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Facing the Global Crisis, the Ministry of Industry Encourages the TPT Industry Through the Machine Restructuring Program

BULETIN TEKSTIL.COM/ Jakarta – The Ministry of Industry continues to encourage the performance of the Textile and Textile Processing (TPT) industry in facing global uncertainty which has an impact on decreasing exports of this sub-sector. According to the Making Indonesia 4.0 plan, one of the initiatives taken is through a machine restructuring program to encourage the adoption of more modern, efficient, and environmentally friendly equipment in order to boost competitiveness.

This program is being implemented again after previously being utilized by 23 companies in 2021 and 2022. This program has been proven to increase productivity, efficiency and product quality,” said Plt. Director General of the Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry Ignatius Warsito at the Launching Event and Socialization of Machinery/Equipment Restructuring in the Fabric Perfecting Industry and Fabric Printing Industry for the 2023 Fiscal Year in Bandung.

The TPT industry’s performance in 2022 still showed good results amidst the pressures of the global crisis. The export value of the TPT industry reached USD 13.83 billion with a total employment of 3.65 million people. “In terms of GDP, the TPT industry experienced growth of 9.34% (YoY) and contributed 1.03% to national GDP,” he added.

The machine/equipment restructuring initiative, which focuses on the fabric perfecting and fabric printing industries, aims to involve 13 companies and has a total budget of IDR 4.7 billion in 2023. With this budget, a 10% discount on the total investment in imported machinery/equipment will be made, or a 25% discount on domestically produced machines/equipment.

Companies can submit applications from March 24, 2023 to June 30, 2023 in accordance with the Regulation of the Director General of the Pharmaceutical Chemical Industry and Textiles No. 11 of 2023 concerning Guidelines for Implementing the Machinery and/or Equipment Restructuring Program in the Fabric Finishing Industry and Fabric Printing Industry for the 2023 Fiscal Year. Applications are submitted through the SIINas Account of each company. The application submission time can be extended or shortened if necessary. Machinery or equipment eligible for inclusion in the program must be purchased and installed between 1 June 2022 and 30 June 2023, and must be installed in accordance with the industrial permit they possess. This must be demonstrated by purchasing and payment documents, as well as the results from visits.

Warsito added that the government had introduced various other initiatives in the form of fiscal and non-fiscal incentives to maintain the TPT industry’s performance, including developing commodity balances and improving the supply chain of raw materials, implementing industry 4.0, the Specific Natural Gas Price (HGBT) policy, controlling imports and imposing trade remedies for the TPT industry, the Program for Using Domestic Products (P3DN), and increasing the competence of human resources through the link and match vocational program.

It is expected that textile industry companies will maximize their use of this program in order to increase productivity, efficiency, and product quality in the context of company and textile industry progress in general,” Warsito said.

(Red B-Teks/Ly)

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