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Govt allocates $20mn to revamp textile industry
01 Apr '11
2 min read
The Industry Ministry of the country, this year has sanctioned a sum of Rp 177 billion or US$20.36 million towards a program to revamp the footwear, textile and leather industries.
Panggah Susanto, Director General of the Industry Ministry's manufacturing industry division said that, the sum allocated would be doled out to 150 textile companies and 20 footwear manufacturers and leather tanners, to aid them to procure new equipments in place of old obsolete ones.
He said this during a recent meeting at the Ministry's office and added that, they are hopeful that the new advanced technology would better help the firms to boost their productivity and production efficiency, to get more competitive.
With improved production efficiency and higher production, the domestic firms may even be able to catch hold of a greater share of the world market, he added.
The per capita consumption of textile items rose from 3.9 kg per annum in 1999 to 4.5 kg per annum in 2005 and again to 5.3 kg in 2008, while it is estimated to grow to 6.5 kg, this year, he said.
Also the contribution of the Indonesian textile exports in the world trade is likely to increase from current 1.8 percent to 2.5 percent through 2014. The textile industry revival program was launched in 2007, while for the footwear and leather industries were initiated in 2009.
Eligible companies under the revival program would be provided a subsidy of 10 percent of the total purchase value of new machineries.
There are around four million spinning spindles, 34,000 knitting machines and around two lakh weaving machines in the country's textile industry which are in use for over 20 years, the Ministry statistics revealed.
The government distributed around Rp 144.37 billion under the same programme last year. The amount was distributed to 151 textile units in the country.
However, the allocation remained lower than the government's target of Rp 154.15 billion.
Panggah Susanto, Director General of the Industry Ministry's manufacturing industry division said that, the sum allocated would be doled out to 150 textile companies and 20 footwear manufacturers and leather tanners, to aid them to procure new equipments in place of old obsolete ones.
He said this during a recent meeting at the Ministry's office and added that, they are hopeful that the new advanced technology would better help the firms to boost their productivity and production efficiency, to get more competitive.
With improved production efficiency and higher production, the domestic firms may even be able to catch hold of a greater share of the world market, he added.
The per capita consumption of textile items rose from 3.9 kg per annum in 1999 to 4.5 kg per annum in 2005 and again to 5.3 kg in 2008, while it is estimated to grow to 6.5 kg, this year, he said.
Also the contribution of the Indonesian textile exports in the world trade is likely to increase from current 1.8 percent to 2.5 percent through 2014. The textile industry revival program was launched in 2007, while for the footwear and leather industries were initiated in 2009.
Eligible companies under the revival program would be provided a subsidy of 10 percent of the total purchase value of new machineries.
There are around four million spinning spindles, 34,000 knitting machines and around two lakh weaving machines in the country's textile industry which are in use for over 20 years, the Ministry statistics revealed.
The government distributed around Rp 144.37 billion under the same programme last year. The amount was distributed to 151 textile units in the country.
However, the allocation remained lower than the government's target of Rp 154.15 billion.
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Jason Kent
British Textile Machinery Association (BTMA)
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