The Ministry of Industry continues working to increase productivity, efficiency and product quality in the textile and textile products (TPT) industry, including by helping the industry use modern technology through a production machinery and equipment restructuring program.
“Last year, eight companies used this restructuring program. This year, we are rolling it out again so our TPT industry can become more productive and globally competitive,” said Acting Director General of Chemical, Pharmaceutical and Textile Industries (IKFT) Ignatius Warsito in Bandung on Thursday (7/4).
The Acting Director General of IKFT explained that, to make the IKFT production machinery and equipment restructuring program a success, his directorate is proactively holding outreach so it is well targeted. “In 2022, the machinery and equipment restructuring program is for the fabric finishing and fabric printing industries. We have introduced this program to 100 companies in person and more than 143 companies online,” he said.
The 2022 machinery and equipment restructuring program also encourages the application of technologies such as artificial intelligence, the internet of things, augmented reality/virtual reality, advanced robotics, 3D printing and/or machine-to-machine communication.
“The program provides a reimbursement of a price discount worth 10% of total investment in imported machinery and equipment, or 25% for domestically produced machinery and equipment,” he said. The 2022 budget allocation is IDR 8.5 billion, targeting at least 18 companies.
Warsito said the machinery and equipment restructuring program is a stimulus and concrete government action to boost TPT industry performance amid the Covid-19 pandemic and accelerate national economic recovery.
“The program is also part of implementing the Making Indonesia 4.0 roadmap by providing investment incentives to stimulate the use of more modern, efficient, energy-saving and environmentally friendly machinery and/or equipment,” he said.
The program is also an effort to realize Indonesia's commitment to greenhouse gas emission mitigation under the Paris Agreement and the 26th Conference of the Parties (COP26), as the machinery industry invests in or buys is more environmentally friendly, minimizes waste and saves energy.
“This program continues the restructuring program for the TPT, footwear and leather industries carried out in 2007–2015. It proved to have a good impact on these sectors' performance, such as IDR 13.82 trillion in additional machinery and equipment investment,” he said.
Other positive impacts include a 21.75% increase in TPT production capacity, a 21.22% increase in realized production, 11.86% energy efficiency, and 28,295 additional workers. “We therefore continue to develop the TPT industry, especially as it is one of the priority sectors in Making Indonesia 4.0,” he added.
Warsito added the machinery and equipment restructuring program is carried out accountably and transparently with the help of two independent bodies, including the Program Operational Management Body (LPOP), which receives registrations and verifies the legality of all company application documents.
Next is the Independent Assessment Body (LPI), which verifies machinery purchase documents and the physical machinery on site, the fairness of prices, and assesses the impact of the machinery/equipment investment. “The verification results are then assessed by a technical team involving all stakeholders at Kemenperin, other ministries and agencies, regional governments and associations before the amount of assistance is set,” he said.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia