Business · Economy · 1 hr ago
Indonesia’s labor-intensive industry loans reach about 30% of target
Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, said the labor-intensive industry loan program had used about 30% of its target by November.
The program supports upgrades to machinery and production tools, as well as competitiveness, in labor-intensive industries.
Because uptake has been low, the government has expanded the loans to cover working capital as well as investment.
It plans to allocate Rp600 billion to the program in 2027, the same amount as its target this year.
The program is part of a wider government credit budget that will rise to Rp394 trillion in 2027, from Rp337 trillion this year.
The government says the next step is to encourage more businesses to take up the loans.
Indonesia’s labor-intensive industry loan program had used less than 30% of its target by November 2026, Coordinating Economic Minister Airlangga Hartarto said.
The government is encouraging more lending by expanding the program to cover working capital, as well as investment.
The government plans to allocate Rp600 billion to the program in 2027.
That allocation is part of a planned Rp394 trillion in government program loans for 2027.
The program supports production equipment upgrades, modernization and competitiveness in labor-intensive industries.
- Who
- The Indonesian government and businesses in labor-intensive industries.
- What
- Less than 30% of the loan program’s target had been used by November 2026. The government plans to allocate Rp600 billion to the program in 2027.
- When
- By November 2026; the next allocation is planned for 2027.
- Where
- Indonesia.
- Why
- The program is intended to support production equipment upgrades and modernization, and improve the competitiveness of labor-intensive industries.
This story does not have two clearly opposing sides.
Government program lending reached Rp2,440 trillion through 58.1 million loan agreements by October 2026.
The government reported that 68% of program financing went to productive sectors, with a non-performing loan ratio of 2.14%.
The labor-intensive industry loan program had used less than 30% of its target.
Airlangga said the government was encouraging lending by expanding the program to include working capital.
The government plans to allocate Rp600 billion to the labor-intensive industry loan program, within a total program-loan allocation of Rp394 trillion.
- Program uptake
- Less than 30% of target by November 2026
- 2027 allocation for labor-intensive industry loans
- Rp600 billion
- Total planned program loans for 2027
- Rp394 trillion
- Planned KUR allocation for 2027
- Rp325 trillion
- Program lending since 2015
- Rp2,440 trillion through 58.1 million agreements by October 2026
What people are saying
Jadi kredit untuk padat karya, kemarin kita sediakan anggaran, tetapi anggarannya baru dipakai kurang dari 30% Dengan target 600 miliar. Jadi ini kita dorong lagi aan sebetulnya kreditnya kita sudah perluas, bukan hanya kredit investasi tetapi juga kredit modal kerja