Indonesia Invested $20 Million To Resume Footwear And Leather Industry

The Ministry of industry of Indonesia allocated 177 billion rupees (US $20 million 360 thousand) to a plan this year to restore the country's textile, footwear and leather industries.

Su Shanduo, director of the Ministry of industry and Industry Bureau, said the financial aid will be allocated to 150 textile companies and 20. Shoe shoe Production units and nitriding leather units so that they can update their old equipment.

"We hope this can be improved," Su Shanduo announced in the office of the Ministry of industry. technology These companies will be more competitive in terms of productivity and efficiency.

He said that with better production and production growth, local companies may be around the world. market Win a bigger share.

The data of Su Shan's citation indicate that the output of domestic textile products has risen sharply in recent years. The annual consumption of textiles per person increased from 3.9 kg in 1999 to 4.5 kg in 2005 and 5.3 kg in 2008. This year's consumption is estimated at 6.5 kilograms. For example, Indonesia's share in the global textile export market is expected to rise from 1.8% this year to 2.5% in 2014. The recovery plan for the textile industry was established in 2007, and a similar plan for footwear and leather industry was established in 2009.

According to the recovery plan, eligible companies will receive 10% of the total purchase value of new models.

According to the Ministry of industry, there are about 4 million spinning machines, 200 thousand looms and 34000 knitting machines throughout the country with a history of more than 20 years.

Last year, according to the same plan, the government allocated about 144 billion 370 million rupees to 151 textile companies, which was lower than the government's target of 154 billion 150 million US dollars, and allocated 18 billion 300 million rupees to 24 shoe and leather companies, which was lower than the budget 24 billion 450 million rupees.

The loan allocation rate lower than expected is partly due to the fact that many qualified companies are not ready to join the program, the Minister of textile industry said when he released the plan.

Sutela Chet, President of the Indonesia Textile Association, said that last year, many textile companies were not qualified to use this incentive because of the delay in procurement. However, in addition to such obstacles, the machinery innovation program benefits the local textile industry.

10% of the stimulus money means that textile companies need to pay more capital to purchase machinery, and bank loans can only meet 30% of the total procurement cost.

At present, Indonesia imports textile machinery from China and Japan's nuclear European countries, including Germany, Belgium and Spain.