Jakarta – The government has emphasized the importance of strengthening access to financing for the textile sector as a strategic step to prevent a wave of layoffs amidst global challenges.
To anticipate this, the Financial Services Authority (OJK) is strengthening sustainable financing in the Textile and Textile Products (TPT) Industry sector, which in turn will help survive the onslaught of imports and weakening performance that has resulted in mass layoffs.
The Chief Executive of OJK Banking Supervision, Dian Ediana Rae, said that cross-sector collaboration is important in creating a healthy, resilient, and globally competitive TPT industry ecosystem.
“The national TPT industry has great potential both in terms of the domestic market and exports. However, structural challenges such as high logistics costs and dependence on certain export markets need to be addressed immediately and comprehensively through the Indonesia Incorporated approach, namely real collaboration between industry players, banking, BUMN, and the government,” said Dian.
Dian also emphasized that the financial services sector, especially banking, plays a crucial role as an enabler in strengthening financing and the business structure of the TPT industry.
“The synergy between the banking industry and TPT industry players needs to be strengthened so that financing distribution can be more targeted and support the growth of the real sector in a sustainable manner. Expansion of financing access must also be accompanied by strengthening risk management and the principle of prudence,” said Dian.
Dian continued, all stakeholders are expected to find solutions to reduce the high logistics costs of TPT product exports in Indonesia so that they can be competitive with other exporting countries.
In addition, diversification of the export market for Indonesian textile products is also needed outside the main importing countries, such as the United States, Turkey, China, Malaysia, and Japan.
“This is in order to face the challenges of global trade that arise from deglobalization which eliminates the fairness aspect of global trade,” said Dian.
Meanwhile, Bank Mandiri Corporate Secretary, M. Ashidiq Iswara said that the textile sector is included in the processing industry that contributes greatly to the economy.
“Bank Mandiri will continue to strengthen synergies with industry players, regulators, and other strategic partners, in order to encourage the growth of the manufacturing industry sector in an inclusive and highly competitive manner,” said Ashidiq.
Strengthening textile industry financing is a very effective strategic step in preventing layoffs, because it provides the liquidity support needed by business actors to maintain operations and workforce amidst global challenges.
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