Strengthening Economic Cooperation Amid Global Challenges: Indonesia Continues to Attract Textile Industry Investment

Jakarta, INTI - In the midst of global challenges, the Indonesian government is intensifying efforts to strengthen international economic cooperation, aiming to support national economic growth. Indonesia remains a compelling and trusted destination for investors, who continue to express interest in various sectors, including the textile industry. Recently, the Taiwan Textile Association announced its intent to invest in Indonesia, adding to a wave of international interest.

"Representatives from the Taiwan Textile Federation have expressed their desire to invest in Indonesia, and several of their companies are already operating here," stated Airlangga Hartarto, the Coordinating Minister for Economic Affairs, following a meeting with the Taiwan Textile Federation and the Indonesian Textile Association (API) at the Ministry's office on Friday, November 1.

The meeting addressed key aspects such as industrial location, Environmental, Social, and Governance (ESG) compliance, green energy for sustainable operations, and future perspectives for the textile industry, both domestically and globally. Formosa Taiwan representative Johnny Chen discussed the promising outlook for the textile industry and emphasized his organization’s strong interest in expanding investment in Indonesia.

Minister Airlangga welcomed the enthusiasm from Taiwanese investors and encouraged collaboration with the government to increase investment in Indonesia's textile sector. He also urged API to participate in efforts to attract more foreign investment and facilitate the involvement of local textile producers in the supply chain of Taiwanese textile companies operating in Indonesia.

The meeting also highlighted discussions on key international agreements that influence the textile industry. These include the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), both of which could enhance Indonesia’s competitive edge in the global textile market. Political instability in Bangladesh and the rise of global protectionism have further boosted Indonesia's appeal as a stable, export-oriented textile manufacturing hub.

“With IEU-CEPA and CPTPP in place, we will gain market access with zero import tariffs,” Airlangga explained, emphasizing the benefits of these agreements for the textile industry.

Minister Airlangga also pointed out that many Taiwanese businesses in Indonesia are expanding. Indonesia's competitive edge extends beyond its strong polyester and rayon-based textile industry to include environmentally friendly energy sources that support the growth of sustainable textile factories.

"High-end textile industries today demand ESG compliance, which includes green energy. Indonesia can provide renewable energy sources, including gas, hydropower, and floating solar power—particularly in West Java, where these resources are readily available," he added.

Accompanying Minister Airlangga at the meeting were Ali Murtopo Simbolon, Deputy for Trade and Industry Coordination at the Coordinating Ministry for Economic Affairs, and Haryo Limanseto, the Ministry’s spokesperson.