With relatively stagnant growth in the manufacturing sector, the government is considering assigning a special institution to provide long-term financing for industrialists, who used to provide a major boost for economic growth.

Once an outstanding feature in the domestic economy, the manufacturing sector seems to have hit a rough spot, with the Central Statistics Agency (BPS) recording only 4.29 percent expansion last year, lower than the economic growth that stood at 5.02 percent. The sector’s contribution to economic growth stood at 20.51 percent.

The absence of a financial institution or bank with a specific focus on industry financing has made it difficult for many business players, particularly those in remote areas, to seek additional sources of capital, says Industry Minister Airlangga Hartarto.

“To encourage more equality [between regions], we must push...