The Indonesian government continues to strengthen international economic partnerships to support national economic growth. Despite global challenges, Indonesia remains an attractive destination for investors, particularly in the textile industry. Minister of Economic Affairs Airlangga Hartarto recently met with Taiwan Textile Federation representatives and the Indonesian Textile Association (API) to discuss potential investment. The Taiwan Textile Federation expressed interest in expanding investments in Indonesia, with some members already operating in the country. Topics covered included industry locations, ESG compliance, green energy to support industry operations, and the textile market outlook in both Indonesia and globally.
During the meeting, Formosa Taiwan representative Johnny Chen shared a promising outlook for the textile industry and highlighted plans to invest in Indonesia. Minister Airlangga welcomed the interest, urging API to collaborate with the government to further boost textile sector investment and integrate local producers into the supply chains of Taiwanese textile firms. The discussion also included the potential benefits of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), which enhance export opportunities by reducing entry costs. With growing political instability in Bangladesh and protectionist policies elsewhere, Indonesia’s political stability and support for green energy, particularly in West Java, are seen as competitive advantages for textile investors.
