The textile industry will again make a jumbo investment this year. Large numbers of investors are made because industry players have secured several regulations that guarantee the certainty of the domestic market. Major investments will be made to produce rayon and polyester. "Upstream production will add an investment of IDR 12 trillion for the production of rayon and polyester," said the Director of the Textile, Leather and Footwear Industry at the Ministry of Industry, Elis Masitoh to Katadata, Tuesday (18/1). The Ministry of Industry (Kemenperin) noted that the utilization of the national textile industry reached 69.4% throughout 2021 with a production output of 6.92 million tons. Meanwhile, the entire production value of the textile industry last year reached IDR 1,496.68 trillion. The textile industry is an industry that produces garment raw materials, such as fiber, yarn, and fabric. Meanwhile, polyester and rayon are two types of fiber that are produced domestically. Secretary General of the Indonesian Filament Yarn and Fiber Producers Association (APSyFI) Redma Wirawasta said that at least nine manufacturers would invest in early 2022. However, Redma assessed that the investment was not due to an increase in demand throughout 2022. "Safeguard from the government (for products) yarn, fabrics and garments, continue with the Regulation of the Minister of Trade No. 12-2020, that makes (industrial players) confident for investment," said Redma, last week. According to him, the energy crisis and high shipping costs can be easily overcome by industry players from Panda Country. "The most important thing is the government's side," said Redma.
Previously, nine textile industries had invested IDR 10.5 trillion at the end of 2021. In detail, the investment value was IDR 2 trillion in Java Island and IDR 8.5 trillion in Riau Province. The nine TPT companies that invested, namely PT. Dhanar Mas Concern, PT. Embee Plumbon Textiles, PT. Kewalram Indonesia, and PT. Pan Brothers Tbk. Also, PT. Anggana Kurnia Putra, PT. Sipatex Putri Lestari, PT. Bandung Djaja Textile, PT. Sinar Para Taruna Textile and PT. Asia Pacific Region. "This proves that the textile industry is not a sunset industry, it has even become a sunrise industry," said Minister of Industry Agus Gumiwang Kartasasmita, last December. Realization of these investments includes the manufacture of fiber, yarn manufacture, fabric manufacture to the apparel industry. Agus said industrial development from this new investment will make it easier for the textile industry to get raw materials. Agus believes the textile industry in Indonesia will continue to grow in the future. In addition, the Ministry of Industry seeks to support an improvement in the investment climate with fiscal and non-fiscal incentives to minimize the impact of the Covid-19 pandemic and increase performance of the textile industry. The contribution of the textile industry to the GDP of the manufacturing sector was 6.08% in the third quarter of 2021. This growth experienced an improvement to 4.27% when compared to the second quarter of 2021 which was 0.48%. As for textile exports in the period January- October 2021 also experienced an increase as 19% to USD 10.52 billion (IDR 150 trillion). In addition, the investment value also increased by 12% to IDR 5.06 trillion.
