Danantara Wants to Form a Rp101 Trillion Textile BUMN, Job Creation is the Main Consideration

JAKARTA - Danantara Indonesia CEO Rosan Roeslani spoke about the plan to establish a State-Owned Enterprise (BUMN) specifically for the textile sector with an investment value of up to 6 billion US dollars, equivalent to around Rp. 101 trillion.

Rosan said that every Danantara investment plan, whether in the textile sector or other fields, must undergo in-depth studies and feasibility studies, including measuring the impact on labor.

"We are open to accepting investments whose returns may be lower than our parameters if the creation of employment is higher. Maybe textiles are one of those that in terms of achieving employment is very large," said Rosan to reporters in Jakarta, Thursday, January 15.

According to Rosan, the government still sees opportunities for the textile industry even though many companies in this sector are bearing a heavy burden.

"We see the potential that exists, especially if it is included in distressed assets," he said.

The Minister of Investment and Industrialization/Head of BKPM said the government opened the opportunity for restructuring and rehabilitation for assets that could still be recovered.

However, Rosan did not specify whether this step was directly related to the rescue and restructuring process of PT Sri Rejeki Isman (Sritex) which had been declared bankrupt.

"As long as we are confident that we can turn around the company and carry out restructuring to the maximum, why not," he added.

Rosan said that Danantara has also run a comprehensive corporate rehabilitation model, not only capital injection, but also structuring business structures to market certainty or offtakers.

Even so, Rosan admitted that he could not confirm the scheme for the formation of the textile company. "We are still looking at the options. Not yet (definitive)," said Rosan.