Ministry of Industry Rolls Out 2024 Production Machinery and Equipment Restructuring Program to Boost Agro-Industry

Jakarta, INTI - The Ministry of Industry has initiated the 2024 restructuring program for production machinery and equipment, benefiting various industrial sectors, including the agro-industry. This move aims to promote the utilization of cutting-edge technology provided by domestic manufacturers, thereby driving industrial downstreaming and enhancing the competitiveness of the industry.

"In the agro-industry sector, we have implemented a program to restructure machinery and equipment for wood processing and furniture industries. This is based on Minister of Industry Regulation No. 42 of 2022 concerning the Restructuring Program for Machinery and/or Equipment for Wood Processing Industries," stated the Director-General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, in Jakarta on Friday (10/5).

The Director-General of Agro Industry explained that the objectives of the program include strengthening the value chain of processed wood and furniture industries through the optimization of technological aspects. "Furthermore, it can boost the competitiveness and production efficiency of processed wood and furniture industries. With the increased capacity and quality of products, there will be an impact on the enhancement of export value," he added.

Since 2022, a total of 24 wood processing and furniture companies have participated in this production machinery and equipment restructuring program. This comprised nine companies in 2022 and 15 companies in 2023, with a total budget reaching Rp10 billion. In 2024, the allocated budget for the restructuring program for machinery and equipment in the wood processing and furniture industry is Rp7.5 billion, targeting 10 participant companies.

"Based on reports from recipient companies of the restructuring program funds in 2022, this program has resulted in efficiency improvements for companies by 10-30%, product quality by 10-30%, and company productivity by 20-30%," Putu mentioned.

With these positive impacts, the production machinery and equipment restructuring program will be expanded to the food and beverage (F&B) industry sector. Moreover, the F&B industry is one of the sectors that significantly contributes to the national economy and is a priority sector according to the roadmap of Making Indonesia 4.0.

"Therefore, some time ago, we held a Policy Coordination Meeting on Machinery or Equipment Restructuring in the Food and Beverage Industry Sector. This activity was carried out to gather input from all stakeholders on the draft policy of the restructuring program for machinery and equipment in the food and beverage industry sector," explained Putu.

The event held in Surabaya was attended by more than 100 participants, including industry players in the agro-sector, machinery industry players, and representatives from the East Java Provincial Industry and Trade Office. Associations from related industries such as GAPMMI, HIMKI, ASTRULI, ACBBI, MASSI, ALSINTANI, and GAMMA also attended to review the benefits of this restructuring policy for the domestic processing industry.

As part of the agenda in Surabaya, Putu also conducted a working visit to production machinery manufacturers PT Meco Inoxprima in Sidoarjo and PT Metro Mesin in Malang. The purpose of visiting these two companies was to assess the readiness of equipment and machinery industries in supporting the restructuring program for production machinery and equipment in the agro-industry sector.

"We hope that the Domestic Component Level (TKDN) requirements in this machinery and equipment restructuring program will be an opportunity for the national machinery industry sector to contribute to improving the competitiveness of national manufacturing products, especially in the agro-industry," concluded Putu.