Regulatory barriers hinder investment in the Indonesian textile industry

As the association reports on its website, many investments in this sector are still stalled, including the investment plans of Tongkun Group, a polyester producer from China.

“We have long heard that Tongkun will invest in polyester raw materials, but so far this has not materialized,” said APSyFI CEO Redma G. Wirawasta.

According to the Indonesian Fiber and Yarn Producers Association, the Indonesian textile and textile products industry is struggling to attract investment, mainly due to unclear and inconsistent regulations. Industry Minister Agus Gumiwang Kartasasmita believes that the perception of the country’s textile sector as a dying industry must be overcome.

Redma believes that investors need long-term regulatory certainty to ensure the sustainable development of their businesses.

The country’s Industry Minister Agus Gumiwang Kartasasmita said the country’s fashion industry is projected to grow at an average of 4.26 percent annually by 2029, with a market value reaching $9.6 billion. Over 1.6 million people work in this sector.

The association noted that creative industry players in Indonesia should be able to take advantage of this opportunity to become hosts in their own country and capture the domestic market in the face of competition from imported products.

Kartasasmita said the perception of the country’s textile industry as a dying industry must be overcome.

In the first quarter of this year the export value of the domestic textile industry increased by 0.19%.

Fiber2Fashion Information Desk (DS)