Indonesia Government Supports Modernization Of Textile And Garment Machinery

The government of Indonesia allocated 9 billion rupees (US $990 thousand) in 2010 budget to support the aging of small and medium enterprises. Spin and clothing The modernization of machinery, a senior official said.

Indonesia Ministry of industry AndangFatatiNadya, director of the clothing industry bureau of the small and medium industrial division, said: "one of the biggest obstacles facing the small and medium-sized textile and leather manufacturing units is their lack of competitiveness because of their mechanical aging. Mechanical Aging leads to low efficiency and low productivity, and low quality of products. "

Andang said textile and leather enterprises are facing difficulties in finding new opportunities to invest in new machinery and access to financial institutions. According to the 6 year structural adjustment plan implemented in 2009, the textile and leather industry is expected to modernize the machinery of 80-100 factories annually, and to modernize 50% of the factory machinery by 2014.

According to the structural adjustment plan, the government of Indonesia will provide 25% of the funds for imported machinery to provide 30% of the funds for the purchase of new local machinery, each of which has a price range of 4000-20 billion rupees.