Indonesian Government To Promote Garment Machinery Modernization

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

AndangFatatiNadya, director of the clothing industry bureau of the Ministry of industry and industry of Indonesia, said: "one of the biggest obstacles faced by 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.