Austrian Rayon Fiber Company Invests IDR 1.5 Trillion in RI, Will Absorb 1,500 Workers

Plt. Director General of Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry, Taufiek Bawazier. Photo: Doc. Ministry of Industry

JAKARTA - The Ministry of Industry (Kemenperin) appreciates the steps taken by PT South Pacific Viscose (SPV) which has invested investments worth 100 million US dollars or around IDR 1.5 trillion.

PT SPV itself is the largest producer of rayon fiber in Indonesia, which is a subsidiary of the Lenzing Group from Austria.

This investment is used to carry out technological transformation efforts with the aim of product differentiation and implementing sustainability through the development of a more environmentally friendly viscose rayon product line, namely the Lenzing Ecovero product.

Plt. Director General of the Chemical, Pharmaceutical and Textile Industry (IKFT) of the Ministry of Industry, Taufiek Bawazier, said that through this additional investment, the total employment would reach 1,500 people.

"The launch of the Lenzing Ecovero product could be an example and breakthrough for other companies. Apart from carrying out transformation, it also helps increase international market absorption. In fact, this includes creating innovation, because innovation is the key to being more successful and competitive," said Taufiek in a written statement received by VOI, Saturday, September 23.

Taufiek said that Lenzing Ecovero products also open world horizons, as products from Indonesia are in demand by the global market. In addition, this is the first product in Southeast Asia to receive EU Ecolabel rayon certification because it comes from sustainable wood and pulp,

Not only that, this product also meets high environmental standards with 50 percent lower carbon dioxide emissions and water impact throughout its life cycle, from raw material extraction, production, and distribution, to disposal.

"This is a good value for the national textile industry. So, now the momentum to reverse the pressure of the global impact is becoming more optimistic," he said.

The development of Lenzing Ecovero is proof of our joint commitment to controlling exhaust gas emissions in the industrial sector in the DKI Jakarta, West Java, and Banten provinces, as well as implementing the 2060 Net Zero Emission Roadmap.

Apart from that, it is in line with the government program in the National Industrial Development Master Plan and the Making Indonesia 4.0 road map in increasing synthetic fiber production capabilities and building an upstream functional clothing ecosystem as well as strategic initiatives to accommodate sustainability standards.

Meanwhile, President Director of PT South Pacific Viscose Sri Aditia said that his party is committed to transforming into an environmentally friendly company through the products it produces.

"Lenzing Ecovero is an environmentally friendly product and is a better choice for consumers in the textile industry," he said.