Textile Entrepreneurs Struggle to Secure Bank Loans, Purbaya Offers This Solution

Jakarta, CNBC Indonesia - The textile industry and textile products, including shoes or footwear, have recently been considered a sunset industry in Indonesia, eroded by the influx of cheap imported goods.

Finance Minister Purbaya Yudhi Sadewa believes that this perception is why the Indonesian textile industry often struggles to obtain financing or credit from banks, including for machine renewal.

“Because it’s considered a sunset industry, it’s very difficult to get bank loans,” said Purbaya in the Kebon Sirih area, Jakarta, quoted on Thursday (7/5/2026).

Therefore, he promises cheap credit for the textile, shoe, and other export-oriented manufacturing industries for machine renewal.

Purbaya emphasised that this cheap 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 their associations, and we will implement it in not too long a time,” he explained.

Purbaya said he has held meetings with textile industry players and textile product manufacturers for the provision of this cheap credit facility. Thus, he is confident in offering this facility to LPEI so that machine renewal can be carried out.

“Those that need machine renewal will be ensured to have access to lower interest rates or LPEI rates of 6% if I’m not mistaken. If necessary, we’ll lower them further,” stated Purbaya.

According to Purbaya, one indicator for the textile and shoe industries that can receive cheap machine renewal credit is those that still have promising business prospects. If they have been under pressure for a long time, he certainly will not provide the cheap credit.

“So we will ensure they get sufficient financing if they need it. But if the prospects are poor, we won’t give it,” he explained.