PT Xinhai Knitting Indonesia and H&M disbursed a budget of more than 40 million US dollars or around Rp. 648.4 billion for the construction of a factory in Brebes, Central Java.
The company plans to build a textile factory and textile product (TPT) on an area of 8 hectares and is projected to absorb up to 8,000 workers.
The Ministry of Industry (Kemenperin) assesses that the investment in the TPT sector is a strategic step that will strengthen competitiveness in the midst of uncertain global economic conditions.
"This not only marks the start of physical development, but also the beginning of long-term cooperation which we hope will provide tangible benefits for investors, the government and local communities," said Deputy Minister of Industry (Wamenperin) Faisol Riza during the laying of the first stone of PT Xinhai Knitting Indonesia in Brebes, Central Java, recently.
According to Faisol, PT Xinhai Knitting Indonesia's investment reflects a strong trust in the Indonesian nation. "That Indonesia is not only able to attract investment, but also has great potential to increase the competitiveness of the TPT industrial sector in the global market," he said.
Moreover, the TPT industry is one of the priority sectors in the roadmap for national industrial development. This sector is also the key to spurring Indonesia's economic growth. This can be seen from the performance in the first quarter of 2025, where the TPT industrial sector recorded positive growth of 4.64 percent.
Meanwhile, from the export side, for the period January to April 2025, the TPT industry recorded a value of 3.38 billion US dollars, an increase of 3.57 percent compared to the same period the previous year.
Currently, the TPT sector absorbs more than 3.76 million workers or about 19.18 percent of the total workforce in the national manufacturing sector.
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"The production plan is scheduled to start in July 2026. It is hoped that it will make a major contribution to job creation, increase local economic activity and support industrial transformation towards sustainability," said Faisol.
"Moreover, this factory is designed to use solar panels and wastewater treatment according to industry green standards," he added.
Meanwhile, Director of PT Xinhai Knitting Indonesia Huang Lu Yu said, choosing Indonesia as an investment location because he saw the great potential offered.
"As a global textile and clothing investor, our group has a large-scale sales clothing production base in Nantong, China, and Yangon, Myanmar, and has long provided high-quality services for international brands, such as H&M, our business partners," he said.
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