The continuing turbulence in the world economy does not seem to worry Ko Chao Chih, a Taiwanese investor. An owner of a textile and garment factory in Cimahi, West Java, Ko has long shifted his business focus from exports to the United States and European countries to domestic sales as demand here continues to rise significantly.

“Before 1998, the overseas market was better, with our firm exporting 80 percent of output while allocating 20 percent for the local market. But now, 60 percent of the output is sold in Indonesia and only 40 percent goes for export,” said Ko, whose factory produces spandex and materials to make cloth and sports shoes mostly for local manufacturers, and garments for export.

Being upbeat about Indonesia’s robust economic growth, the 68-year-old businessman said that the firm would maintain its presence in the country despite a key problem — s...