The Indonesian government has allocated a total of Rp177 billion (US$20.36 million) this year for a program to upgrade the country's textile, footwear and leather industries, according to The Jakarta Post.
The financial aid would be distributed to 150 textile firms and 20 footwear producers and leather tanners so that they could replace their aging equipment.
“We expect that with improved technology, the firms can be more productive and efficient in their production, and therefore they will be more competitive,” director general of the Industry Ministry's manufacturing industry division, Panggah Susanto, said during the program announcement on Tuesday at the ministry's office.
Under the revitalization program, qualified companies will receive aid worth 10% of the total purchases of new machines.
According to the ministry's data, there are around 4 million spinning machines, 200,000 weaving machines and 34,000 knitting machines that are more than 20 years old currently in use by thousands of textile companies nationwide.
Last year, under the same program, the government disbursed around Rp 144.37 billion to 151 textile firms, which was lower than the government's target of Rp 154.15 billion. It also channeled around Rp 18.30 billion to 24 footwear and leather firms, also less than the Rp 24.45 billion budgeted.
