Coordinating Minister for Economic Affairs Airlangga Hartarto said the government would provide a 5 percent interest subsidy for labor-intensive sector industries.
The subsidy is expected to boost economic growth and increase the competitiveness of the national industry.
"The government also provides investment credit MSMEs for labor-intensive, where the Minister of Finance has agreed whatever the bank provides investment credit for MSMEs, the labor-intensive sector, namely textiles or garment, footwear, drinking, furniture, and other sectors with a certain number of workers," he explained at the BRI Microfinance Outlook 2025 event, Thursday, January 30.
In addition, Airlangga emphasized that banks that will disburse loans to the labor-intensive sector will be subsidized by the government at 5 percent.
Airlangga hopes that this facility can help MSMEs in the labor-intensive sector to increase their production so that they can export optimally.
Previously, Airlangga conveyed that the projected distribution of this labor-intensive investment credit scheme was estimated at IDR 20 trillion by 2025.
This credit scheme is specifically designed to support engine revitalization and increased productivity in the labor-intensive industrial sector. Through this scheme, industry players can obtain financing to modernize equipment and increase production efficiency.
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The credit scheme offers several features including loan ceilings from IDR 500 million to IDR 10 billion, lower interest rates or margins compared to commercial credit, as well as a flexible loan period of between 5 and 8 years.
To access this credit, prospective recipients must meet several requirements, including having a productive and decent business, having at least 2 years of experience in business, and employing at least 50 workers.
It is hoped that this number of workers will increase along with the increase in production capacity due to engine revitalization.
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