"Domestic industry players still tend to rely on imports (of capital goods). Indonesia should start building its capability in manufacturing machines," he added at the 'Topping-Off Ceremony' of the Indonesia Manufacturing Center (IMC) in Purwakarta, West Java province.
According to data, during the January–July period this year, the value of Indonesia's capital goods imports reached US$22.45 billion, accounting for 17.5 percent of the total value of national imports.
Meanwhile, the value of its raw material imports was recorded at US$93.97 billion, or 73.25 percent of national imports, during the same period.
"I have visited factories and facilities to check their products. When asked about the TKDN (domestic content level), they said 50 percent. However, none of them used domestically manufactured machines. All machines were imported," he pointed out.
The minister expressed the hope that the IMC will help the government implement the import substitution program by improving the technological mastery of industry players, including small and medium industries.
Penta Helix collaboration between related actors and institutions, including the government, universities, public and private research institutions, entrepreneurs, and communities, is required to lead Indonesia toward more competitive technological mastery, he said.
Minister Kartasasmita then emphasized the importance of institutionalizing the IMC and equipping it with proper facilities and infrastructure.
The IMC, which has been under construction since December 2022, will offer several services related to industrial product development and capacity-building activities for industrial workers, among other things.
Furthermore, the IMC is also expected to help stakeholders establish a cooperation network.
According to Minister Kartasasmita, the government is developing the IMC to implement the Intensification of Domestic Product Utilization (P3DN) program.
"We are targeting to reach TKDN of 71.39 percent for goods and services to achieve the goal of P3DN," he said.
To construct the manufacturing center, the government is empowering the local workforce and utilizing materials produced in Purwakarta.
At the ceremony, the minister lauded the constructors for developing the IMC by complying with the Green Building standards set by the Ministry of Public Works and Public Housing.