Chinese firms invest 649 billion dong in textile factories

The Deputy Minister of Industry has announced that Chinese-owned PT Xinhai Knitting Indonesia and H&M have invested 649 billion rupiah (about $40 million) to build a textile and textile products (TPT) factory in Central Java.The 8-hectare plant is expected to create 8,000 jobs, with production scheduled to start in July 2026, and will feature solar panels and a wastewater treatment system that meets green industry standards. The textile and textile products (TPT) industry is a priority area for Indonesia's national industrial development and is critical to economic growth: the sector grew by 4.641 TP3T in Q1 2025; exports reached US$3.38 billion (about Rp 54 trillion) in January-April 2025, up 3.571 TP3T year-on-year; and it absorbed 19.181 TP3T of the nation's manufacturing labor force (over 3.76 million people). The investment is seen as the international community's trust in the Indonesian market, helping to enhance the competitiveness of Indonesian products in the global market and cope with global economic uncertainty. The Ministry of Industry has launched five strategic policies to enhance the competitiveness of the TPT industry, including the use of environmentally friendly raw materials and segmentation of the recycled textile market; improving efficiency in the use of water, energy, and chemicals; strengthening circular economy practices; providing incentives for the green industry; and implementing a demonstration project for post-consumer textile recycling. The government will continue to optimize the business environment and promote cooperation between investors, local governments and vocational education institutions to cultivate high-quality industrial talents. The factory is part of H&M's global supply chain and its high sustainability standards are in line with Indonesia's vision of a strong, inclusive and environmentally friendly manufacturing sector.