonesia,” said Muhaimin Iskandar, the Minister of Manpower and Transmigration.
The SCORE programme is a global programme that was originally led by the ILO and then developed and implemented in Indonesia by tripartite—the Ministry of Manpower and Transmigration, the Indonesian Employers’ Association (APINDO) and Confederations of Trade Unions—and the ILO. The SCORE programme was initially funded by the Swiss State Secretariat for Economic Affairs (SECO) and the Norwegian Agency for Development (NORAD). The SCORE programme is designed to help SMEs worldwide, including Indonesia, to boost quality and productivity, improve working conditions and reduce their environmental footprint. In particular, the programme introduces SMEs to the productivity gains that can come from improvements in workplace collaboration and improved communication between employers and workers.
”The collaboration in the second phase of the SCORE programme will also be extended to other stakeholders, among others, including the Ministry of Industry, the Ministry of Cooperatives and SMEs and the Ministry of Internal Affairs,” added the Minister Muhaimin.
Targeted to SMEs with 30 – 250 workers from various sectors, the first phase of the SCORE programme was launched in 2010 for three years covering five modules of the SCORE programme on workplace cooperation, quality management, productivity and cleaner production, human resources management and occupational safety and health. The first phase of the programme covered a total of 91 SMEs in six provinces (DKI Jakarta, Central Java, South Sulawesi, South East Sulawesi, East Kalimantan and Lampung).
The participating enterprises have witnessed increased productivity, better working conditions and improved communication between management and workers. The enterprises also managed to reduce the number of reworked and rejected products. In addition, three SCORE’s enterprises were awarded with Paramakarya awards—an award given by the Government of Indonesia for enterprises with the highest productivity.
“Three months after participating in the SCORE’s training programme, we managed to expand our market share and lead the local market of Makassar thanks to the increased productivity,” said Niko Sugiharto, Director of CV ATS in Makassar as one of the participating enterprises of SCORE. CV ATS was awarded with the Paramakarya in 2013.
In addition, the evaluation of SCORE during 2010-2013 shows that the application of 5S (a methodology for productive work and business) in the participating enterprises had increased from 4 percent to 88 percent, quality policies had increased from 27 per cent to 41 per cent, around 56 per cent of the participating companies have successfully reduced their product rejects and around 40 per cent of companies have reduced their use of energy, raw materials and wastes.
The ILO’s Country Director Peter van Rooij said that SMEs are key to creating and sustaining decent work for all. “Learning from the successful implementation of the SCORE programme, the ILO greatly supports the continuation and adoption of the SCORE programme in Indonesia. Through the SCORE programme and its modules, the ILO has continued to support the improvement of SMEs in Indonesia which will help them to be more competitive in local and global markets.”
“The key to sustainable economic development leading to effective poverty reduction lies in a successful, competitive SME sector. Thus, Switzerland and the Swiss State Secretariat for Economic Affairs continue to support initiatives taken to improve the competitiveness and productivity of SMEs. We believe that SMEs can be competitive in national and global markets, that they can benefit from the value created in increasingly global value chains, thereby creating jobs and improve industrial relations,” said Martin Stottele, Head of Economic Development Cooperation of SECO.
Indonesia has been chosen as one of eight countries besides India, China, South Africa, Ghana, Viet Nam, Colombia and Peru to implement the SCORE programme. More than 60 per cent of the Indonesian workforces are employed in SMEs. Thus, the key to sustainable economic development leading to effective poverty reduction of the country lies in successful, competitive SMEs.
For further information, please contact:
Januar Rustandie
National Programme Manager of SCORE
Tel. +6221 391 3112 ext. 150
Gita Lingga
Media Officer
Tel.: +6221 3913112 ext. 115