A new industrial estate for garments is going to come up in Indonesia’s Boyolali Regency in the eastern part of Central Java province, reports The President Post.
The garment park is planned to be set up by the local government of Boyolali on an area of about 500 hectares. The administration has already acquired about 40 hectares of land for the purpose and the total area is likely to reach 100 hectares by the end of this year.
The government of Boyolali Regency has allocated Rp 100 billion for land acquisition. The construction for the first phase of the garment industrial estate on 300 hectare area is expected to begin in 2016 and it would take about 2 years for completion, according to Boyolali Regent Seno Samodro.
The Korea International Cooperation Agency (KOICA) has provided a grant of US$ 4.8 million for making the master plan and detailed engineering design for the project.
More than 85 companies, including many Korean companies, have already expressed their interest to open their garment factory in the proposed industrial estate.
Owing to ample availability of human resources, Boyolali is a good location for garment production, especially for exports, according to the Indonesia Investment Coordinating Board (BKPM).
Indonesia’s exports of non-knitted apparel and clothing accessories (under HS code 62) increased marginally by 1.78 percent to US$ 1.355 billion in the first four months of the current year (for which data is available), compared to exports of $1.332 billion made during the corresponding period of last year, as per the data from Statistics Indonesia.
Non-knitted garments and apparel accessories exports accounted for 2.82 percent share in Indonesia’s non-oil and gas exports during January-April 2014.