House commission approves additional budget for industry 4.0

House commission approves additional budget for industry 4.0

Minister of Industry Airlangga Hartarto gave exposure at a working meeting with Commission VI of the House of Representatives in Jakarta. (ANTARA News/ Biro Humas Kementerian Perindustrian)

Jakarta (ANTARA News) - The Commission VI of the House of Representatives has approved proposal for additional budget of Rp2.57 trillion for the Industry Ministry to carry on with the national agenda of the fourth industrial revolution.

The strategic program to be carried out by the Industry Ministry under the agenda in the road map Making Indonesia 4.0. include development of five sectors of manufacturing industry, which is the pioneer in the implementation of the fourth industrial revolution in the country.

The five sectors are food and beverage processing industry, textile and textile product industry, automotive industry, electronic industry and chemical industry.

"In addition, we will seek to promote the quality and competitiveness of human resources through vocational education program," Industry Minister Airlangga Hartarto said here on Thursday.

The Commission VI gave the approval for the additional budget proposed by the Industry Ministry in a working meeting headed by Deputy Chairman of the Commission VI Dito Ganinduto on 9 July, 2018.

On the same occasion , the Commission VI accepted indicative ceiling for the budget of the Industry Ministry at Rp2.73 trillion in 2019 bringing the total budget of the Ministry to Rp5.31 trillion next year.

Airlangga said the Rp2.73 trillion fund would be used to finance nine strategic programs - 1) industrial human resources development; 2) development of agro-based industry, including to facilitate adoption of Good Production Method of Processed Foods for 100 food and beverage industrial companies; 3) expansion of chemical, textile and multifarious industries in which improvement will be made in the flows of materials in the textile industry, expansion of pilot projects for recycling of plastic garbage and to boost the competitiveness of industry producing pharmaceutical basic materials; 4) metal, machine, transport equipment and electronics (ILMATE) industries such as improvement of channel for flow of materials for automotive industry, expansion of potential and increase in production of basic materials in the ILMATE sector, and the drafting of Indonesian National Standard Plan (RSNI) for ILMATE products; 5) growth and and development of small and medium industries (IKM) that include expansion of 600 IKM products through improvement of quality and designs of products , basic materials and production facilities; 6) facility to increase the competitiveness of 87 IKM centers through training in management and production techniques and assistance in machine and equipment.

"We also will continue to implement development of IKM e-smart , facilitate the growth of 1,775 industrial entrepreneurs through training and production techniques , and assistance in startup capital," Airlangga said.

The next strategic program is control and improvement of accountability of the apparatuses of the Industry Ministry, development of technology and industrial policy, acceleration of fair distribution of industrial development and increase in resilience and expansion of international industrial access.

Deputy Chairman of Commission VI Dito Ganinduto said the additional budget for the Industry Ministry must be followed with improve performance.

"It was said at the meeting that all working partners that asked for additional budget such as the Industry Ministry, the Trade Ministry and the Capital Investment Coordinating Board (BKPM) do need additional budget to improve their performance," the lawmaker of the Golkar party said.

He said the Commission VI was already given details and understand the indicative ceiling of each of the ministries and agencies.

"Another program is improvement of allocations of budget by functions. We will present the program, and priority of the Ministry budget in 2019 to the Budget Department to be synchronized as a material in preparing the drafting law on the state budget for 2019," he added.

Reporting by Sella Panduarsa Gareta