Purbaya Promises Low-Cost Credit at 6% Interest for Indonesia's Textile Industry

Jakarta, CNBC Indonesia - The Finance Minister, Purbaya Yudhi Sadewa, has stated that the government supports structural reforms across various sectors. One of these is the revitalisation of the textile and footwear industry through the provision of affordable liquidity via LPEI or Eximbank to update machinery and boost global competitiveness. Purbaya noted the perception that the textile industry faces a sunset industry status, which makes it difficult for Indonesia’s textile sector to obtain financing or credit from banks, including for machinery renewal. “Because it’s considered a sunset industry, it’s very hard to get loans from banks,” said Purbaya in the Kebon Sirih area, Jakarta, quoted on Wednesday (13/5/2026). Therefore, he promises low-cost credit for the textile, footwear, and other export-oriented manufacturing industries for machinery renewal. This low-cost credit will be provided by the Indonesia Export Financing Agency (LPEI) or Indonesia Eximbank, and the sectors will be coordinated with the Ministry of Industry. “That’s why I mentioned LPEI earlier; we’ve already met with textile companies or associations, and we will implement it in not too long a time,” he explained. Low Interest Rate Regarding this credit, Purbaya promises a low interest rate of 6%. He even won’t hesitate to lower it if it’s still considered too high. “Those needing machinery renewal will be ensured access to lower interest rates or the LPEI rate of 6%, if I’m not mistaken. If needed, we’ll lower it,” said Purbaya. Purbaya admitted to having held meetings with textile industry players and textile product manufacturers for this low-cost credit facility. Thus, he is confident in offering this facility to LPEI so that machinery renewal can be carried out. According to Purbaya, one indicator for textile and footwear industries eligible for low-cost machinery renewal credit is those still having promising business prospects. If they’ve been under pressure for a long time, he certainly won’t provide the low-cost credit. “So we’ll ensure they get sufficient financing if they need it. But if the prospects are poor, we won’t give it,” he explained. This plan has been considered by Purbaya since the end of last year. In December 2025, Purbaya once stated that the government would increase credit allocation for the furniture to textile industry, from the original Rp200 billion to Rp2 trillion. This allocation is given to the textile and furniture sectors. This policy was decided in line with incentive proposals from businesspeople, namely the Indonesian Chamber of Commerce and Industry (Kadin). “It turns out that from LPEI it’s Rp200 billion. Now we’re preparing (credit) Rp2 trillion for textile or furniture companies,” Purbaya revealed in a press conference at the Ministry of Finance last year (23/12/2025). Unfortunately, Purbaya has not yet conveyed the requirements for textile, footwear, and furniture industries that can access the facility from LPEI.