Indonesia'S 9 Billion Rupees Support Modernization Of Garment Machinery

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

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.