October - 2009

 

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Textile producers allocate funds to procure new machinery

183 middle class Indonesian textile and garment producers allocated some 1.78 trillion rupiah (about US $183.3 million) to procure new machinery this year. The allocation figure came up from Indonesia's Industrial Ministry's first scheme program in providing 10% price discount for the producers intended to procure new production machines this year.

Arryanto Sagala, Senior official at the Ministry, Textile Machine sector said that besides the first scheme discount program used by those 183 textile producers, the Ministry also provides the second scheme for the smaller scale textile producers. He said that as of now 27 textile producers have allocated 46.9 billion rupiah (about US $4.8 million) to procure production machines with soft loan program that offers 7% interest rate.

The scheme to encourage textile producers in the country to procure new textile production machines has been initiated since 2007. Government has allocated 240 billion rupiah (about US $24.7 million) this year. Of that allocation, government set 190 billion rupiah (about $19.5 million) for the first scheme and 50 billion rupiah (about $5.1 million) for the second scheme.

 
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