Ministry Of Industry Godok Incentive Rules For Seaweed Processing Industry

The Ministry of Industry (Kemenperin) is preparing various incentives for the downstreaming of the domestic seaweed industry.

Director General of Agro Industry of the Ministry of Industry Putu Juli Ardika said that his party is preparing various incentives for the development of this industry, one of which is the engine restructuring program.

Putu said that the Ministry of Industry is currently working on a legal umbrella for the seaweed processing industry to be included in the Ministry of Industry's restructuring program.

"The engine restructuring program for the seaweed processing industry has now entered the harmonization of the Minister of Industry," Putu said when met at his office, Tuesday, June 25.

He said that later the Permenperin will regulate the engine replacement quota in this industry, including the scale of industry recipients of the restructuring program.

"Because there we will determine how big the replacement of machines is, which ones need to cover and which scales. Well, this has entered the last stage, but we have temporarily discussed regulations," he said.

It is known, the Ministry of Industry has prepared a budget of IDR 20 billion for the overall food and beverage industry (mamin) restructuring program this year.

Although it has not been explained how much portion will be allocated to the seaweed processing industry.

In addition to the restructuring program, said Putu, his party is preparing other non-fiscal incentives by encouraging potential regions to be formed into industrial areas.

The plan is that there will be a seaweed processing industry as one of the industries that supports the area.

"We also have a non-fiscal incentive task, namely facilitating areas that are currently not yet an area because this (industrial for seaweed processing) is unique," he said.

According to him, the establishment of an industrial area that will become a home for the seaweed processing industry and other industries is currently in the process of being discussed with the local government.

"This is a process for him to be able to build the area and we are discussing with the local government. So, for industries like this, it is given an convenience and can develop," he said.

Meanwhile, based on data from The Global Seawed in the New and Emerging Market Report in 2023, there is a large market share for seaweed derivative products, which is US$11.8 billion in 2030.