The Chinese government is to provide the Indonesian textile industry with a US$150 million loan to assist in restructuring.

Indonesia's Trade and Industry Minister Rini Soewandi says that the funds will be used to modernise Indonesia's textile manufacturing technology and to help renovate the industry's infrastructure.

Rini added that the loan is likely to encourage banks who have so far been wary of providing credit to help finance the industry's revival.

The Indonesian Textile Association (API) will provide information on companies who may be eligible to benefit from the loan, which will have an annual interest rate of 3 per cent.
 
The Indonesian textile industry needs to upgrade to cope with the increased competition expected when export quotas expire next year.