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Jakarta Post

Industry Ministry may set minimum subsidy allocation for textile manufacture

  • Mustaqim Adamrah

    The Jakarta Post

Jakarta   /   Wed, January 28 2009   /  05:03 pm

The government is planning to set a minimum amount of interest subsidy that a textile company can apply for under a revitalization program designated for the industry. The Industry Ministry's textile industry director, Arryanto Sagala, said Tuesday the ministry had come up with that idea to balance government costs between the amount of interest subsidy received by a company and the cost of verification the Ministry must cover. "There should be a minimum amount of subsidy to strike a balance," he told reporters at the ministry. "That minimum amount should be a little bit more than the verification costs," he added. Arryanto pointed out as an example a company that had asked for Rp 10 million (US$884.96) in a 10 percent interest subsidy, while the government had to spend around Rp 24 million to verify the company's documents before deciding to grant the subsidy. H...