Heaptalk, Jakarta — Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the government is accelerating the completion of the European Union-Comprehensive Economic Partnership Agreement (EU-CEPA).
He emphasized that this is crucial to boost competitiveness and open wider export opportunities for Indonesia’s textile industry. “The largest market for Indonesia’s textiles and textile products is the European Union. This market accounts for nearly 30% of global demand, while the United States is only around 15%,” he said at the Presidential Palace in Jakarta on Thursday (03/20).
Given the significant demand, Airlangga believes that expediting the completion of the EU-CEPA is essential to drive the growth of the national textile industry. He pointed to Vietnam’s experience, which has a comprehensive partnership with the European Union, enabling it to increase imports by 50%. He emphasized, “Therefore, we must finalize the EU-CEPA as soon as possible.”
In addition, the government has also prepared a machinery revitalization package to enhance the industry’s competitiveness. “Regulations for machinery revitalization will soon be issued, with the government providing an investment subsidy of Rp20 trillion. Without efficient machinery, our competitiveness will be hindered in terms of energy usage and production speed,” Airlangga said.
As part of this policy, the government also provides investment credit for labor-intensive sectors, including textiles, footwear, food and beverages, and furniture. This credit will come with a 5% interest subsidy and will be available for 8 years. The government hopes that with this policy, Indonesia’s textile industry can regain momentum after the EU-CEPA is finalized, creating new jobs and boosting exports. “We hope that new jobs will be created, and we are targeting that, after the EU-CEPA, this industry will thrive again,” Airlangga concluded.
