JAKARTA. The Investment Coordinating Board (BKPM) estimates that the investment needed to improve the textile industry in Indonesia, from upstream to downstream, may reach Rp 175 trillion.
Bahlil Lahadalia, Head of BKPM, explained that the total funds will be invested in seven years. This was stated after he held a meeting with the Indonesian Textile Association (API) and the Indonesian Fiber and Filament Yarn Makers Association (APSyFI) on Wednesday (11/12).
During the meeting, Lahadalia was asked to follow up on a meeting between President Joko Widodo and textile entrepreneurs several months ago. Lahadalia and the association discussed a number of problems faced by textile entrepreneurs in Indonesia today. Starting from the price of products that are not competitive, the entry of foreign products, and the relaxation of imports of textile production machinery.
"We know that lately, a lot of products from outside Indonesia have penetrated the market, so that they dominate the domestic market," Lahadalia said.
At the end of the meeting, Lahadalia asked the association to design a strategy map for the development of the Indonesian textile industry. This map will be a recommendation by BKPM to coordinate with other ministries or government agencies in Indonesia. (KR/AR)