Friday, 8 January 2016


Textile and textile product industry still gives great hope in Indonesia. Last week, Minister of Industry, Saleh Husin, inaugurated a new plant of PT Eco Smart Garment Indonesia, a subsidiary of PT Pan Brothers, Tbk in Boyolali, Central Java. This modern garment factory was built with an investment of USD 34 million and provides employment to 12,000 people.

“I appreciate the investment made in Central Java, and is expected to enhance industrial growth and the national economy. I also requested that the company could build apparel industry outside Java, since this group is integrated industry from upstream to downstream, ̋said Minister of Industry in his speech.

This integrated textile company has 10 subsidiaries engaged in several business sector four companies in the Government in the garment industry, three companies in product development and its role as an agent for product purchases, one company in the textile industry, 1 company in the sewing industry, thread embroidery industry, and 1 company in the retail business for a holding company total employees to date reached 35,493 people with an investment of USD 5.3 million.

If seven plants have established in Central Java, it is expected to absorb 21,000 workers with an investment of USD 60 million, “As of August 2015 at the Investment Coordinating Board (BKPM). New huge potential economically during the first half of 2015, there is quite a lot new investments that have been inaugurated. At least there are 15 industries in Bekasi, Cikarang, Cilegon, Bogor, Karawang, Garut, Gresik, Semarang, Boyolali, Palu and Morowali “he explained.

For textile and textile product industry, the Minister of industry said this sector has an important role in contributing to foreign exchange revenue and as a national clothing provider. This Labor intensive industry has absorbed workers 10.6% of the total manufacturing industry labor force. However, the market share of the textile & textile product industry in the world is only about 1.8%

“Therefore, it should be pursued to be upgraded to a better position, considering that the national textile industry has an advantage, namely complete structure of the industry from upstream to downstream, ̋ ha said. Meanwhile, domestic investment (PMDN) in the textile industry until the first quarter of 2015 has reached IDR 455.1 billion or higher than the same period in the previous year at IDR 362.8 billion. As Foreign Investment (PMA) in the textile industry, the investment value has reached USD 63 million.

In addition to its commitment to continue to investment in Indonesia, Minister of Industry said that said that the company’s strategic steps should be followed by other industries, namely the strengthening of cooperation with Asian countries, even European and American countries in order to complement the depth of the depth of the structure of national industry.

In addition, his party also said that the said the diversification of export markets should be developed, in order to boost export growth significantly. At the end of his speech, Minister of industry expects that the company has conducted expansion by establishing PT Eco Smart Garment, continues to improve the performance of the industry, and contributes to the welfare of the community through local employment.

According to the Vice CEO of pan Brothers, Anne Petricia Sutanto, in plant to build another three garment factories in Central Java bringing a total of seven plants, with a total investment of USD 60 million or around IDR 810 billion. ̋We are also targeting to the upstream textile industry that produces fabrics made from polyester and nylon, if we found suitable partner, ̋ said Anne. The company requires expansion to further develop the product. If this can be realized, it will increase added value and reduce the use of foreign exchange revenue which was previous used for raw material imports.

According to member of Commission VI of the House of Representatives, ending Srikandi Handayani, who was also present on this visit, the garment industry which is expanding to the urbanization and boots economic potential in the regions, ̋ he said. (E)

Business New - September 2, 2015

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