The Ministry of Industry (Kemenperin) continues to strengthen the competitiveness and self-reliance of national industry so it can produce industrial machinery that is still imported. Based on national import data for January–July 2023, capital goods imports reached USD 22.45 billion, about 17.5% of total national imports, while raw material imports reached USD 93.97 billion, or 73.25% of total national imports.
Kemenperin's effort to increase national industrial self-reliance is through developing and improving mastery of industrial technology, including by establishing the Indonesia Manufacturing Center (IMC). “Kemenperin's establishment of the IMC was prompted by a challenge from President Joko Widodo that Indonesia must pay attention to machine making machine (3M), or producing its own machines. The IMC is expected to help improve industry's technological capabilities to support the import substitution program, and to help small and medium industries develop their products,” Minister of Industry Agus Gumiwang Kartasasmita said in his remarks at the Topping Off of the Indonesia Manufacturing Center construction in Purwakarta on Tuesday (19/9).
The IMC is also targeted to become a platform for effective Penta-Helix collaboration, involving all stakeholders with important roles in industrial technology development, such as universities, government and private research institutions, businesses, the public or communities, and the Government.
“The IMC is equipped with adequate facilities and infrastructure to support national industry through the services it will provide, such as technology development and transfer, industrial product development, downstreaming of R&D, development of industrial workforce talent, and facilitating cooperation networks among stakeholders,” the Minister explained.
Construction of the IMC building, which began in December 2022, has now reached the Topping Off stage, or installation of the final structural part. According to the timeline, construction progress is targeted to reach 66% by the end of 2023, with completion at 100% targeted for June 2024.
The Minister said IMC construction is in line with the Increased Use of Domestic Products (P3DN) program, with goods and services meeting a Domestic Component Level (TKDN) of 71.39% (as of 13 September 2023). This comprises goods/materials TKDN of up to 47.32% and services TKDN of 83.46%.
IMC construction also makes use of and empowers the local potential of Purwakarta by employing local residents and using materials produced in the Purwakarta area. This is an effort to empower domestic industry and create jobs that benefit the regional economy. The IMC is also expected to further strengthen the role of manufacturing in Purwakarta Regency and attract new investment that will create more jobs for the community.
Agus expressed his hope that the IMC can continue to develop dynamically, adaptively and innovatively into a collaborative institution providing one-stop solution services to address industrial sector challenges in technology mastery and innovation.
Acting Secretary General of the Ministry of Industry Putu Juli Ardika reported that IMC construction aims to meet several needs of the industrial sector, such as scaling production up to economies of scale, aligning policies to strengthen domestic industry with regulations in ministries/agencies and state- and region-owned enterprises, and technology, facility and financial assistance for product and process innovation.
It also aims to meet needs for communication, outreach and information to manage raw materials, components and production processes, as well as the need to drive ecosystem growth in each industrial sector.
He added that the IMC main building is also targeted to meet the Green Building rating standards required by the Ministry of Public Works and Housing. This complies with Green Building standards and with the principles of environmental conservation and sustainable development that are mainstreamed in various national development policies, including the Green Industry policy that Kemenperin focuses on. “The IMC building will also be adorned with local wisdom in the form of roster bricks, terracotta, paving blocks, grass blocks and kerbstones, all characteristic of and produced in Purwakarta,” Putu added.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia