SCORE Indonesia Case Study: SCORE Training helps five companies win national productivity awards

Five SCORE trained enterprises were honoured to receive 2015 PARAMAKARYA awards from President Joko Widodo at a ceremony in the Presidential Palace in Jakarta

Five SCORE enterprises were honoured to receive 2015 PARAMAKARYA awards from President Joko Widodo at a ceremony in the Presidential Palace in Jakarta. The winning SCORE firms were UD Kreasi Lutvi (North Sumatra province); UD Pelangi Indonesia (East Java province) PT; Mega Global Food Industry (East Java province), PT. Lambang Jaya (Lampung province), and; CV Batik 16 Semarang (Central Java province).

President Jokowi hands PARAMAKARYA awards to representatives from winning enterprises Small and Medium Enterprises on November 24, 2015

The PARAMAKARYA award is the highest national productivity award for small and medium enterprises (SMEs) and is overseen by the Ministry of Manpower (MoM). In his speech, President Jokowi highlighted that Indonesian companies must be fit to compete, not only locally but internationally. “This is the era of competition. Companies that are not competitive […] will not be able to survive. What happens now is no longer competition among individuals, cities or provinces, but among countries.”

M. Hanif Dhakiri, Minister of Manpower (in the MoM press release) pointed out that the award was established because, "The government wants to acknowledge SMEs that have actively implemented a concept of quality and productivity at the national level," The performance of the awarded companies is seen as setting a good example that should incentivize other SMEs to grow and move forward.

Mr. Dhakiri explained that the awarded SMEs went through a rigorous selection and assessment porcedure, carried out by the independent auditors and judges, drawn from the Government (Ministry of Manpower), Employers’ Associations, Trade Unions, Academia and the National Productivity Council.
The criteria for selection involved enterprises demonstrating evidence of their efforts and performance in a range of areas: leadership; strategic planning; customer orientation and market expansion; human resource and organizational competence development; data tracking and analysis; process management and business results.

Mr. Dhakiri also confirms the importance of enterprise upgrading their practices so they can achieve growth. "The application of techniques and methods for productivity improvement in these SMEs has encouraged an increase in added value. This has implications for business expansion and employment creation and for improvements in workers’ welfare. These [improvements] will eventually contribute to economic growth and national competitiveness," said Mr. Dhakiri.

Ms. Yanti, the owner and director of UD Pelangi Indonesia, a handicraft company honored with an award that completed SCORE Training in 2015, is one example that shows the productivity and growth dynamic the award is designed to encourage. Ms Yanti confirms that the SCORE Training, delivered under the guidance of productivity instructors from Provincial Productivity Center in East Java province, motivated the company, helped them in a practical way to improve their workplace practices and were a driver for growth: they have since grown from a small to a medium-sized company. She is, therefore, clear that completing SCORE Training played an important role in achieving success in the PARAMAKARYA award competition.

Ms. Karlonta, a trainer from Lampung province that delivered SCORE Training to another PARAMAKARYA award winner, PT. Lambang Jaya, also points to the help that SCORE Training can bring to firms that have growth, and the PARAMAKARYA awards, in their sights. During the training follow-up visits, the trainer saw significant pro-productivity changes being implemented by the company, including notable impacts on overall cleanliness, workplace organisation and worker facilities (such as toilets, employee lockers and the provision of drinking water.) The range of changes ensured that the Training delivered benefits for both the management and employees.

SCORE Training was the first training program that PT Lambang Jaya had signed up for whereas Ms. Yanti is able to compare the training to past experiences. She confirms that SCORE Training is different from other training programs because it combines classroom training with on-site consultation visits. She also points to the step-by-step learning, including planning, building cooperation and improvement task distribution, which is achieved through the creation of a joint (worker-manager) Enterprise Improvement Team or EIT. Importantly, the success in the awards has inspired Ms Yanti to aim still higher: her aim is to make SCORE continuous and cooperative improvement approach part of the company’s work culture for the long term.

List of SMEs winner of 2015 PARAMAKARYA Award

Small Enterprise Category
1. UD Ulle Kareng (Aceh)
2. Serba Susu (Jawa Barat)
3. Kokoci (Sumatra Barat)
4. Dalang Collection (Riau)
5. Pia Saronde (Gorontalo)
6. Kioski Gallery (Bali)
7. UD Kreasi Lutvi (Sumatra Utara)
8. CV Deschino Sport (Jakarta)
9. PT Batik Banten Mukamas (Banten)
10. UD Pelangi Indonesia (Jawa Timur)
11. Lestari Indah (Kalimantan Tengah)
Medium Enterprise Category
1. PT Mega Global Food Industry (Jawa Timur)
2. CV Volva Indonesia (DIY)
3. PT Dimembe Nyiur Agripo (Sulawesi Utara)
4. PT Bali Tangi (Bali)
5. PT Allusan Batik (DIY)
6. PT Lambang Jaya (Lampung)
7. CV Batik Semarang 16 (Jawa
8. CV Tria Rumah Busana (Sumatra Selatan)
9. PT Busur Inti Indo Panah (Sumatra Utara)
10. Tenun Siak Wan Fitri (Riau)
11. PR Kharisma Rotan Mandiri (Jawa Tengah).
Highlighted companies are SCORE trained enterprises in winners list