REPUBLIKA.CO.ID, JAKARTA -- The Indonesian Chamber of Trade and Industry has urged the government to set up a special industrial financing institution in a bid to increase national competitiveness.

"We hope that the government will soon establish a special industrial financing institution as suggested by Law Number 3 of 2014 on Industry," Kadin Deputy Chief for Industry Sudirman M. Rusdi stated here on Tuesday (5/5).

Speaking at a seminar on investment financing in the industrial sector, Rusdi said the law suggested that a financing institution for investment in the industrial sector should be established.

The establishment of the institution is regulated in a separate law called the Law on Industrial Development Financing Institution, which is now being formulated by the government for endorsement by the House of Representatives (DPR).

He affirmed that businesses were now waiting for the establishment of a special industrial financing institution, which they consider could increase competitiveness.

"The institution is designed in accordance with the needs of businesses. For instance, the institution provides competitive financing, which is cheaper than banking commercial credits, both for investment and working capital," he remarked.

Besides this, the institution is also designed to facilitate certain financing schemes for priority or strategic industrial restructuring and for industries that have not yet developed optimally in Indonesia.

The presence of such an institution is expected to improve the competitiveness of the national industry to be at par with that of South Korea, India, Taiwan, Thailand, and others.

"The industrial sector, as the prime contributor to the country's economy, needs competitive and long-term financing for investment and working capital," Rusdi added.

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