Indonesia Promotes Machinery Upgrades in Agro Industry

RRI.CO.ID, Jakarta - The Ministry of Industry continues to strengthen productivity, efficiency, and competitiveness in the agro-industrial sector, particularly forestry and plantation-based industries, through the 2026 Machinery and/or Equipment Restructuring Program for the Agro Industry Sector. The program was recently introduced by the Directorate of Forestry and Plantation Products Industry (IHHP), under the Directorate General of Agro Industry, to industry players in Bogor.

The session covered the program’s procedures and mechanisms, registration through the National Industrial Information System (SIINas), the use of domestically manufactured production machinery and equipment, implementation of green industry principles, Domestic Component Level (TKDN) policies, and the verification process through to the disbursement of reimbursement assistance.

Minister of Industry, Agus Gumiwang Kartasasmita, emphasized that machinery and equipment restructuring is a strategic government instrument to strengthen the foundations of the national industry. The initiative is expected not only to increase production capacity but also to reinforce the industrial ecosystem from downstream to upstream.

“Machinery and equipment restructuring is one of the key instruments for accelerating improvements in industrial productivity, efficiency, capacity, and competitiveness. Modernizing production equipment should also be directed toward strengthening the national industrial structure, increasing added value, and building a more resilient ecosystem,” the Industry Minister said in a statement in Jakarta on September 21.

Responding to the minister’s direction, Acting Director General of Agro Industry, Putu Juli Ardika, highlighted the importance of technological modernization and product diversification, particularly in the forestry and plantation sectors. He said upgrading production facilities is essential for industry players to maintain business sustainability amid market competition.

In line with this, Acting Director of Forestry and Plantation Products Industry R.R. Citra Rapati said the program was designed to encourage industries to adopt modern technologies.

“Through the Machinery and/or Equipment Restructuring Program, we want to encourage forestry and plantation product industries to upgrade their technology. This will make production processes more efficient, increase capacity and productivity, and improve product quality, ultimately generating significantly greater added value,” Citra said.

Program registration is carried out digitally through the e-Services menu on SIINas. The Ministry of Industry emphasized the importance of companies having their data, production reports, and INDI 4.0 assessments ready before submitting applications. For the 2026 fiscal year, registration for priority industries will take place from September 21–27, while general registration will run from September 28 to November 13, 2026.