Jakarta (ANTARA) - The Industry Ministry aims to disburse incentives for the restructuring of production machines and equipment for the food and beverage (FnB) industry to increase the sector's contribution to foreign exchange.

The ministry's Director General of Agro-Industry, Putu Juli Ardika, noted in his statement on Friday that his side had held coordination meetings with 100 industry players and associations in the food and beverage sector to succeed the program.

"This activity was carried out to obtain input from all stakeholders regarding the draft policy for the restructuring program for machinery and equipment in the food and beverage industry sector," he remarked.

Ardika noted that the machinery provision is the ministry's expansion effort. The program was earlier implemented in the wood and furniture processing industry and generated a positive impact in increasing competitiveness and sectoral income.

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Since 2022, some 24 wood and furniture processing companies participated in this machine and production equipment restructuring program. This figure comprises nine companies in 2022 and 15 companies in 2023, with a total budget of Rp10 billion (US$622 thousand), he added.

"Based on reports from companies receiving restructuring program funds in 2022, this program could increase company efficiency by 10-30 percent, product quality by 10-30 percent, and company productivity by 20-30 percent," he remarked.

Hence, based on this program's achievements in other sectors, the ministry plans to expand the scope of restructuring of production machinery and equipment to the food and beverage industry.

Earlier, the ministry stated that it had prepared a budget of Rp20 billion in 2024 to carry out a machine or equipment restructuring program in the food and beverage industry to increase its competitiveness, productivity, and energy efficiency.

Later, this benefit sharing mechanism will be provided with a reimbursement system or reimbursement of money by the government to industrial players in the food and beverage sector.

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Translator: Ahmad Muzdaffar F, Resinta Sulistiyandari
Editor: Yuni Arisandy Sinaga
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