The Ministry Of Industry Conducts A Machine Restructuring Program To Support The TPT Industry Can Increase Competitiveness

Illustration. (Photo: Doc. Antara)

The Ministry of Industry (Kemenperin) has again carried out a machine restructuring program to support the textile and textile processing industry (TPT) to increase competitiveness amid global uncertainty that has an impact on reducing exports of these sub-sectors.

The engine restructuring program is expected to stimulate the use of more modern, efficient, and environmentally friendly equipment so that it can increase competitiveness, in accordance with the Making Indonesia 4.0 roadmap.

"This program was re-implemented after previously being utilized by 23 companies in 2021 and 2022. This program has proven to increase productivity, efficiency, and product quality," said Plt. Director General of Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry Ignatius Warsito in his statement, quoted from Antara, Wednesday, March 29.

The performance of the TPT industry in 2022 still shows good results amid the pressures of the global crisis. The export value of the TPT industry reached 13.83 billion US dollars with a total employment absorption of 3.65 million people.

"From the GDP side, the TPT industry experienced a growth of 9.34 percent (yoy) and contributed 1.03 percent to the national GDP," he added.

The machine/equipment restructuring program that focuses on the fabric refinement and fabric printing industry targets the participation of 13 companies with a total budget in 2023 of IDR 4.7 billion.

With this budget, there will be a replacement (reimburse) price discount of 10 percent of the total engine/equipment investment derived from imports, or 25 percent for domestically produced machinery/equipment.

The company can apply from March 24, 2023 to June 30, 2023, in accordance with the Regulation of the Director General of Pharmaceutical and Textile Chemical Industries No. 11 of 2023 concerning Guidelines for the Implementation of the Machine and/or Equipment Restructuring Program in the Fabrics and Industry Improvement Industry for Fabric Printing for Fiscal Year 2023.

Applications are submitted through the SIINAs Account of each company. The application submission time can be extended or shortened if needed.

The machinery or equipment that can be included in the program must meet the purchase and installation period between June 1, 2022, to June 30, 2023 and have been installed in the location according to the industrial permit owned. This needs to be proven by the purchase documents and payment documents as well as the results of field visits.

Warsito added that several other policies have been implemented by the government in the form of fiscal and non-fiscal incentives to maintain the performance of the TPT industry, including the development of commodity balances and improvement of raw materials supply chains, industrial implementation 4.0, a certain Earth Gas Price (HGBT) policy, import control and the imposition of TPT industry remedies trade, Domestic Product Use Program (P3DN), and increased HR competence through link and match vocation programs.

"TPT industrial companies are expected to be able to optimally utilize this program in order to increase productivity, efficiency and product quality in the context of the company's progress and the textile industry in general," said Warsito.