Indonesia’s Financial Services Authority (OJK) published a press release on its Jakarta coordination meeting with government agencies, banks and textile and textile products (TPT) industry participants aimed at strengthening financing support and the sustainable finance ecosystem for the sector. The discussion framed banking as a key enabler for more targeted real-economy lending alongside strengthened risk management and prudential practices. The meeting brought together the Coordinating Ministry for Economic Affairs, the Ministry of Trade, the Ministry of Industry, the Ministry of Investment and Downstreaming, and the Fiscal Policy Agency to address TPT challenges, synergy opportunities and financing needs, following presidential direction and the long-term national development plan for 2025–2045 that prioritises TPT in economic transformation. OJK’s Executive Head of Banking Supervision highlighted structural issues including high export logistics costs and reliance on a limited set of export markets, calling for a more integrated cross-sector approach and export market diversification. OJK reported that as of March 2025, bank credit to the TPT and footwear sector reached IDR 160.41 trillion (2.03% of national banking credit), while the TPT sector employed 4 million workers in 2024 and grew 4.64% year-on-year as of March 2025. OJK encouraged the outcomes of the discussion to serve as the basis for concrete policy recommendations to strengthen the competitiveness and sustainability of the national TPT industry, alongside referenced government incentives and industry requests for integrated policies covering trade protection measures, transparent environmental permitting, import monitoring, affordable financing and training, supply chain strengthening, clean energy adoption, higher domestic content and circular economy development.

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