The Ministry of Industry has confirmed the arrival of new investments in textile and textile products (TPT) sector during the second half of this year, which is expected to seize market opportunities in Europe following the conclusion of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA).

Taufiek Bawazier, Director General of Chemical, Pharmaceutical, and Textile Industries at the Ministry of Industry, revealed that the investments come from Sweden, China, and Japan. These new investors are set to establish eco-friendly fabric manufacturing and dyeing facilities.

“The purpose of these investments is to prepare for the implementation of IEU-CEPA, considering the strict sustainability compliance requirements for accessing the European market, particularly regarding the chemicals used in fabric dyeing,” Bawazier said on Friday, August 1, 2025.

He further noted that one of the innovations brought by these investors involves optimizing energy efficiency in the dyeing process, a step expected to reduce carbon emissions and meet environmental standards for the European market.

The industry is also increasing its use of polyester fibers made from recycled plastic bottles, aligning with Europe’s green campaigns.

“These are all efforts by our textile industry to integrate into Europe’s green industry,” Bawazier added.

He emphasized that these new investments have also been encouraged by the revision of Trade Minister Regulation No. 8/2024 on Import Policies and Regulations. He said the policy helps protect domestic market as importing textile products now requires technical consideration from his office.

More specifically, Regulation No. 17/2025 outlines that all textile imports must align with the national textile production and demand balance compiled by the ministry.

“Previously, only yarn and fabric imports required technical review. Regulation No. 17/2025 expands this requirement to include clothing imports. We now have a more complete database,” he said.

Bawazier confirmed several investment interests are expected to materialize in the second half of the year. These fresh investments are targeted at supporting both the upstream and intermediate levels of the textile supply chain.

“This means the new investments won’t compete with existing TPT factories but will instead fill the structural gaps in our industry,” he concluded.