The aim is to strengthen the industry amid external shocks like US tariffs and a surge in textile imports from China.
The company will be directly managed by Danantara, the country’s sovereign wealth fund, with an initial funding allocation of up to $6 billion, Hartarto said.
The investment will be on capital equipment procurement, adopting new technologies and export expansion initiatives.
The government targets raising textile exports from $4 billion now to $40 billion over the next decade, the minister was cited as saying by domestic media outlets.
The plan also includes deepening the domestic value chain, especially sub-domains that are relatively weaker.
Indonesian textile manufacturers have struggled to maintain market share at home and abroad as cheaper Chinese fabrics and garments continue to undercut their products.
Fibre2Fashion (DS)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
