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Special desk launched to help footwear and textile industries

(Kompas/Priyombodo)The Investment Coordinating Board (BKPM) has established a special desk dedicated to solving problems faced by those who want to invest in footwear and textiles

Ayomi Amindoni (The Jakarta Post)
Fri, October 9, 2015

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Special desk launched to help footwear and textile industries (Kompas/Proyombodo) (Kompas/Proyombodo)

(Kompas/Priyombodo)

The Investment Coordinating Board (BKPM) has established a special desk dedicated to solving problems faced by those who want to invest in footwear and textiles.

According to BKPM chief Franky Sibarani, investors in both sectors who have financial problems are expected to come to the special desk, which was launched on Friday so that they could secure their business and continuously employ their workers.

"We received reports that 13 textile companies face problems, eight of which plan to reduce production and five others plan to stop their businesses," said Franky during a press conference at his office.

The establishment of the help desk, he added, is part of BKPM's effort to keep textile investments competitive so that there are a large number of jobs. "This special desk is intended to help investors who are facing problems, so that layoffs can be prevented," he said.

BKPM'€™s deputy director for investment monitoring and realization Azhar Lubis added that his office would follow up the report from the help desk and would help investors solve their problems.

However, Azhar said that this desk would not contribute maximally if there was no ministerial and institutional cooperation.

"Some of the problems that hinder the realization of the investment are the existence of interlocking regulations," he said, adding that the establishment of this special desk is expected to resolve the investment anomalies that occur particularly in the textile sector.

Although there are reports about the problems faced by the textile industry due to the economic slowdown, BKPM said that the investment in this sector continues to rise. It recorded positive growth on textile investment realization in the first semester of 2015 by 58 percent worth Rp 3.88 trillion (US$290.52 million) compared to the first part of 2014.

Textile sub-sector investment also recorded positive growth. The textile fiber processing industry grew 213 percent to Rp 2.4 trillion, the weaving textile industry grew 613 percent to Rp 163 billion, the clothing industry grew 16 percent to Rp 941 billion and the clothing accessories industry grew 563 percent to Rp 216 billion.

Meanwhile, investment in the footwear industry increased by 613 percent in the first part of 2015. (bbn)(++++)

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