Coordinating Minister for the Economy Airlangga Hartarto met with representatives from the Taiwan Textile Association on Friday, November 1, 2024, discussing potential investment in Indonesia’s textile sector.
Taiwanese companies expressed interest in expanding their investments in Indonesia, particularly in regions like Purwakarta, West Java, where some textile companies have already established operations.
Airlangga outlined four primary conditions raised by the Taiwanese investors before they commit to further investments in Indonesia.
- Easier Land Acquisition: The investors requested a streamlined process for purchasing land. Airlangga suggested that they consider Special Economic Zones (SEZs) for easier access to environmental impact assessments (Amdal) and land;
- Compliance with ESG Standards: High-end textile firms emphasized their need to comply with Environmental, Social, and Governance (ESG) standards, particularly regarding green energy sources. West Java, noted Airlangga, offers access to various sustainable energy options such as gas, hydro, and solar floating energy;
- Competitive Gas Prices for Industry: Taiwanese companies highlighted concerns about Indonesia’s industrial gas prices, currently exceeding US$12 per MMBTu. Airlangga noted that a price adjustment to around $9 per MMBTu, common for many industries, might better support production costs;
- Market Certainty: Taiwanese investors are seeking assurances on market stability. Many currently see higher returns in markets like China and Vietnam;
These discussions mark Indonesia’s ongoing efforts to attract international investment while addressing investor needs, paving the way for growth in the country’s textile industry.
