Improved its productivity, a SCORE participating company awarded with the Parama Karya

Noor Suryanti, owner and director of UD Pelangi Indonesia No more chaos of samples, threads and patterns scattered around the workspace of UD Pelangi Indonesia, a medium-scale handicraft company in Malang, East Java. A neat storage room and systematic production lines have been created to make it easier for workers to access materials they need and to meet work orders.

Noor Suryanti, owner and director of UD Pelangi Indonesia, admitted that these positive changes happened after her company joined the ILO’s Sustaining Competitive and Responsible Enterprises (SCORE) programmes in 2015. The SCORE programme has implemented a training series that seeks to improve productivity while upholding workers’ rights.

The SCORE programme has played an important role in making it possible for my company to be awarded with the Parama Karya award."

Noor Suryanti

SCORE is designed to enhance productivity and competitiveness of small and medium enterprises (SMEs). Launched in Indonesia in 2010 and initially led by the ILO, the Programme has now become a tripartite programme, implemented together by government, workers’ organizations and employers’ organizations.

Suryanti explained that after the implementation of SCORE Module 1 on Workplace Cooperation programme, under the guidance of productivity instructor from Provincial Training Center in East Java Province, the working environment has changed. “My employees are more motivated, and we have a better communication system that has improved the working performance, strengthened the cooperation and enhanced tasks distribution,” she said.

Furthermore, the production lines have shown good results. Reject and rework rates have both decreased from 10 percent to 5 percent which also means an increase of 10 per cent for the work efficiency. The high increase in productivity encouraged the business of UD Pelangi to further continue its objective to upgrade from a small-sized business to a medium-sized one.

“The SCORE programme has played an important role in making it possible for my company to be awarded with the Parama Karya award,” said Noor Suryanti, proudly. UD Pelangi was one of 22 companies received the 2015 Parama Karya awarded by the President Joko Widodo (Jokowi) at the State Palace, Jakarta, last November.

This is the ultimate goal of the SCORE programme to have small- and medium-enterprises like UD Pelangi and other participating companies to be more competitive in national and global market."

Januar Rustandie, the ILO-SCORE’s Programme Manager in Indonesia

The Parama Karya award is the highest productivity award for small- and medium-sized enterprises from the Government of Indonesia. In addition to UD Pelangi, four other SCORE participating small and medium sized enterprises also received the award: UD Kreasi Lutvi from North Sumatra, UD Pelangi Indonesia from East Java, PT Mega Global Food Industry from East Java, PT Lambang Jaya from Lampung and CV Batik 16 from Semarang.

“This is the ultimate goal of the SCORE programme to have small- and medium-enterprises like UD Pelangi and other participating companies to be more competitive in national and global market,” said Januar Rustandie, the ILO-SCORE’s Programme Manager in Indonesia.

The training package has five modules that include leadership and workplace cooperation. One common issue from enterprises and workers of the small and medium scales is the lack communication and coordination skills that lead to lack of quality control and work efficiency. In addition to the classroom trainings, the trainers also directly assist companies through site visits.

Continuing to improve its business, with support from the SCORE programme, UD Pelangi is now building a business network with other SCORE participating companies. “We are delighted to have an opportunity to develop a business network with a more established company. We had a chance to visit PT Mega Global Food Industry to further learn best practices and how to improve the business. This is really valuable for the future of our business,” Suryanti concluded.