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Chinese garment factory in RI could create 108,000 jobs, Luhut claims
Investment comes amid a struggling local textile industry and falling demand from foreign buyers as well as layoffs.
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People shop on April 3, 2024, before the Idul Fitri celebration at the Tanah Abang textile market in Jakarta. The Industrial Confidence Index has revealed that textiles and textile
products (TPT) have performed well over the last two months. The TPT industry outperformed expectations with year-on-year (yoy) growth of 2.64 percent, but the industry’s export value
rose only 0.19 percent yoy to US$2.95 billion in the first quarter of 2024. (AFP/Adek Berry)
C
oordinating Maritime Affairs and Investment Minister Luhut Pandjaitan claimed that a new Chinese garment factory in the country could absorb up to 108,000 workers, and he expects the company to realize its investment soon.
The senior minister said that the company would build its factory in West Java, close to Chinese carmaker BYD’s manufacturing facility in Subang. The garment producer, he said, would also set up another factory in Sukoharjo, Central Java.
Luhut said he is confident with the infrastructure that the country could offer to its Chinese investors, including Kertajati International Airport, which is a one-hour drive from Subang.
“I said okay. I called the agrarian and spatial planning minister to see if he could deal with the land status, and he said ‘Yes we can. It will be done by next month’. We’ll see,” Luhut said on Thursday, as quoted from Kumparan.
Read also: Chinese textile firm reportedly looking to invest in Indonesia
The local textile industry has been struggling to stay afloat amid falling demand from foreign buyers.
Last year, industry players voiced concerns over declining exports and Indonesia, like many countries, struggled to find new markets.
