A Scheme to Increase Indonesian National Standard

Certification in the Batik SMEs (Case Study at XYZ SME)

Kurnia Tri Atmojo1, a), Fakhrina Fahma2, b) and Wahyudi Sutopo3, c)
1
Industrial Engineering Department, Faculty of Engineering, Universitas Sebelas Maret, Surakarta 57126,
Indonesia.
a)
Corresponding author: kurniatria@gmail.com
b)
fakhrinafahma@staff.uns.ac.id
c)
wahyudisutopo@staff.uns.ac.id

Abstract. One of the commodities that are the focus of the government in carrying out the empowerment of SMEs in
Indonesia is Batik SMEs. To compete in the global market, Batik must improve quality standards. In Indonesia batik
standards are regulated in SNI 8302:2016, namely SNI Batik Tulis - Fabrics - Characteristics, quality requirements, and
test methods, but the level of awareness of batik producers to implement this is still very low. Some of the factors that led
to the low awareness of implementation of batik were that the utilization of product certification institutions (LSPro) had
not been optimized for the sake of SNI implementation which focused more on research, producers felt that the economic
benefits of implementing this could not be felt, until opinion developed that SNI implementation was complicated and
expensive, because of the lack of direct socialization to the Batik SMEs. This research was conducted to provide an
overview of SNI certification strategies, which aimed to help the Batik community to better understand the flow of
activities and documents in a business process and increase implementation rate of SNI for Batik Products. The making
of this workflow refers to the SNI Batik Tulis Criteria and administrative requirements according to the scheme that has
been established by the National Standardization Agency (BSN). Then, the workflow created is expected to facilitate
batik SMEs to apply SNI Batik and obtain SNI Certificates on their products.

INTRODUCTION
Along with the times, people's understanding of batik is increasingly diverse and many are starting to think with
modern logic. Economic considerations and industrialization of batik led to a new process technology that was
slightly deviated from the initial concept of batik, so that imitation batik products emerged [1]. Standardization is
needed to match people's perception of actual batik [2]. The initial stage is fulfilled by the stipulation of SNI 0239:
2014, Batik - Definition, and terms. Then in the next stage, there were revisions of several SNIs on the old batik to
be combined into a new SNI that had a scope of characteristics, quality requirements, and test methods. SNI 8302:
2016, Batik written - Fabric - Characteristics, quality requirements, and test methods, made as written batik
standards that contain characteristics, quality and test methods that are useful as a reference for evaluating the
quality of written batik products by test institutions, also become a reference for batik artisans and industries to
always improve the quality of batik products. However, various obstacles prevent SMEs from doing SNI
Certification. These constraints also occur at XYZ SME. XYZ SME is one of the SMEs that has an interest in
conducting SNI Certification but is constrained in not being able to fulfill the administrative requirements
documents and legal legality required to conduct SNI Certification [3]. To help SMEs with similar problems, it is
felt necessary to design tools in the form of checklists and workflows that will make it easier for SMEs to fulfill
their certification requirements and complete SNI certification documents. Checklist is used as a guide in carrying
out read-backs to solve problems. Read-back is a process of clarification and verification of professional actions that
have been programmed or done [4]. Workflow is a systematic work/business process whereby documents or
information created are flowed from one party to another for follow-up actions according to certain rules or
procedures that have been mutually agreed upon in an organization/company [5]. In general, workflows in electronic
document management applications are built to facilitate and speed up the arrival of documents to people who have
authorization authority so that they can immediately approve documents to be published [6]. The workflow will be
made in the form of a flow chart, which is useful to facilitate the streamlining of activities and documents in a
business process [7]. With the flow chart, the system is expected to be created according to the flow framework and
following existing business process conditions [8]. The making of this checklist and workflow refers to the
requirements and procedures of the BSN and the Certification Scheme established by the Product Certification
Agency (LSPro) which is authorized to certify Batik products, namely the Center for Crafts and Batik.

SIGNIFICANCE OF THE STUDY

This study will review and analyze previous studies that are also related to the development of SMEs in
Indonesia. The new thing that is trying to be presented in this research is the application and crosscheck directly on
SMEs to determine gaps and follow-up actions that need to be taken to carry out the certification process. At the
same time, this paper is expected to produce benefits in the form of designing tools and recommendations that can
facilitate SMEs to carry out certification which is expected to be a driving force for Indonesian SMEs to be more
competitive and ready to compete in the international market. Also, this research contributes to providing
recommendations and suggestions for the Regional Government and all authorized institutions in Indonesia
regarding the gaps and opportunities for applying SNI to Batik SMEs.

