I

ndonesia needs to strengthen its small and medium enterprises (UMKM) by implementing the Indonesian National Standard (SNI) for products before entering the 2015 ASEAN Economic Community (AEC), an official has said. 

The Indonesian Chambers of Commerce and Industry (Kadin) chairman Suryo Bambang Sulisto said that imposing the SNI would be expensive.

He said, however, that it was needed before the AEC began. 

"Technology is the key to carry out standardization of UMKM product quality. On the other hand, we know that technology is not cheap," he said in Jakarta on Thursday as quoted by Antara news agency. 

He said that the government had to encourage state-run research institutions and universities to support technological improvements in the UMKM sector.

If products are standardized, the ASEAN single market could provide huge opportunities for local UMKM products to compete on a global scale, he said.

"Large scale enterprises and state-owned firms can support the standardization process for UMKM products, a process they later can make part of corporate actions," he added.

He went on to say that UMKM that could produce a certain standard of product had a good chance to become a supplier of large industries.

The ASEAN Economic Community is set to begin at the end of 2015 when 10 nations across Southeast Asia will be integrated as an exclusive economic region to create greater market access.

ASEAN has a population of 612 million, 40.6 percent of which are Indonesians. (nfo)