"We have allocated Rp2 trillion for textile and furniture companies. They can access this through LPEI at a 6 percent interest rate," he said in a press conference at the office of the Ministry of Finance in Jakarta on Tuesday.
Purbaya explained that LPEI’s current financing volume has only reached Rp200 billion, while furniture industry players have proposed increasing the figure to Rp16 trillion.
For now, the minister has approved the proposal with a financing ceiling of Rp2 trillion.
The proposal for financing incentives was conveyed during a meeting between the Indonesian Chamber of Commerce and Industry (Kadin Indonesia) and the Ministry of Finance in Jakarta on Friday (December 19).
Kadin Indonesia Chairman Anindya Bakrie said business representatives had proposed various measures, ranging from incentive schemes to deregulation, to support the furniture industry.
Kadin Indonesia noted that global furniture export opportunities are valued at around US$300 billion, while Indonesia’s current share is only about US$2.5 billion.
This indicates that the contribution of Indonesia’s furniture industry remains relatively small despite the vast potential of the global export market.
In addition to financing and industrialization strategies, business players also proposed diversifying export destinations, as Indonesia’s furniture exports are currently heavily concentrated in the United States, which accounts for about 60 percent of total exports.
Meanwhile, Indonesian Furniture and Craft Association (HIMKI) Chairman Abdul Sobur said his association hopes for concrete government support, including interest rate reductions or access to low-cost financing.
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Translator: Imamatul Silfia, Raka Adji
Editor: M Razi Rahman
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