Incentive and Financing Opportunities Opened for the Metal and Electronics Industries

The Ministry of Industry (Kemenperin) has identified various obstacles that continue to plague the metal, machinery, transportation equipment, and electronics (ILMATE) sectors. Director-General of ILMATE Setia Diarta revealed that the issues include limited raw materials, intense market competition, high energy and logistics costs, as well as human resource challenges and regulatory and incentive-related issues.

“We face limitations in accessing certain fiscal facilities and investment financing for modernization,” said Setia.

In response to these various challenges, the Ministry of Industry is preparing to strengthen incentives for the ILMATE industry while also opening up more diverse financing opportunities. One example is providing incentives for the sale of domestically produced trucks with a high Domestic Component Level (TKDN), enabling them to compete with imported products offered at lower prices.

In addition, the government is also promoting policies that expand access to fiscal facilities and investment financing to support the modernization of industrial machinery. Weak implementation of regulations, particularly in the metal industry, is also on the agenda for improvement.