Indonesia’s Textile Industry Gains Interest from Taiwanese Investors as Government Strengthens Global Partnerships

Jakarta, INTI - Amid rising global challenges, Indonesia continues to strengthen its appeal as an investment hub for the textile industry. With investors actively expressing interest, the Indonesian government remains committed to enhancing international cooperation and supporting the nation’s economy. A recent visit from the Taiwan Textile Federation underscored Indonesia's growing allure for investors seeking stable and sustainable markets.

Following a meeting on November 1 with representatives from the Taiwan Textile Federation and the Indonesian Textile Association (API), Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that Taiwanese textile investors were eager to invest more in Indonesia.

“Several companies within the Taiwan Textile Federation have already invested in Indonesia, and more are looking to expand,” said Minister Airlangga after the meeting, which covered important topics such as factory locations, ESG compliance, green energy, and the overall market outlook for Indonesia's textile industry.

Johnny Chen, a representative from Formosa Taiwan, shared insights into the promising future of the textile sector and emphasized his company’s intention to establish a larger footprint in Indonesia. This interest comes as the Indonesian government steps up efforts to support foreign investments in the textile industry, which is recognized for its growth potential and export orientation.

In his discussions with Taiwanese industry leaders, Minister Airlangga highlighted the significance of integrating local textile producers into the supply chain of foreign investors. He also encouraged API to play a proactive role in facilitating this integration, which is expected to yield benefits for both local businesses and foreign investors.

The meeting also addressed international trade agreements that could boost the competitiveness of Indonesia's textile exports. These include the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA). Minister Airlangga noted that political instability in Bangladesh and rising global protectionism make Indonesia a preferred investment location for textile firms targeting global markets.

“With IEU-CEPA and CPTPP, we gain access to markets with zero import tariffs, which is a significant advantage for Indonesia’s textile industry,” he noted.

The expansion of Taiwanese businesses in Indonesia, Minister Airlangga explained, also reflects Indonesia’s advantages in the realm of sustainable energy. The Indonesian textile sector is increasingly oriented toward environmentally responsible practices, driven by demand for ESG compliance from high-end markets. Indonesia’s renewable energy resources—ranging from natural gas and hydropower to floating solar arrays in West Java—are instrumental in supporting textile factories focused on sustainability.

“This high-end industry demands ESG compliance, including green energy. With Indonesia’s renewable resources, we are well-positioned to meet these requirements,” he concluded.

Present with Minister Airlangga were Ali Murtopo Simbolon, Deputy for Trade and Industry Coordination, and Haryo Limanseto, spokesperson for the Ministry.