Home / Knowledge / News / Textiles / Indonesia bets on labour-intensive firms to boost economy
Indonesia bets on labour-intensive firms to boost economy
07
Oct '15
As Indonesia fights a stubborn economic slowdown, President Joko Widodo has launched an investment programme to monitor 16 companies in the labour-intensive industry in an effort to increase employment and inject some optimism in the country.

During his speech at PT Adis Dimession Footwear which manufactures shoes for Nike, in Tangerang, the President stressed the significance of optimism despite the gloomy economic scenario and encouraged the 16 companies to remain upbeat, insisting that the economy can still be turned around.

Most of these 16 companies are involved in making apparel, garment and footwear and will work with the Investment Coordinating Board (BKPM) to ensure the employment of over 1.21 lakh workers over the next five years.

These companies have so far invested Rp 11.4 trillion ($789 million) as of September, of the total Rp 18.9 trillion investment estimated for the projects. Eleven of these are from South Korea, Taiwan, Japan and Singapore. Together, they are expected to bring around $1.3 million in export earnings.

BKPM chairman Franky Sibarani stressed that labour-intensive industry plays a big role in creating multiplier effects for the country's economy and ushers in development in areas surrounding their factories.

In Indonesia, food and beverages, tobacco, textiles and garments, leather and leather products, footwear, toys and furniture come under labour-intensive industry. Investments in this sector had moved upwards between 20 to 40 per cent during 2010 to 2014 and accounted for 15 per cent of total domestic and foreign direct investment.

Unfortunately, despite the industrial growth there was no substantial labour absorption. Mass lay-offs totalling more than one lakh workers last year set alarm bells ringing among policy makers. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Apparel/Garments | On 27th Jun 2017

Vietnam to build fashion, textile, trading centres

Vietnam's Ho Chi Minh City will build large centres for designing...

Textiles | On 27th Jun 2017

Barcelona’s Unitin develops recycled Indigo yarns

Unitin, a trademark of Industrias Morera SA and a leading textile...

Information Technology | On 27th Jun 2017

ThreadSol to bring fabric solutions to Thailand

ThreadSol, an enterprise material management provider for the sewn...

Interviews View All

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search