The Ministry of Industry (Kemenperin) is launching a machinery and equipment renewal (restructuring) program for the processed wood and furniture industries to enhance competitiveness and efficiency, thereby advancing the national economy. "This program has three main objectives: strengthening the value chain in the processed wood and furniture industries through technology optimization, improving production efficiency in these sectors, and enhancing industry competitiveness by increasing productivity, production quality, and export value," said the Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, in Jakarta on Sunday. The program is based on Ministerial Regulation No. 42 of 2022 and Ministerial Regulation No. 31 of 2024, with implementation mechanisms including discounts or reimbursements for the purchase of machinery and equipment.
As of August 27, 2024, 13 applications were submitted through the national industrial information system (SIINas), and seven companies have been selected: PT Stella Mobili, PT Karya Mitra Seraya, PT Indah Desain Indonesia, PT Gracia Kreasi Rotan, PT Batara Mega Krida Kencana, PT Bahana Bhumipala Persada, and PT Bika Parama Cipta. Director of Forest and Plantation Product Industries, Setia Diarta, noted that since 2022, 24 wood processing and furniture companies have participated in the machinery and equipment restructuring program, with a total budget of IDR 10 billion. In the first phase of 2024, IDR 3.33 billion was distributed. Reports from recipient companies indicate that the program has increased company efficiency by 10-30%, product quality by 10-30%, and company productivity by 20-30%. "We hope that through this machinery and equipment restructuring program for the processed wood industry, we can promote the growth of the processed wood and furniture sectors with better and more efficient technology," he added.
