The Government Prepares A Budget Of IDR 20 Trillion For Intensive Sector Investment Loans

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo: Doc. Antara)

JAKARTA - The government will prepare a budget of IDR 20 trillion for labor-intensive sector investment loans with a 5 percent interest subsidy.

Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that in order to maintain industrial competitiveness, the Government has also prepared a revitalization package for production machines.

Airlangga added an investment credit of IDR 20 trillion with a 5 percent interest subsidy for 8 years for labor-intensive sectors, such as textiles, shoes, food and beverages, as well as furniture.

"We hope that this labor-intensive sector can be handled properly. We hope that jobs can be created and we target that after the I-EU CEPA, it is hoped that this industry will revive," he said in his statement, quoted Thursday, March 20.

Meanwhile, the labor-intensive industrial sector is one of the sectors that has optimal employment and is considered capable of supporting the prevention of increasing the unemployment rate.

In addition, President Prabowo also instructed a massive deregulation to increase competitiveness, create jobs, and accelerate investment in the textile sector, textile products, shoes, and other labor-intensive sectors.

Airlangga explained that one of the main concerns of the Government is the textile sector and textile products which currently absorb nearly 4 million workers and record exports of more than 2 billion US dollars.

"The President's directive is related to the availability of raw materials related to illegal imports related to the supply chain to be simplified and simplified," he said.

Therefore, Airlangga said that the first directive was to look at the entire supply chain and harmonize the rates that had been applied.

"Secondly, we respond to the goods that are added, through anti-dumping actions. Now these are some steps that we will take, and plus of course these items are competitive goods," said Airlangga.

In addition, President Prabowo also encouraged labor-intensive programs to be included in the National Strategic Project (PSN) so that various eases of licensing and incentive facilities could be given immediately.

Airlangga also said that the Government would continue to regulate and debureaucratize, as well as facilitate licensing for development, including related to AMDAL and the Government would form a task force to accelerate.

The third, in the midst of uncertainty in geopolitical, of course, our market must be maintained. And if we look at the largest textile market, this textile product is at EU. The size of the market is almost 30 percent of global demand. America is around 15 percent and the rest of the world is the rest. So it is important that the I-EU CEPA can be completed immediately," he said.