Home / Knowledge / News / Textiles / Govt initiates second phase of subsidies for textile sector
Govt initiates second phase of subsidies for textile sector
28
Mar '08
On March 27, the Government of Indonesia launched its second phase for rejuvenating the textile industry which entails disbursing of Rp266 billion as subsidy for machinery restructuring and Rp45 billion as interest rate subsidy.

This year the Government has plans to attract 150 to 160 textile producing companies by allowing subsidies in form of 10 percent discount on purchase of imported textile machinery and a concession of 15 percent on buying domestic textile equipments.

Moreover, the interest rate subsidy would cover nearly half of the 14 percent interest rate imposed on the textile industry. For the present phase, the number of companies receiving such subsidies has been increased from 92 to 160.

It was in April last year that the first phase of the program was launched. The Government had assigned Rp255 billion of which a total subsidy of Rp153.31 billion was absorbed by the participating companies.

Although the first phase was not promoted very well, experts believe that it attracted domestic and foreign investments worth Rp1.55 trillion within the industry. Besides, it also helped in generating 4,395 new jobs, expanded production capacity from 10 to 15 percent and increased productivity from 16 to 25 percent.

The present international market is dominated by China but the coming few years will see a number of European countries like Poland, Serbia and Montenegro playing a crucial role. This is sure to make competition more severe for Indonesia.

Textile exports of Indonesia have showed a remarkable consistency by standing at around $7-8 billion annually for the past eight years.

However, experts suggest that for promoting domestic brand in the global arena, producers must focus on the production of rayon.


Must ReadView All

ITC, ICS tie up to help Moroccan textile value chain

Textiles | On 21st Apr 2018

ITC, ICS tie up to help Moroccan textile value chain

The International Trade Centre (ITC) has partnered with ICS, which...

Bangladesh garment manufacturers call for fair pricing

Apparel/Garments | On 21st Apr 2018

Bangladesh garment manufacturers call for fair pricing

Bangladesh garment manufacturers want a ‘commensurate adjustment’ by...

Pak ministry proposes extension to PM package for 2018-19

Textiles | On 21st Apr 2018

Pak ministry proposes extension to PM package for 2018-19

Pakistani textile ministry has reportedly proposed extending the...

Interviews View All

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search