LITERATURE REVIEW
Standard is a technical requirement or something standardized, including procedures and methods that are
prepared based on the consensus of all parties/governments/ international decisions related to taking into account the
requirements of safety, security, health, environment, development of science and technology, experience, and
period development. present and future to obtain the maximum benefit [9].
Standardization is the process of formulating, establishing, implementing, maintaining, enforcing, and
supervising standards implemented in an orderly manner and collaboration with all Stakeholders [9].
Standardization is needed to equalize people's perception of actual batik and is a condition to improve the
competitiveness and quality of UKM production [2].
Indonesian National Standards, hereinafter abbreviated as SNI, are Standards established by BSN and apply in
the territory of the Unitary State of the Republic of Indonesia [9].

FIGURE 1. SNI Certification procedures [10]

 TABLE 1. Product conformity requirements [11]
Observation
No. Characteristic
Parameters
1 Smell The distinctive smell of the batik plasticine scent

2 Process and physical
characteristics
a. The motifs on the fabric can be repeated or not
b. Scratch marks from the plasticine are not always exactly the
same on every line of deaf klowong, repetition of motifs, and
motif connections
c. Color seepage is caused by the thinness of plasticine streaks,
irregularity of the plasticine soles and at the edges of the
plasticine soles
d. Plasticine tread on the canal is not always the same
e. The amount, size, distance and shape of the patterns in a field
of motif are not always the same
f. The results of the crushing process are always obtained
irregular fractions
g. Yields obtained by irregular fractions

TABLE 2. Documents requirements based on LSPro Scheme (certification body)

Level of
No. Item
Mandatory
1 Identity Card (KTP) Mandatory
2 Personal/Company Taxpayer Identification Number (NPWP) Mandatory
3 Land certificate Mandatory
4 Property Tax Payment Mandatory
5 Application Form Mandatory
6 Applicant's Registration Form Mandatory
7 Notarial Deed Mandatory
8 Deed of Endorsement Mandatory
9 Space utilization permit (KRK / IPR) Not Mandatory
10 Statement of Environmental Management and Monitoring Not Mandatory
11 Building Construction Permit (IMB) Not Mandatory
12 Trading Business License (SIUP) Mandatory
13 Company Registration Certificate (TDP) Mandatory
14 Industrial Business License (IUI) Mandatory
15 Disturbance Permit (HO) Not Mandatory
16 Registered Trademark Certificate Mandatory
17 Quality Policy Document Mandatory
18 Organizational Structure Document Mandatory
19 Production Process Flow Document Mandatory
20 Quality Target Document Mandatory
21 Quality Procedure Document Mandatory
22 Main and supporting raw material specification documents Mandatory
23 Document list of main and supporting production equipment Mandatory
24 Document of product quality inspection / testing activities Mandatory
 FIGURE 2. Framework for assessing SMEs Batik readiness on SNI Certification [12]

THE CONCEPTUAL FRAMEWORK

Figure 3 and figure 4 shows the framework of this study. Figure 3 will illustrate the mapping of constraints and
obstacles that exist in the SNI certification process, and classify them into 4 types of factors and their sub-factors
using the framework for assessing the readiness of SMEs readiness (national, industry, and organizational) and
environmental pressure from Alzougool and Kurnia [13], and the theory has been modified and adjusted for the
needs of SNI certification. Then through literature studies as well as observations and interviews directly to product
certification body formed by the government and XYZ SME. Figure 4 will illustrate with a framework that begin
with designing a checklist as a measure of the compliance level for the certification requirements. Checklists are
made by classifying requirements based on the previous research framework into 5 categories, namely personal,
company, managerial, technical, and economy. Furthermore, the framework will be known and separated which
requirements have been met and which requirements have not been met. Documents that have been fulfilled will be
compiled directly as one final collection of required documents. While for the required documents that have not
been fulfilled, the workflow is made, as a tool to facilitate the submission of administrative requirements documents
to the competent authority, as well as facilitate the preparation of technical requirements documents. Furthermore,
after all the required documents have been completed based on the workflow that has been created, the final set of
required documents is ready to be submitted to obtain an SNI certificate.
 (a) (b)

(c) (d)

FIGURE 3. (a) Organizational Readiness, (b) Industry Readiness, (c) National Readiness, (d) Environment Pressure [13]

FIGURE 4. SNI Certification Strategy Framework

 RESULT AND DISCUSSION

Organizatinal Readiness
Organizational readiness as cost/financial and technical resources [14]. Then can be classified as perceived of
SNI for batik, perceived organization resources, and perceived organization governance [13]. Through literature
studies as well as observations and interviews directly to product certification body formed by the government and
XYZ SME, this study tries to summarize the things that can become obstacles and obstacles of SNI certification
based on organizational readiness factor, that are (1) weak application of SNI in the industry is caused by SMEs not
yet knowing SNI [15], (2) low awareness of entrepreneurs [16], (3) certification process that is not easy and the
amount of the cost of testing or certification which is considered expensive [17], (4) lack of skilled human resource
[16], (5) and perceived to limit their creativity [18].

