Good news came to Indonesia. This is because there has been news that a factory from Vietnam is planning to enter Indonesia. The factory is planned to build a factory in Central Java. In fact, currently, textile factories in the country are gasping for air due to the drop in exports. Following the slowdown in demand in main export destination markets, such as the United States and Europe. Similar conditions are also being experienced by the textile industry in Vietnam, triggering a storm of layoffs in that country. Associate Director Industrial & Logistics Services Colliers Indonesia Freddy Hidayat said that one of his clients had plans to build a factory.
They, he said, had the reason to move to RI because the wages and other cost components in Vietnam were already relatively high.
"For the garment industry, we know several clients, the information from them is that currently in Vietnam in terms of raw material prices and salaries, Indonesia is still quite competitive, especially the development area in Central Java (Central Java)," he said in a press conference, Wednesday (4 /1/2023).
As is known, city and district minimum wages in Central Java are one of the lowest in Indonesia. For example, for industrial development areas such as Brebes Regency, it is only 2,018,836.92, then Batang Regency, the UMK 2023 is Rp. 2,282,025.72.
"Moreover, Indonesia is developing a new industrial area in Batang and maybe that will be an incentive for the garment industry to return to Indonesia," said Freddy.
However, he was reluctant to detail the number of companies that would enter because it was still in the planning phase.
"For how many companies I can't say yet because this is all still in their plans, maybe that's all," said Freddy.
On the other hand, President Joko Widodo (Jokowi) was even annoyed because Indonesia could not compete with neighboring countries in attracting investment.
Many Chinese companies that are expanding into Southeast Asia have chosen to move to Asean countries, and most of them are Vietnam. Now, there are Vietnamese manufacturers who are interested in trying to enter production in RI.
