The Indonesian Textile Association (API) responded to reports that the government will budget Rp 252 billion for the restructuring of textile industry machinery and textile products (TPT) next year. API Chairman Jemmy Kartiwa Sastraatmadja said that industry players have not yet heard of the news, which according to him is quite astonishing. Moreover, in 2023, the budget for machine restructuring will only reach IDR 4.7 billion, far from the IDR 252 billion figure. Thus according to him, the figure of Rp. 252 would certainly be very helpful for the textile industry which is currently experiencing a slump in both the domestic and global markets.

"I was actually shocked and just heard that today Rp. 252 billion is very large. If it is possible to really get Rp. 252 billion for the restructuring of the machine, I will be very happy," said Jemmy, quoted on Monday (26/6/2023).

Jemmy further explained that the figure of IDR 4.7 billion budgeted by the government for the restructuring of TPT machines this year is still far from the total funding requirement for rejuvenating machines in this sector. Especially in this sector, according to Jemmy, there are approximately 3,000 companies from upstream to downstream in Indonesia.

Even though this year, the machine restructuring is only for the fabric improvement and printing sectors.

"This year, it's only IDR 4.7 billion, which is very small, while the capital goods for the TPT industry are also very expensive, right? In the textile industry, there are around 3,000 companies, right from upstream to downstream in Indonesia," added Jemmy.

Even though the Rp252 billion figure budgeted by the Ministry of Industry (Kemenperin) is intended for rejuvenation of TPT industrial machines from upstream to downstream, not just targeting the upstream sector, Jemmy still said this would be very helpful. According to him, it would be very good if the policy makers also paid attention to the downstream sector, which is currently in the same slump as the upstream sector.

"If this is really realized, it will be very helpful for the TPT industry. We really hope that this will become a reality," concluded Jemmy.

The Ministry of Industry (Kemenperin) has budgeted funds of IDR 252 billion for the TPT industrial machine restructuring program in 2024. This machine rejuvenation assistance program has increased 5,261 percent from this year's machine restructuring budget of IDR 4.7 billion.

It even became the biggest since this program was held. The Director General of the Chemical, Pharmaceutical and Textile Industry (IKFT) of the Ministry of Industry Ignatius Warsito explained that next year this program is not only intended for the fabric perfecting and printing industry but will also involve the downstream textile industry.

"The industrial group was expanded not only to the fabric perfecting industry and fabric printing but also to the weaving, knitting and apparel industries," Warsito said, to Bisnis.com, Wednesday (14/6/2023).