REPUBLIKA.CO.ID, SUKOHARJO -- The industry ministry will continue the program to help modernize the country's textile industry.

The government will set aside Rp100 billion this year to finance the restructuring of textile factories, Industry Minister Saleh Husin said.

"The program will be continued in 2015 to improve the competitiveness of the country's textile industry," Saleh said here on Friday.

He said textile industry is important not only because it is a major export earner, but it is also a major job provider as a labor intensive industry.

Last year, the country exports of textile and textile products were valued at US$13 billion.

Saleh said the program has been running since 2007 with the government helping the procurement of production facility with the latest technology to improve productivity.

The program has succeeded in improving the productivity of the country's textile industry by 4-10 percent with energy efficiency by 2-8 percent as well as creating 241,8135 new jobs.

"This program is effective in reducing unemployment," Saleh said.

Secretary general of the industry ministry Anshari Bukhari said the program is still needed to sustain the textile industry amid the tight competition in the world market.

"I think the program is still needed for the next 5 years," he added.

Since 2007, the government has provided around Rp1.4 trillion for the program , he said.

"This year the government will provide rp100 billion for the program . This means the industrialists are expected to invest 10 times that much ," he said.

Meanwhile, the CEO of PT Dan Liris, Michelle Tjokrosaputro and President director of PT Sri Rejeki Isman (Sritex) Iwan Setiawan Lukminto said the program is needed especially with the increase in electricity tariff and high interest rate.

"We hope the program could be continued and expanded and be made a priority program by the government," Iwan Setiawan said.

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