Heaptalk, Jakarta — The Financial Services Authority (OJK) assesses that the textile, textile products, leather, and footwear industries remain promising sectors. The textile industry supports the national economy and is one of the largest labor-intensive sectors. This is reflected in the increased investment realization in the textile sector, which reached Rp 39.21 trillion in 2024, up 31.1% from the previous year’s figure of Rp 29.92 trillion.
However, Dian Ediana Rae, Chief Executive of Banking Supervision at OJK, stated that amid current national and global economic dynamics and challenges, banks must prioritize measured risk management and prudent principles, particularly regarding credit distribution.
“Given the current economic dynamics and challenges, along with the continued growth in the textile industry, support from stakeholders, including synergy with banks, will help develop this sector, a key pillar of national economic growth,” Dian said on Sunday (04/05) in Jakarta.
According to Dian, the government’s policies to boost domestic demand, as emphasized by the President in the recent Economic Dialogue, along with supportive trade, industrial, and investment policies, are expected to enhance the performance of the textile sector. These measures are crucial in addressing industry disruptions, such as high production costs and illegal textile imports, which ultimately increase credit risks for banks financing textile businesses.
“Government regulations on trade policy, industrial policy, and investment policy are highly anticipated to tackle disruptions in the textile industry, including rising production costs and illegal imports, which could elevate credit risks for banks,” he added.
Meanwhile, Trioksa Siahaan, Senior Vice President of the Indonesian Banking Development Institute (LPPI), noted that the textile industry currently faces significant challenges, particularly due to the influx of imported products from China and India. “If there is an increase in credit to the textile sector, banks must remain selective to maintain credit quality,” Trioksa said.
He also mentioned that while lending to the textile sector remains attractive, banks must carefully assess business risks due to the high volume of textile imports. “The government must also protect the domestic textile industry to help it compete with imports. Incentives—such as tax breaks and other support—are needed,” he concluded.
