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Chinese textile firm reportedly looking to invest in Indonesia
A manufacturer for Nike, Adidas and other brands is keen to invest in Indonesia, a government official has revealed.
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An employee works at a textile factory in Hangzhou, in eastern China's Zhejiang province, on March 17, 2024. (AFP/STR)
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Chinese textile manufacturer for apparel and footwear brands like Nike and Adidas is looking to invest in Indonesia, according to a government official.
Septian Hario Seto, undersecretary for investment and mining at the Office of the Coordinating Maritime Affairs Minister, claimed a factory was planned for West Java, CNBC Indonesia reported.
Septian said he had met the chairman of the potential investor, which had a factory in the Chinese city of Ningbo, South of Shanghai, and that the company was committed to building a textile plant in Indonesia.
The investment to be poured into the facility is expected to be in the hundreds of millions of dollars and create some 10,000 jobs, according to the official.
Indonesian exports of textiles, clothing and accessories, under codes 61 and 62 of the Harmonized System (HS) trade classification, amounted to US$9.6 billion in 2022, according to data from the United Nations Comtrade database, while imports amounted to just $586 million.
In the first quarter of 2023, South Korea was the largest foreign direct investor in the Indonesian textile industry with a total of $29 million in 125 projects. Taiwan followed with total direct investment of $14 million for 27 projects, then India with $11 million, according to a report published by Bisnis in June 2023.
Indonesia’s leather goods and footwear industry attracted $574.3 million in foreign direct investment (FDI) from January through September 2023, according to the Indonesian Footwear Association (Aprisindo) referring to Indonesia Investment Coordinating Board (BKPM) data, as reported by Bisnis on Jan. 30.
