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'Foreign textile firms keen to invest in Central Java'
18
Oct '13
Foreign textile firms are keen to invest in Central Java province of Indonesia, Ramon Bangun, director of Textiles Industry and Miscellaneous Manufacturing Industries at the Ministry of Industry, said while visiting Garment Industry Human Resources Development Centre in Semarang, the capital and largest city in Central Java.
 
In addition to Vietnam, foreign companies engaged in manufacturing of textile and textile products have began relocating their factories to a number of areas in Indonesia, including the Central Java province, which is likely to absorb the labour force in large numbers, Mr. Bangun said, according to a Suara Merdeka report.
 
Investors from China and South Korea are keen to invest in setting up textile units in Central Java due to more conducive business and political climate and wages being at relatively affordable level, Mr. Bangun said.
 
According to Mr. Bangun, the advent of foreign investors would result in absorption of Central Javan labour force in large numbers, due to the labour-intensive nature of the textile and garment industry.
 
Central Java Governor Ganjar Pranowo said improved and easy access from Central Java region to highways, sea and air ports, would further drive the entry of foreign and domestic textile investors into the region.
 
The garment and textile industry is the largest foreign exchange earner for the province, and in June 2013, the province exported apparel worth US$ 169.25 million.
 
As per February 2013 data, the total labour force in Central Java was 16.91 million people, with 94.4 percent or 15.97 million people employed and the remaining 5.57 percent or 940,000 being unemployed.
 

Fibre2fashion News Desk - India


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