Senin, 17 Juni 2024

Ministry of Industry Allocates Rp7.5 Billion to Aid Furniture Industry Machinery Restructuring

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The Ministry of Industry has earmarked a budget of Rp7.5 billion to support the restructuring of machinery within the furniture industry for the year 2024.

Putu Juli Ardika, the Director General of Agro Industry, elucidated that the Ministry is steadfast in its efforts to enhance productivity and competitiveness within the furniture sector.

One notable initiative by the Ministry involves continuing the program for restructuring machinery and/or equipment utilized in wood processing and furniture manufacturing.

Speaking on behalf of the Minister of Industry during the HIMKI National Coordination Meeting in Jakarta on Friday, February 16, 2024, Putu Juli Ardika stated, “We have been and are currently implementing a machinery and/or equipment restructuring program for wood processing industries, which includes partial reimbursement for purchases based on specific criteria.”

The export performance of the sector amounted to US$1.8 billion throughout 2023, while the Furniture Industry Confidence Index (IKI) reached a noteworthy value of 52.38 in January 2024, indicating an expansionary phase and reflecting the confidence of furniture business entities in their operational environment.

There is optimism that the domestic furniture industry will continue its upward trajectory, aiming to maximize the vast potential of the global furniture market, estimated at US$629 billion (as per Expert Market Research data) and projected to grow by 5% in 2024.

Since 2022, a total of 24 companies have participated in the machinery and/or equipment restructuring program for wood processing and furniture industries, with nine companies joining in the 2022 fiscal year and 15 companies in 2023.

For 2024, the allocated budget for this machinery/equipment restructuring program amounts to Rp7.5 billion, targeting the participation of 10 industrial companies.

Putu further disclosed that, according to the fiscal year 2022 company reports, the program has yielded tangible results, including a 10-30% enhancement in company efficiency, a similar increase in product quality, and a notable rise in company productivity by 20-30%.

In addition to the machinery and/or equipment restructuring program for wood processing industries, the Ministry of Industry is also formulating strategies to bolster market dominance and adapt to furniture industry trends.

These strategies encompass facilitating the availability of raw materials and skilled human resources, improving market conditions, enhancing productivity and product quality, and fostering a conducive business climate alongside increased investment.

Furthermore, the Ministry of Industry is actively engaged in a furniture design concept development program, involving collaborative workshops between furniture designers and industry stakeholders.

Putu highlighted that these workshops, ongoing since 2019 and extending into 2022, aim to produce furniture design concepts translated into tangible furniture prototypes.

In a bid to reinforce domestic market dominance, the government is vigorously promoting the utilization of products with Domestic Component Level (TKDN) certificates through the State Budget.

Putu outlined that the Ministry of Industry will host a Domestic Product Utilization business matching event in Bali in March, facilitating interactions between Domestic Product Users (PDN) agencies and local industry players, with hopes of fostering commitments towards PDN absorption. The furniture industry is encouraged to actively participate in this event.

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