Tuesday, July 16, 2024

Twelve investors committed to millions of dollars investment, creating over 40,000 jobs

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A total of 12 investors from China and Singapore as well as domestic investors have expressed their interest to invest in the Indonesian Textile sector.

Septian Hario Seto, Deputy for Investment and Mining Coordination to Coordinating Minister for Maritime Affairs and Investment, said that the majority of foreign investment came from China, while two of them are from within the country.

He cited that there were two textile factories that would invest in the near future.

“The total investment from the 12 investors is in the range of hundreds of millions of US dollars, but the workforce absorption of the entire investment is more than 40,000 people,” Seto said as quoted by Katadata.co.id, on Friday, June 28, 2024.

He said further that all funds will be invested in the textile industry such as yarn and fabric, while the production results will be marketed in the export market.

He assessed that the investment from the 12 investors would not be affected by the current condition of domestic textiles.

Seto explained that there are 12 export market destinations for the 12 investors, but did not specify which markets they will target.

Meanwhile, the investment factories will supply raw materials for a number of world-famous brands such as Adidas, Uniqlo, Puma, H&M, and Armani.

“Local investors who report investment plans for expansion will also sell their products to big brands. So, the export destination countries can be anywhere,” he said.

He also assessed that the domestic textile industry that plans to stop production must carry out business efficiency. Currently, there are two domestic textile industries that will expand in 2024.

Earlier, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said that Indonesia succeeded in getting investment commitments after a working visit to China.

One of the things that Luhut highlighted regarding this investment commitment was the vertical integration of textile investors and the company’s treatment of employees.

“Almost all employees and their families live in dormitories provided by the company. They also get 3 free meals a day,” Luhut said.

He added that Chairman of the Chinese textile company considered that employees were the first priority.

“If employees are happy, then they will contribute greatly to the company,” Luhut said.

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