President Prabowo Pushes Major Deregulation to Boost Investment and Job Creation

President Prabowo Subianto has ordered large-scale deregulation to enhance industrial competitiveness, create jobs, and accelerate investment, particularly in textiles, footwear, and other labor-intensive sectors.

This was conveyed by Coordinating Minister for Economic Affairs, Airlangga Hartarto, during a press conference at the State Palace. Also present were Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan, Finance Minister Sri Mulyani, and DEN members M. Chatib Basri and Marie Elka Pangestu.

Airlangga highlighted that the textile and textile products sector currently employs nearly 4 million workers and records over US$ 2 billion in exports.

"President Prabowo has instructed the government to simplify and facilitate access to raw materials, combat illegal imports, and streamline the supply chain. Additionally, tariff harmonization will be implemented to support the industry," Airlangga stated on Wednesday (March 20, 2024).

Furthermore, the government will address dumping practices through anti-dumping measures to protect domestic industries.

Labor-Intensive Industries to be Included in PSN, Government Provides Incentives and Subsidized Loans

President Prabowo Subianto is also advocating for labor-intensive industries, such as textiles and footwear, to be included in the National Strategic Projects (PSN). This inclusion will grant easier licensing processes and access to various fiscal and non-fiscal incentives.

To strengthen industrial competitiveness, the government is also preparing a machinery revitalization package. Under this initiative, Rp20 trillion in investment credit with a 5% interest subsidy for eight years will be allocated to labor-intensive sectors such as textiles, footwear, food and beverages, and furniture.

The regulations for this credit scheme and the 5% interest subsidy will be introduced soon, ensuring implementation right after Eid.