Chinese textile companies invest $40 million in Indonesia to build factories

The investor, Chinese textile company PT Xinhai Knitting, will build a new 8-hectare textile factory in Brebes County in partnership with Swedish fast-fashion brand H&M.The investment amounted to US$40 million, or 651.8 billion rupiah. Brebes district is not only a martin printing center in the ASEAN region, but also has abundant labor resources and friendly local people, which are factors that prompted the company to choose to invest here. The factory will become a world-class knitwear production base, mainly supplying knitwear to H&M. Production is scheduled to begin in July 2026, and PT Xinhai Knitting's current annual production capacity is 25 million pieces. The factory will be the new production center for the company in Southeast Asia, which already has factories in Guangdong (China) and Yangon (Myanmar). In line with the green development concept, the factory will build a solar power generation system, a rainwater collection system, reuse of wastewater for water recycling, and use ofbiomassReduced carbon emissions. All wastewater and exhaust emissions from the plant will comply with Indonesian national standards to protect the natural environment and the environmental quality of Java. Comprehensive training will also be provided to employees, including the development of professional skills, leadership and management capabilities, and it is expected to employ 8,000 workers, contributing to local economic and social development. The groundbreaking ceremony was attended by the Deputy Minister of Industry, who said that the factory will be integrated into H&M's global supply chain, and that its high standards of sustainability are in line with the direction of the country's industrial policy, and that the government will continue to promote a favorable business environment that fosters cooperation between investors, local governments and vocational education institutions.