Ministry Of Industry: Wood Management Industry In Indonesia 97 Percent Still Use Imported Machines

Director of Forest Products and Plantation Industry of the Ministry of Industry (Kemenperin) Setia Diarta. (Photo: Doc. Antara)

JAKARTA - Director of Forest Products and Plantation Industry of the Ministry of Industry (Kemenperin) Setia Diarta revealed, until now the wood management machinery industry in Indonesia has used imported machinery.

"If we may convey it from the evaluation year until 2023, if possible, we will convey that 95-97 percent is still filled with machinery from imports," said Tata as he is familiarly called, quoted from Antara, Wednesday, September 26.

The dominance of the use of wood processing machines that are still imported is expected to open up domestic opportunities through joint venture cooperation, so as to increase the competitiveness of the domestically made machine industry and the opening of new jobs.

He also hopes that through collaboration between Indonesia and China, which is the largest producer of the engine industry, it can continue to be established so that it can provide knowledge transfers and Indonesia can become one of the goals of investment investors.

Tata said that the engine and production equipment restructuring program in 2024 allocated for the engine and furniture processing industry restructuring program received an allocation of IDR 7.5 billion with a target of 10 company participants.

The program is planned to be pushed forward to the next government or Elected President and Vice President Prabowo Subiyanto-Gibran Rakabuming Raka.

"We can encourage this to be faster with help or with absorption using the TKDN program," he said.

It is known, the Ministry of Industry is rolling out a restructuring program for machinery and production equipment in 2024 that can be utilized by the industrial sector, including in the agro industry sector.

This step is to encourage the use of the latest technology provided by domestic producers to spur industrial downstream and increase industrial competitiveness.

"In the agro industry sector, we have implemented a machine and equipment restructuring program for the wood and furniture processing industry. This is based on the Regulation of the Minister of Industry Number 42 of 2022 concerning the Engineering and/or Kayu Processing Industry Restructuring Program," said the Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika.

The purpose of the program, among others, is to strengthen the value chain of the processed wood and furniture industry through optimizing technological aspects.

In addition, it can boost the competitiveness and efficiency of the production of the processed wood and furniture industry. In fact, increasing product capacity and quality will have an impact on increasing export value," he said.