Quantifying the economic benefit of standard on auto-electric stove for Batik small medium enterprises in Indonesia

Abstract

One of the important issues in standard implementation is its economic impact. This is because the economic benefits of the standard implementation are intangible and difficult to be measured. Therefore, this research aims to analyze the economic benefit of standard implementation in Indonesian auto – electric stove for batik SME by using the economic benefit of standard (EBS) approach developed by ISO. The data collection and the empiric case study analysis was performed through in-dept interview with the key informants are the owner of the SME, the SME's supervisors and experts in the field of standard implementation. This study uses a value chain approach to measure the economic impact of the implementation of SNI IEC 60335 and the SNI ISO 9001 standard. The research result showed that the standard implementation provided economic benefits of 5.432,5 USD per year. Furthermore, the economic benefits were obtained by the cost efficiency of the business function or the increased revenue from the production.