West Java Accelerates Business Matchmaking and Local Substitution to Protect Manufacturing

Bandung (ANTARA) - The West Java Provincial Government has launched a tactical intervention strategy consisting of a business matchmaking programme and the substitution of local raw materials to save the manufacturing industry from the import cost trap caused by the strengthening US dollar.

This step was taken following indications that business actors are holding back the import of raw and auxiliary materials due to high prices resulting from the significant increase in the US dollar exchange rate. This trend risks reducing production utility and potentially triggering a wave of layoffs.

“We are implementing substitution and matchmaking. For example, the textile industry usually requires cotton, which is 100 per cent imported. Since we do not produce cotton, we are looking at synthetic technologies. Synthetic alternatives for cotton, such as polyester and rayon, are produced here in West Java,” said the Head of the West Java Industry and Trade Office, Nining Yulistiani, in Bandung on Wednesday.

Nining explained that the current burden on the industry is very heavy because the upstream factory structure in the Sundanese region remains locked in foreign dependency, particularly regarding raw and supporting materials.

Using data from the National Industrial Information System (SIINas), the West Java Industry and Trade Office is categorising factories that provide local components to directly connect them with downstream industries that produce finished products.

In addition to the textile cluster, the substitution of zinc auxiliary materials and the diversion from wheat to local non-wheat flour are being accelerated alongside business associations.

“We have actually been conducting matchmaking since last year, encouraging business actors and associations. Once the businesses find a match, we bring them together so that a deal can be reached,” Nining said.

This mitigation step is running alongside the compilation of proactive job exchanges and reskilling and upskilling training programmes, in collaboration with the Ministry of Manpower, for workers who may be affected by corporate efficiency, as well as vocational certification for recent graduates.