JAKARTA: The government’s plan to set up a new state-owned textile firm has raised questions among business representatives over how it might help the industry, with warnings that heavy-handed intervention risks weakening private investment and job creation in one of the country’s most laboUr-intensive sectors.
Redma Gita Wirawasta, chairman of the Indonesian Fiber and Filament Yarn Producers Association, said on Tuesday (Jan 20) that industry players were awaiting details on the announced deployment of US$6 billion, particularly following government signals that the proposed state-owned enterprise (SOE) would focus on aiding bankrupt textile firm PT Sri Rejeki Isman, better known as Sritex.
