West Java Accelerates Business Matchmaking and Local Substitution to Protect Manufacturing

Bandung (ANTARA) - The West Java Provincial Government has launched a tactical intervention strategy involving business matchmaking and local raw material substitution to protect the manufacturing industry from the burden of import costs due to the strengthening US dollar. This step was taken following indications that businesses are holding back on importing raw and auxiliary materials because of soaring prices as the dollar exchange rate rises significantly, which risks lowering production utilisation and potentially triggering a wave of layoffs. “We are carrying out substitution and matchmaking. For example, the textile industry usually needs cotton, and that is 100 percent imported. We do not produce cotton, but there is already synthetic technology for cotton, polyester and rayon, and we produce those in West Java,” said Head of the West Java Industry and Trade Office, Nining Yulistiani, in Bandung on Wednesday. Nining explained that the burden on industry is currently very heavy because the upstream structure of factories in the Pasundan region remains locked into foreign dependency, particularly for raw and supporting materials. Using data from the National Industrial Information System, the office categorises factories that supply local components to be directly connected with downstream industries producing final goods. In addition to the textile cluster, the substitution of auxiliary zinc materials and the shift from wheat to local non-wheat flour are being accelerated together with business associations. “We have actually been doing this matchmaking since last year, encouraging businesses and associations. Once businesses are compatible, we bring them together so that deals are made,” Nining said. This mitigation effort runs in parallel with compiling a proactive job market database, reskilling and upskilling training programmes with the Ministry of Manpower for workers potentially affected by corporate efficiency measures, and vocational certification for new graduates.