JAKARTA - Economist and Executive Director of the Center of Reform on Economics (Core) Mohammad Faisal said that there are a number of challenges that cause the quality of domestic products to not yet have international standards.
"So often, especially to achieve one of our export markets, it is hindered by a non-traffic measure (NTM) policy," Faisal told VOI, Thursday, January 4.
Faisal said NTM itself is a policy on certain standards that can be related to safety standards, standards on energy use efficiency or can also be related to environmental impacts.
"Well, such standards are applied in many countries, especially in developed countries, so, if small export-oriented businesses want to enter the country's market, they really need to meet those standards," he said.
He added that there are also other challenges that cause the quality of domestic product production to be unable to be competitive in the international market, namely the imposition of high tariffs.
"But, apart from that tariff, there are also non-rate barriers and one form is the standard determination of products that can enter one market in one country," said Faisal.
Furthermore, Faisal said, most domestic MSMEs are still unable to produce their own goods. So that they have not been able to compete in the international market.
"When it comes to international markets, there are actually more small or medium enterprises that have the potential to go internationally. Well, but if the average micro and ultra micro businesses, the scale is local," he said.
"And there are also more (MSMEs) not those who make goods, but those who sell them," he added.
So, said Faisal, a number of efforts are needed to improve the quality of the MSME products themselves so that in the future they can compete and penetrate the international market.
"The domestic (product) does need an increase in terms of standards, capacity building and certification according to international standards, yes," he added.
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Previously reported, Candidate for Vice President (Cawapres) Number 1 Muhaimin Iskandar or Cak Imin sentil Minister of Trade (Mendag) and Minister of Cooperatives and MSMEs (Menkop UKM) regarding the quality of domestic product production.
Imin assessed that there was no movement from the two ministers to improve the quality of Indonesia's products to an international scale.
"There is no one more well-structured movement from the minister of trade, the minister of SME cooperatives in one movement to improve quality to international standards," he said in a vice presidential debate quoted from the Indonesian KPU YouTube, Friday, December 22.
According to him, domestic products seem to walk and develop on their own.
In fact, said Imin, Indonesian products can enter the global trade market if the quality of production has good standards.
"To this day I am very concerned, none of us continues to massively upgrade quality and standards," he said.
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