Industry Readiness
Industry readiness consist of technology intensiveness of the industry [14]. Then can be classified as perception
of the availability of industry standards that organize the work of the SMEs and perceived trading partners readiness
for implementation of SNI for Batik [13][14]. Through literature studies as well as observations and interviews
directly to product certification body formed by the government and XYZ SME, this study tries to summarize the
things that can become obstacles and obstacles of SNI certification based on industry readiness factor, that are (1)
lack of testing infrastructure [16], (2) caliber facilities for testing tools and production equipment [15], (3) increase
production costs that are still relatively expensive compared to product prices so that they are only technically
efficient but not economically efficient [17][18], (4) and quality requirements that are still difficult to fulfill [18].

National Readiness
National readiness consist of degree of support of the government, availability of and Support from technology
vendors, availability of EC-related technologies, national infrastructure [14]. Then can be classified as perceived
government supportfor using SNI for Batikand perceived supporting sevices for using SNI for batik [13]. Through
literature studies as well as observations and interviews directly to product certification body formed by the
government and XYZ SME, this study tries to summarize the things that can become obstacles and obstacles of SNI
certification based on national readiness factor, that are (1) conformity assessment institute/product certification
body (LSPro) limitation both in terms of the number, scope of testing and its distribution [15], (2) limited
competency level of human resources owned by LSPro [15], (3) and utilization of LSPro facilities has not been
optimized to apply SNI which is more focused on research, imports are increasingly flooding [15].

Environmental Pressure
Environmental pressure consist of external pressure e.g. industry, competition, government, buyers/consumer
readiness, institutional, suppliers [14]. Then can be classified as perceived internal pressure and perceived external
pressure [13]. Through literature studies as well as observations and interviews directly to product certification body
formed by the government and XYZ SME, this study tries to summarize the things that can become obstacles and
obstacles of SNI certification based on environmental pressure factor, that are (1) low public awareness and concern
for aspects of health, safety and the environment in a product that is still low [16], (2) limited number of SMEs
interested in implementing standards [17], (3) and many of SMEs believed in themselves that they would be
successful without any SNI adoption [13].
 Fulfillment Requirements Checklist Design
Table 3-5 shows the checklist design that used as a guide in carrying out read-backs to solve problems. The
making of this checklist refers to the requirements and procedures of the BSN and the Certification Scheme
established by the Product Certification Agency (LSPro) which is authorized to certify Batik products, namely the
Center for Crafts and Batik
TABLE 3. Fulfillment Requirements Checklist Design part. 1
Fulfillment No.
Criteria Item Question Form Scale
Method Question
Personal Identity Card Propose Does the applicant for certification as a A1 Yes/No
(KTP) company representative already have an ID
card as one of the requirements for SNI
certification documents?
Personal Personal Propose Does the applicant for certification as a A2 Yes/No
Taxpayer company representative have NPWP as one of
Identification the requirements for SNI certification
Number documents?
(NPWP)
Personal Land certificate Propose Does the applicant for certification as a A3 Yes/No
company representative have a company land
certificate as one of the requirements for SNI
certification documents?
Personal Property Tax Propose Does the applicant for certification as a A4 Yes/No
Payment company representative have a Property Tax
Repayment Letter as one of the requirements
for SNI certification documents?
Company Application Propose Has the company filled out the Application B1 Yes/No
Form Form as one of the requirements for SNI
certification documents?
Company Applicant's Propose Has the company filled out the Applicant's B2 Yes/No
Registration Registration List as one of the requirements for
Form SNI certification documents?
Company Notarial Deed Propose Does the company have a Notarial Deed as B3 Yes/No
one of the requirements for SNI certification
documents?
Company Corporate Propose Does the company have the Company's NPWP B4 Yes/No
Taxpayer as one of the SNI certification document
Identification requirements?
Number
(NPWP)
Company Deed of Propose Does the company have a Legalization Deed B5 Yes/No
Endorsement as one of the requirements for SNI certification
documents?
Managerial Space Propose Does the company have a Space Utilization C1 Yes/No
utilization Permit (KRK / IPR) as one of the requirements
permit (KRK / for SNI certification documents?
IPR)
 TABLE 4. Fulfillment Requirements Checklist Design part. 2

