TEMPO.CO, Jakarta - Minister of Industry Airlangga Hartarto hinted on China's investment that is set to invest up to Rp10 trillion in Indonesia’s textile industry this year. The investment will tend to be in the midstream developments such as textile spinning, weaving, dyeing, and printing.
The investment, he said, is also driven by the current trade war between China and the U.S. government. Recent trend suggests that manufacturing companies from China are interested in moving their production base to Indonesia in order to avoid high tariffs imposed by the U.S. government.
“Several textile and shoe-making industries are considering the move from China to Indonesia,” said Minister Airlangga in a written statement Tempo received on Thursday.
Other than investments in the textile industry, Minister Airlangga said that China has also established a new industrial area in Central Sulawesi that spent US$5 billion in the past five years, with US$4 billion export value generated from the area.