Government Prepares IDR 20 Trillion For Labor Intensive Investment Credit

Coordinating Minister for Economic Affairs Airlangga Hartarto. (doc. Coordinating Ministry for Economic Affairs)

Coordinating Minister for Economic Affairs Airlangga Hartarto said that in an effort to boost economic growth and increase national industrial competitiveness, the Government launched a new credit or financing scheme, namely Labor Intensive Investment Loans, achieving a distribution target of IDR 20 trillion by 2025.

"The government provides a sufficient interest/margin subsidy budget for the projected distribution of this labor-intensive investment credit scheme to reach the distribution target of IDR 20 trillion by 2025," he said in his statement, Wednesday, December 25.

Airlangga said this was concrete evidence of the Government's seriousness in encouraging growth and increasing the competitiveness of the national labor-intensive industry and creating new jobs.

According to Airlangga, this labor-intensive investment lredit scheme is specially designed to support engine revitalization and increase productivity in the labor-intensive industrial sector.

Through this scheme, Airlangga said industry players can access financing to modernize equipment and increase production efficiency.

Meanwhile, this credit scheme offers a number of attractive features, including loan ceilings above IDR 500 million to IDR 10 billion, lower interest/margin rates than commercial credit, and a flexible loan period of between 5-8 years.

"This credit scheme is intended for labor-intensive industrial sectors, such as finished clothing, textiles, furniture, skin, leather goods, footwear, children's toys, as well as food and drinks," he said.

Airlangga explained that to get this credit, prospective recipients must meet a number of requirements, including, having a productive and decent business, having a business experience of at least 2 years and having at least 50 workers which is expected to increase in line with the increase in production capacity due to engine revitalization. carried out.

"The launch of this credit scheme is one of the broader Government policy packages to save and strengthen industries in Indonesia," he said.

Airlangga said that the Government is committed to continuing to encourage industrial transformation through various instruments, such as fiscal incentives, ease of licensing, improving the quality of human resources, and strengthening research and innovation.

Therefore, Airlangga said that this effort is expected to increase the competitiveness of the national industry, create jobs, and encourage sustainable economic growth.