"Standardization contributed 21.2 percent to the labor productivity growth and 14.5 percent to the gross domestic product (GDP) growth in Indonesia," Achmad remarked.
Citing the Centre for Economics and Business Research London's "The Economic Impact of Standards in Indonesia" report in July 2023, the agency head explained that an increase in standardization significantly impacts overall economic growth.
During the 1994-2019 period, the number of standards in Indonesia grew by 6.1 percent annually, while the average annual growth of labor productivity during that period was recorded at 4.5 percent.
According to Achmad, standardizations can help the industry overcome various challenges that if not addressed, will negatively impact businesses, policymakers, and consumers.
"Standards have a role in increasing business productivity and efficiency by reducing production costs, expanding market opportunities, and increasing overall effectiveness in goods and services," he stated.
He highlighted that standards are interrelated to other factors, such as technology and innovation progress.
He explained that several users, both companies and organizations, have recognized the benefits of implementing the Indonesian National Standard (SNI), such as increasing customer trust.
"We received many testimonials from business actors after they implemented SNI," he remarked.
Achmad cited as an example that two companies received the SNI Awards last year, namely PT Pertamina Lubricants which received the platinum SNI Award, and PT Schneider Indonesia which garnered the gold SNI Award.
"They said that the standard implementation indirectly increases the value of the brand and the company's market share. In addition, implementing standards can protect employees, because, without standards, health and safety will be compromised," he remarked.
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Translator: Lintang P, Kenzu
Editor: Aditya Eko Sigit Wicaksono
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