Indonesia Offers 35 Percent Subsidy for F&B Machinery Upgrades

RRI.CO.ID, Jakarta - The Ministry of Industry is providing up to 35 percent in funding to modernize food and beverage (F&B) industrial machinery. The program supports companies in upgrading production technology while improving resource efficiency.

Industry Minister Agus Gumiwang Kartasasmita said technological transformation is essential to strengthening the F&B industry. He noted that the transformation aims to boost productivity, efficiency, innovation, and competitiveness.

“Technological transformation is a vital component in ensuring the industry can boost productivity while using resources more efficiently and responsibly,” Minister Agus said in a statement in Jakarta on Wednesday, September 2, 2026.

The strengthening aligns with the F&B industry’s continued positive performance. In the first half of 2026, the sector recorded GDP growth of 6.77 percent and contributed 41.86 percent to the non‑oil and gas manufacturing industry.

The F&B industry also has extensive linkages across the value chain, involving farmers, livestock breeders, fishermen, raw material suppliers, logistics operators, small and medium‑sized enterprises, and consumers.

To enhance competitiveness, the Ministry is encouraging greater resource efficiency--including water and energy use--during production processes. The adoption of resource‑efficient technologies is expected to boost productivity and support sustainable production practices.

As part of industrial technology transformation, the Ministry is providing a Machinery/Equipment Restructuring Program for the agro‑industrial sector, including the F&B industry. The program subsidizes part of the cost of machinery and equipment to help companies modernize their production technology.

Subsidies are provided up to 35 percent for locally produced machinery with a minimum Local Content Level (TKDN) certification of 25 percent. The government provides a 25 percent subsidy for domestically produced machinery and a 15 percent subsidy for imported machinery.

The program has been open since late August, with quotas allocated based on the order of eligible applications submitted.

Acting Director General of the Agro‑Industry Sector, Putu Juli Ardika, said resource efficiency is a crucial part of sustainable industrial transformation. He noted that more efficient technology offers dual benefits for the industry.

“On one hand, it can boost productivity and the efficiency of production processes. On the other hand, it promotes more responsible use of resources,” Putu said.

In addition to modernizing machinery and equipment, the Ministry is strengthening the adoption of more efficient production practices by optimizing water and energy use. These efforts also include conserving resources and adopting more environmentally friendly technologies.

The government is also strengthening communication and coordination among central and regional governments and the business community. This step is intended to ensure that industrial policies align with regional development needs, environmental sustainability, and business certainty and competitiveness. (Gusti Panji)