The Ministry of Industry
partnered with the Indonesian young Entrepreneurs Association (HIPMI) in the
discussion of the implementation of machinery restructuring program. “That’s
one of the areas which could be worked together, because the machines
rejuvenated are capital goods which can be used by small and medium
industries,” said Industry Minister Saleh Husin after receiving the visit of
chairman of Central Boards (BPP) of HIPMI, Bahlil Lahdahlia and HIPMI officials
in Jakarta, on Monday (May 11).
Ministry the of Industry encouraged them to cultivate
local raw materials-based industries to speed up downstreamization. So it is
expected that business growth will be achieved accompanied by equitable
distribution of industry in the regions. “Based on my visits to different
regions, many potential local natural resources can be further processed, such
as cocoa for chocolate and seaweed industry which is an export commodity,” said
the Minister of Industry.
According to the Director General of Small and Medium
Industries of the Ministry of Industry, Euis Saedah, her party has scheduled a
discussion on machinery rejuvenation program. “Next week, we and our colleagues
of HIPMI will discuss about machinery restructuring assistance that we offer
them,” he said.
In the meeting, Chairman of BPP HIPMI, Bahlil Lahadalia,
relevealed that young entrepreneurs in the regions should get the chance and
opportunities in the development of investment in the regions. “More
importantly, there is also a willingness of institutions, such as investment
Coordinating Board, to involve national and local entrepreneurs to work
together,” said Bahlil. The role of the entrepreneurs to work together,”
business partner, aka sharing business ownership and operations as well as
being a supplier ownership and operations as well as being a supplier of
production activity.
In response, Euis said that local young entrepreneurs had
a chance to pursue medium industries that process agro products and component
industries. These two areas can become a partner for big industries. Industry
Minister Saleh Husin also committed to encourage large investors, both foreign
and domestic, that entered a region, to partner with young entrepreneurs, he is
optimistic that young entrepreneurs are capable to become the spearhead for the
strengthening and distribution of national industry.
Allocating IDR 100 Billion
for Industrial Machinery/Equipment Restructuring in 2015.
The Ministry of Industry continues to develop the
potential of the textile and textile product (TPT) industry, footwear, and
leather tanning industries nationwide. One of the strategic efforts that have
been made are implementing revitalization program and industrial growth through
machinery/equipment restructuring. So it is expected to achieve increase in
capacity, quality, efficiency, productivity, and competitiveness of the
priority industry. This was conveyed by Minister of Industry Saleh Husin at the
launching of Industrial Revitalization and Growth Program Through Restructuring
of Machinery/Equipment of Textile and Textile Product Industry and Footwear
Industry for Fiscal Year 2015 at the Ministry of Industry recently.
“Machinery/Equipment Restructuring Program has been
implemented by the Ministry of Industry since 2007 for TPT industry, and in
2009 for the footwear and tannery industries. This industry and footwear
industry, “said the Minister of Industry. In 2007 – 2014, budget that has been
absorbed through this program reached IDR 1.18 trillion and has stimulated
machinery/equipment investment activity carried out by the business community
at IDR 14.48 trillion with productivity increase from 6 to 10%, energy
efficiency from 5 to 9%, and absorption of 241,835 workers.
From the results of evaluation of TPT industry, footwear
and leather tanning industries, the Ministry of Industry has proposed a budget
for 2015 at IDR100 billion, with targets of achievement of value of investment
made by TPT industry, footwear, and leather tanning industries at IDR 1
trillion or USD 80 million; creation of employment opportunities for 10,000
people for TPT industry, footwear, and leather tanning industries; as well as
increased efficiency of energy use and production costs and producing higher
quality and competitive products.
Meanwhile, taking into account the input of the Supreme
Audit Agency (BPK) and the Development Finance Comptroller (BPKP), the Ministry
of Industry has perfected the technical guidelines of the program for fiscal
year 2015 as follows: prioritizing industry that never received funding
program, so that the available budget can be used widely and evenly by all TPT
and footwear industry; and to encourage the rejuvenation of machinery/equipment
for the industry whose percentage of more than 20-year-old machinery/equipment reached 70%, so that the 2015 budget year is
prioritized for industries who make investment in fabrics manufacturing
(weaving and knitting machine).
TPT industry, footwear, and leather tanning industry is
one of the strategic industry, given that its role in the contribution to
foreign exchange earnings from non oil & gas exports and labor absorption
reached 15.51% of the total manufacturing industry workforce as well as
contributing to the national GDP at 1.89%. The export value of TPT industry in
2014 reached USD 9.13 billion or is still surplus compared to imports worth USD
5.8 billion. While, the footwear, leather tanning industry and finished leather
goods industry also recorded a surplus with export value reaching USD 2.9
compared to imports valued at USD 0.9 billion. Besides its large contribution
to foreign exchange earnings from exports, the priority industries also provide
employment to 2.2 million people. (E)
Business New - May 15, 2015
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