Increase Competitiveness, Ministry Of Industry Prepares Restructuring Of Wood And Furniture Industry Machines

Wood industry (photo: intermediate)

JAKARTA - The Ministry of Industry (Kemenperin) has again prepared an engine and equipment renewal program for the processed wood and furniture industry. This is to increase the competitiveness and efficiency of the sector for the advancement of the national economy.

"This program has three main objectives, namely strengthening value chains in the processed wood and furniture industry through optimizing technology, increasing production efficiency in the processed wood and furniture sector and increasing industrial competitiveness through increasing productivity, production quality and export value," said Director General of Agro Industry of the Ministry of Industry Putu Juli Ardika in a written statement, quoted Monday, September 2.

Putu said that the implementation of this program was based on the Minister of Industry Regulation (Permenperin) Number 42 of 2022 and the Minister of Industry Regulation Number 31 of 2024 with an implementation mechanism through price discounts or reimbursements for the purchase of machinery and equipment used.

The Ministry of Industry noted that as of August 27, 2024, there were 13 applications that entered through the national industrial information system (SIINAs) which had been curated into seven recipient companies, namely PT Stella Mobile, PT Karya Mitra Amara, PT Indah Design Indonesia, PT Gracia Kreasi Rattan, PT Batara Mega Krida Kencana, PT Bahana Bhumipala Persada and PT Bika Parama Cipta.

Meanwhile, Director of Forest Products and Plantation Industry Setia Diarta said, since 2022, as many as 24 wood and furniture processing companies have participated in this production machine and equipment restructuring program, with a total budget of IDR 10 billion and in the first phase of this year his party has distributed a budget of IDR 3.33 billion.

Based on the report of recipients of the fund company, this program has an impact on increasing company efficiency by 10-30 percent, product quality by 10-30 percent and company productivity by 20-30 percent.

"We hope that through this machine restructuring program and wood processing industry equipment, we can encourage the growth of the processed wood and furniture industry sector with better and more efficient technology support," he said.