The Ministry of Industry (Kemenperin) claims that there has been an increase in investment in the textile and textile product (TPT) industrial sector, even though the industry is experiencing sluggish demand for exports, followed by various factory closures. The Director General of the Chemical, Pharmaceutical and Textile Industry (IKFT) of the Ministry of Industry Ignatius Warsito said that in the first quarter of 2023 the TPT sector was still being looked at by investors, indicating an increase in investment figures. Warsito said the increase in investment was dominated by investment from abroad or foreign investment (PMA).
"In the first quarter of 2023 textile investment actually increased more FDI," said Warsito, on Monday (12/6/2023).
The Diponegoro University Chemical Engineering alumnus said the increase in textile investment was due to different market needs. "Because market needs are different, that's what makes them move all the time, they can't stay still, if they stay still, they can also fall into suspended animation," added Warsito.
Looking at the investment data on the BKPM (Investment Coordinating Board) National Single Window for Investment (NSWI) website, FDI for the textile industry in the first quarter of 2023 has indeed crept up compared to the same period last year (Year on Year/YoY) or the previous quarter.
BPS's record is positive, but textile entrepreneurs admit that export orders have fallen for the textile and footwear industry. This is a row of factories laying off thousands of textile foreign workers in the first quarter of 2023, which was recorded at US$74.34 million or the equivalent of Rp.1.10 trillion (at an exchange rate of Rp.14. 892).
This figure increased by 84.13 percent from US$40.35 million in the same period last year.
Then when compared to the previous quarter, or quarter IV/2022, the FDI figure for the textile industry was also observed to have increased by 81.49 percent, from the previous US$40.96 million. Similar to FDI, domestic investment (PMDN) for this industry in the first quarter of 2023 recorded an increase from the same quarter the previous year which reached IDR 485.15 billion to IDR 257 trillion, an increase of 430.40 percent.
Likewise when compared to the PMDN of this sector in the previous quarter or quarter IV/2022 which amounted to IDR 1.19 trillion, an increase of 146.26 percent.
