Indonesian government allocates 20 trillion to support labor-intensive industries

The government led by President Prabowo plans to allocate 20 trillion rupiah in 2025 to rescue and strengthen labor-intensive industries, with the funds being disbursed through a labor-intensive investment credit program focusing on textiles, garments, footwear, furniture, leather, children's toys, food and beverages, and other sectors.The program consists of interest subsidies of 5% for 8 years, with loan amounts ranging from 500 million to 10 billion dong, and requires entrepreneurs to have a viable business, at least 2 years of experience and employ at least 50 workers. The Economic Coordination Minister said the government has prepared a 20 trillion rupiah plan to support the revitalization of machinery for small and medium-sized enterprises in labor-intensive industries in the form of investment subsidies. This initiative aims to improve the competitiveness of domestic industries and reduce dependence on imported products. The government hopes to sustain the livelihoods of millions of workers in the sector through incentives, while also strengthening trade regulations to protect domestic industries as part of the Prabowo government's strategy to drive the economy to grow by 8% per year and make Indonesia a more independent and competitive industrial nation.