Chinese garment factory in Indonesia could create 108,000 jobs: Minister

JAKARTA: Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan claimed that a new Chinese garment factory in the country could absorb up to 108,000 workers, and he expects the company to realise its investment soon.

The senior minister said that the company would build its factory in West Java, close to Chinese carmaker BYD’s manufacturing facility in Subang.

The garment producer, he said, would also set up another factory in Sukoharjo, Central Java.

Luhut said he is confident with the infrastructure that the country could offer to its Chinese investors, including Kertajati International Airport, which is a one-hour drive from Subang.

“I said okay. I called the agrarian and spatial planning minister to see if he could deal with the land status, and he said ‘Yes we can. It will be done by next month’.

We’ll see,” Luhut said on Thursday (June 20), as quoted from Kumparan.

The local textile industry has been struggling to stay afloat amid falling demand from foreign buyers.

Last year, industry players voiced concerns over declining exports and Indonesia, like many countries, struggled to find new markets.

Many exporting countries ended up targeting Indonesia as an alternative market amid the slowdown that has struck the majority of Western markets like the United States and Europe.

The Indonesian Textile Association (API) said in mid-June that there had been over 10,800 layoffs from between 20 and 30 factories that ceased operations in the first five months of this year, as quoted from Bisnis.

This continued layoffs last year that impacted 7,200 workers.

Seperately, labour associations reported that the figure may have risen to over 13,000 this June, as quoted from Kompas, and around 10,000 workers have received compensation from companies that previously employed them.

Luhut went on to say that more investment is a necessary step to boost export-oriented industries in the country so that the economy can grow at a pace of between 6.5 and 7 per cent per year.

“What is important now is that these government officials are responsive to investors and that all investments are export-oriented,” Luhut said, adding that it is important to give export-oriented investors priority.

The Industry Ministry has blamed the dumping of producing countries for the slowed domestic textile industry, according to a statement on Friday.

Industry Minister Agus Gumiwang called on the relevant ministries to make moves to mitigate excessive shipments caused by dumping practices. This includes anti-dumping policy measures and imposing import safeguards. - The Jakarta Post/ANN

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Indonesia , China , garment , factory , labour , Luhut


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