Chinese company PT Xinhai Knitting Indonesia has broken ground on its new textile and textile products (TPT) factory in Brebes, Central Java, marking a significant investment into Indonesia’s manufacturing sector.

The groundbreaking ceremony took place on Friday, July 11, 2025, and was attended by Brebes Regent Paramitha Widya Kusuma, Deputy Minister of Industry Faisol Riza, and Xinhai management in Ciampel Village, Kersana District.

According to the Ministry of Industry, Xinhai is investing US$40 million (Rp652.2 billion) into the 8-hectare facility, which is expected to create up to 8,000 jobs. The factory will supply H&M, a global fashion brand and long-term partner of Xinhai.

“We appreciate the commitment of PT Xinhai Knitting Indonesia and H&M in investing in Indonesia. This is a strategic step to strengthen the national TPT industry’s competitiveness,” Deputy Industry Minister, Faisol Riza, said.

He emphasized that the factory’s inclusion in H&M’s global supply chain, known for its high sustainability standards, aligns with Indonesia’s goal of building resilient, inclusive, and environmentally conscious manufacturing.

The factory is slated to begin operations in July 2026, and will incorporate solar panels and a wastewater treatment system aligned with green industry standards.

“This investment proves investor confidence in Indonesia − not just in terms of physical development, but as a long-term partnership benefiting investors, the government, and the local community,” Faisol said.

Global confidence

Xinhai’s Director Huang Lu Yu cited Indonesia’s strategic maritime position, abundant labor, and warm local community as key reasons for choosing Brebes. The company already operates large-scale knitwear factories in Nantong, China, and Yangon, Myanmar, supplying global brands like H&M.

“Brebes offers great potential, and we are confident in investing here as part of our long-term partnership with H&M,” Huang said.

This investment also comes amid a wave of factory relocations from China to Indonesia, especially from labor-intensive sectors such as textiles. Coordinating Minister for the Economy, Airlangga Hartarto, previously noted that at least 15 Chinese textile companies were considering relocating to Indonesia.

Boosting textile sector

The investment brings hope to Indonesia’s textile sector, which has faced mass layoffs and bankruptcies in recent years. As of the first quarter (Q1) of 2025, the industry posted 4.64 percent growth, and employed over 3.76 million workers (19.18 percent of the national manufacturing workforce). Export value between January–April 2025 reached US$3.38 billion, up 3.57 percent year-on-year.

To support sustainable competitiveness, the Ministry of Industry has laid out five strategic policies:

• Use of eco-friendly raw materials and market;
• Separation for recycled TPT products;
• Efficient water, energy, and chemical use;
• Strengthening circular economy practices;
• Incentives for green industry players;
• Pilot projects for post-consumer textile recycling.

“We aim to build a strong industrial workforce through collaboration among investors, local governments, and vocational institutions, especially in new industrial zones like Brebes,” Faisol said.

“This factory’s renewable energy commitment and green waste management design mark a major step toward a competitive and sustainable textile industry,” he added.