Akmalal Hamdhi, Jakarta – Finance Minister Purbaya Yudhi Sadewa has pledged Rp 2 trillion ($119.29 million) in export credit facilities through Indonesia Eximbank to support the furniture industry, responding to complaints over limited access to affordable funding.
Speaking at a press conference at the Finance Ministry in Jakarta on Tuesday, Purbaya said the facility would carry a competitive interest rate of 6% to help exporters boost productivity and strengthen their global competitiveness.
"We are now preparing Rp 2 trillion for textile and furniture companies. They can come to Indonesia Eximbank, and the interest rate will be 6%. That is what I promise them," Purbaya said.
He added that Indonesia Eximbank's current loan exposure to the furniture industry stood at only around Rp 200 billion. While industry players had proposed a credit ceiling of up to Rp 16 trillion, the government decided to approve an initial Rp 2 trillion as a stimulus for growth.
The incentive proposal was earlier submitted by the Indonesian Chamber of Commerce and Industry. Its chairman, Anindya Bakrie, has highlighted Indonesia's relatively small share in the global furniture market, with exports totaling just $2.5 billion compared with an estimated global market value of $300 billion.
Beyond financing, business groups have also stressed the need for market diversification, as Indonesia's furniture exports remain heavily dependent on the US market, which accounts for about 60% of total shipments.
Meanwhile, Indonesian Furniture and Handicraft Industry Association (Himki) chairman Abdul Sobur said the industry was expecting concrete government measures to accelerate growth and lift export contributions.
"One of the most significant measures is lowering interest rates or providing special facilities where access to cheap capital is available," Abdul Sobur said.