The Ministry of Industry (Kemenperin) has committed to boosting productivity, efficiency, and competitiveness in the agro-industrial sector through the Fiscal Year 2026 Agro-Industry Machinery and Equipment Restructuring Program (21/09).

The Directorate of Forest and Plantation Products Industry (IHHP) under the Directorate General of Agro Industry socialized the program procedures to industrial participants in Bogor.

Minister of Industry Agus Gumiwang Kartasasmita stated that machinery restructuring serves as a primary strategic instrument to strengthen the national industrial foundation.

Ministry Outlines Registration Timeline and Digitalization via SIINas

Program registration operates digitally through the e-Services menu on the National Industrial Information System (SIINas).

Companies must ensure the readiness of corporate data, production reports, and INDI 4.0 assessments before submitting applications.

Priority industry registration takes place from September 21 to September 27, 2026, while general registration runs from September 28 to November 13, 2026.

Acting Director General of Agro Industry Putu Juli Ardika emphasized that technology modernization and product diversification are crucial for businesses to maintain operations amid market competition.

Acting Director of IHHP R.R. Citra Rapati added that the program aims to motivate companies to adopt modern technology to enhance production efficiency, capacity, and product quality.

“Through the Machinery and/or Equipment Restructuring Program, we want to spur the forest and plantation products industry to carry out technological renewals,” Citra explained.

“Thus, the production process becomes more efficient, capacity and productivity increase, and product quality improves to generate significantly higher added value,” Citra added.

Focus on Domestic Machinery Integration, TKDN, and Green Industry Principles

The program relies on domestic machinery industry capabilities to fulfill the operational demands of the agro sector.

Synergy between machinery users and local producers is considered vital to strengthen the national industrial ecosystem.

Regarding sustainability, equipment upgrades target improved energy and resource efficiency, environmental impact reduction, and circular economy principles.

In addition, domestic content policy (TKDN) reforms focus on simplifying calculations and increasing local product usage.

Financial Criteria and Verification Framework for Machinery Subsidies

Applicants must ensure document completeness and data validity across administrative checking, field verification, Technical Team evaluations, and disbursement stages.

The 2026 program establishes a minimum machinery purchase value of Rp300 million.

The ministry targets reimbursement funding of Rp3.2 billion allocated to a minimum of four industrial enterprises.

Individual participating companies can receive a maximum reimbursement value of Rp1 billion.

“Restructuring machinery and equipment becomes one of the main instruments to accelerate increases in industrial productivity, efficiency, capacity, and competitiveness,” Kartasasmita stated in Jakarta (21/09).

“Modernizing production equipment also needs to be directed toward strengthening the national industrial structure, increasing added value, and building an increasingly resilient ecosystem,” Kartasasmita noted.

PHOTO: MINISTRY OF INDUSTRY

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