Many banks of Indonesia have agreed to provide loans to the country's distressed textile industry.
It was revealed that revamping of the 15-year old plants would require an estimated US $5 billion.
Ansari Bukhari, the Industry Ministry's Director General, said that the banking sector invested almost Rp3.4 trillion, that is about US $357.89 million, for the sector in 2005.
Ansari, however, also added that loans will be granted to companies with good financial track record.
Ernovian Gysmi, Secretary-General, Indonesian Textile Producers Association (API), informed that the emphasis will be on upstream industries like spinning and weaving, that would eventually affect downstream sectors, like the garment industry.
The Japan Textile Federation and Taiwanese government have expressed interest in providing financial assistance to this industry.
Financial institutions and banks including Bank Mandiri, Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI), Bank Danamon and Bank Central Asia (BCA), have all made preliminary agreement to provide loan packages to textile industry.
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