Fulfillment No.
Criteria Item Question Form Scale
Method Question
Managerial Statement of Propose Has the company made a Statement of C2 Yes/No
Environmental Management and Environmental Monitoring
Management as one of the requirements for SNI certification
and Monitoring documents?
Managerial Building Propose Does the company already have a Building C3 Yes/No
Construction Permit (IMB) as one of the SNI certification
Permit (IMB) documents?
Managerial Trading Propose Does the company have a Trading Business C4 Yes/No
Business License (SIUP) as one of the requirements for
License (SIUP) SNI certification documents?
Managerial Company Propose Does the company have Company Registration C5 Yes/No
Registration Certificate (TDP) as one of the SNI
Certificate certification documents?
(TDP)
Managerial Industrial Propose Does the company have an Industrial Business C6 Yes/No
Business License (IUI) as one of the requirements for
License (IUI) SNI certification documents?
Managerial Disturbance Propose Does the company have a Nuisance Permit C7 Yes/No
Permit (HO) (HO) as one of the SNI certification document
requirements?
Managerial Registered Propose Does the company have a Registered C8 Yes/No
Trademark Trademark Certificate as one of the SNI
Certificate certification document requirements?
Technical Quality Policy Create Does the company have a Quality Policy D1 Yes/No
Document Document as one of the SNI certification
documents?
Technical Organizational Create Does the company have an Organizational D2 Yes/No
Structure Structure Document as one of the requirements
Document for SNI certification documents?
Technical Production Create Does the company have Production Process D3 Yes/No
Process Flow Flow Document as one of the SNI certification
Document document requirements?
Technical Quality Target Create Does the company have a Quality Target D4 Yes/No
Document Document as one of the SNI certification
document requirements?
Technical Quality Create Does the company have a Quality Procedure D5 Yes/No
Procedure Document as one of the SNI certification
Document documents?
Technical Main and Create Does the company have the main and D6 Yes/No
supporting raw supporting raw material specification
material document as one of the requirements for SNI
specification certification documents?
documents
 TABLE 5. Fulfillment Requirements Checklist Design part. 3

Fulfillment No.
Criteria Item Question Form Scale
Method Question
Technical Document list Create Does the company have a document that lists D7 Yes/No
of main and the main and supporting production equipment
supporting as one of the requirements for SNI certification
production documents?
equipment
Technical Document of Create Does the company have a product quality D8 Yes/No
product quality inspection / testing Activity Document as one
inspection / of the requirements for SNI certification
testing documents?
activities
Economy Certification Paid for Is the company willing to pay the Certification E1 Yes/No
Application Fee Application Fee (IDR 500,000) as one of the
(IDR 500,000) requirements for SNI certification documents?
Economy Audit fee I Paid for Is the company willing to pay Audit Fee I E2 Yes/No
(IDR (IDR 1,000,000) as one of the requirements for
1,000,000) SNI certification documents?
Economy Audit Fee II Paid for Is the company willing to pay Audit Fee II E3 Yes/No
(IDR (Rp. 6,000,000) as one of the requirements for
6,000,000) SNI certification documents?
Economy Certification Paid for Is the company willing to pay the Certification E4 Yes/No
Services Fee Services Fee (as much as Rp. 4,100,000) as
(Rp. 4,100,000) one of the requirements for SNI certification
documents?

Workflow to Meet Requirements

The workflow for submitting and making certification requirements documents will be made for all documents
that not yet fulfilled by UKM. This research was given an example workflow to propose and submit an Industrial
Enterprise License (IUI), one of the SNI requirements documents.

FIGURE 5. Workflow for Submitting of Industrial Business License (IUI) part.1

 FIGURE 6. Workflow for Submitting of Industrial Business License (IUI) part.2

CONCLUSION
This study provides an overview of strategies for conducting SNI certification. To understand the obstacles and
obstacles that might interfere with certification and might be the cause of the low level of implementation of SNI
certification in Indonesia, this research begins by mapping problems, by collecting data on these constraints and
obstacles into the categories of factors and sub-factors. That's because we can see readiness from a comprehensive
perspective. SME readiness in applying SNI does not only depend on organizational factors. SMEs readiness in
adopting SNI also depends on several factors belonging to outside the organization. Furthermore, as a concrete step
to raise the level of implementation of SNI certification, this research tries to design tools such as checklists and
workflows, which are expected to help and facilitate the understanding of SMEs owners of SNI certification
procedures and processes, so that constraints and obstacles such as low awareness of entrepreneurs, and the thought
of quality requirements that are still difficult to fulfill and costs that are still relatively expensive compared to
product prices, so that they are only technically efficient but not economically efficient. Further research can also be
used as an evaluation material and reflection on government or private institutions relating to the field of product
certification or industrial development in Indonesia, to be able to find loopholes in solutions or appropriate actions
to raise entrepreneurs' awareness of the importance of product standards and certification, so that the Indonesian
economy more and more ready to face the international market competition.
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