The Vice Minister of Industry recently announced that Chinese-invested company PT Xinhai Knitting Indonesia and H&M are investing IDR 649 billion (approximately USD 40 million) in Central Java to build a textile and textile products (TPT) factory. The factory covers an area of 8 hectares, is expected to create 8,000 jobs, and production is scheduled to start in July 2026. It will utilize solar panels and a wastewater treatment system that meets green industry standards. The TPT industry is a priority sector for Indonesia's national industrial development and is crucial for economic growth: in the first quarter of 2025, the sector grew by 4.64%; from January to April 2025, exports reached USD 3.38 billion (approximately IDR 54 trillion), a year-on-year increase of 3.57%; and it employs 19.18% of Indonesia's manufacturing workforce (over 3.76 million people). This investment is seen as a sign of international confidence in the Indonesian market, helping to enhance the competitiveness of Indonesian products globally and address global economic uncertainties. The Ministry of Industry has launched five strategic policies to boost the competitiveness of the TPT industry, including using environmentally friendly raw materials and segregating the recycled textile market; improving efficiency in water, energy, and chemical use; strengthening circular economy practices; providing incentives for green industries; and implementing post-consumer textile recycling demonstration projects. The government will continue to optimize the business environment and promote cooperation among investors, local governments, and vocational education institutions to cultivate highly skilled industry talent. This factory is part of H&M's global supply chain, and its high sustainability standards align with Indonesia's vision of building a strong, inclusive, and environmentally friendly manufacturing sector.
The Vice Minister of Industry recently announced that Chinese-invested company PT Xinhai Knitting Indonesia and H&M are investing IDR 649 billion (approximately USD 40 million) in Central Java to build a textile and textile products (TPT) factory. The factory covers an area of 8 hectares, is expected to create 8,000 jobs, and production is scheduled to start in July 2026. It will utilize solar panels and a wastewater treatment system that meets green industry standards. The TPT industry is a priority sector for Indonesia's national industrial development and is crucial for economic growth: in the first quarter of 2025, the sector grew by 4.64%; from January to April 2025, exports reached USD 3.38 billion (approximately IDR 54 trillion), a year-on-year increase of 3.57%; and it employs 19.18% of Indonesia's manufacturing workforce (over 3.76 million people). This investment is seen as a sign of international confidence in the Indonesian market, helping to enhance the competitiveness of Indonesian products globally and address global economic uncertainties. The Ministry of Industry has launched five strategic policies to boost the competitiveness of the TPT industry, including using environmentally friendly raw materials and segregating the recycled textile market; improving efficiency in water, energy, and chemical use; strengthening circular economy practices; providing incentives for green industries; and implementing post-consumer textile recycling demonstration projects. The government will continue to optimize the business environment and promote cooperation among investors, local governments, and vocational education institutions to cultivate highly skilled industry talent. This factory is part of H&M's global supply chain, and its high sustainability standards align with Indonesia's vision of building a strong, inclusive, and environmentally friendly manufacturing sector.