ABSTRACT
This study aims to examine the effect of the machinery restructuring program on the technology use using electricity consumption as the proxy, efficiency, productivity, and competitiveness using export as the proxy. This study also measured the competitiveness of textile industry by using Net Export Index (NEI). The sample data used were 50 observations made up of the five textile industry sub-sectors and textile industry export import data for 10 years (2002–2011). By using panel data estimation, it was found that the machinery restructuring program in Indonesia’s textile industry positively and significantly affected efficiency and productivity and also reduced electricity consumption. However, this program was not proven to improve competitiveness. The calculation of NEI also found that the competitiveness of Indonesia’s textile industry after the machinery restructuring program decreased.
