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December 26, 2024 | 02:51 pm
TEMPO.CO, Jakarta - The Indonesian government said it has prepared a Rp20 trillion credit facility for labor-intensive industries in 2025, including garments, textiles, footwear, furniture, food and beverages, and children’s toys.
The incentive is aimed to stimulate growth for labor-intensive industries and create new jobs, said the Coordinating Minister for Economic Affairs, Airlangga Hartarto. “The government offers a sufficient interest subsidy to reach the projected investment loan target of Rp20 trillion in 2025,” said Airlangga in an official statement quoted on Wednesday, December 25.
The Indonesian Fiber and Filament Yarn Producer Association (Apsyfi) criticized the government's incentives, claiming these schemes fail to address the main problems faced by the textile industry, including the flood of imported products.
“Giving incentives without solving the main problems is a moot point,” Apsyfi head Redma Gita Wirawasta told Tempo on Wednesday.
Redma sees the incentives as the government’s attempt to lure industry players to a false sense of safety. What they want, Redma said, is policy improvement.
Redma also underscored import relaxation, which greatly affects the domestic textile industry. Without policy improvements that addressed illegal imports, the Apsyfi head went on, mass layoffs and the closing of factories will persist next year.
Oyuk Ivani S contributed to the writing of this article.
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