The textile industry will again make a jumbo investment this year. Large numbers of investors are made because industry players have secured several regulations that guarantee the certainty of the domestic market. Major investments will be made to produce rayon and polyester. "Upstream production will increase investment by Rp 12 trillion for the production of rayon and polyester," said Director of the Textile, Leather and Footwear Industry at the Ministry of Industry, Elis Masitoh, Tuesday (18/1). The Ministry of Industry (Kemenperin) noted that the utilization of the national textile industry reached 69.4% throughout 2021 with a production output of 6.92 million tons. Meanwhile, the entire production value of the textile industry last year reached Rp 1,496.68 trillion.

The Textile Industry Starts Exploring Ahead of Ramadan The textile industry is an industry that produces garment raw materials, such as fiber, yarn, and fabric. Meanwhile, polyester and rayon are two types of fiber that are produced domestically.

Secretary General of the Indonesian Filament Yarn and Fiber Producers Association (APSyFI) Redma Wirawasta said that at least nine manufacturers would invest in early 2022.

However, Redma assessed that the investment was not caused by an increase in demand throughout 2022.

"Safeguard from the government (for products) of yarn, fabric and garment, continue with the Minister of Trade Regulation No. 12-2020, that makes (industrial players) confident for investment," said Redma, last week.

According to him, the energy crisis and high shipping costs can be easily overcome by industry players from Panda Country.

"The most important thing is the government's side," said Redma.

Previously, nine textile industries had invested Rp 10.5 trillion at the end of 2021. In detail, the investment value was Rp 2 trillion in Java Island and Rp 8.5 trillion in Riau Province.

The nine TPT companies that invested, namely PT. Dhanar Mas Concern, PT. Embee Plumbon Textiles, PT. Kewalram Indonesia, and PT. Pan Brothers Tbk.

Also, PT. Anggana Kurnia Putra, PT. Sipatex Putri Lestari, PT. Bandung Djaja Textile, PT. Sinar Para Taruna Textile and PT. Asia Pacific Region.

"This proves that the textile industry is not a sunset industry, it has even become a sunrise industry," said Industry Minister Agus Gumiwang Kartasasmita, late last December.

The realization of these investments includes the manufacture of fiber, yarn manufacture, fabric manufacture to the apparel industry.

Agus said industrial development from this new investment would make it easier for the textile industry to obtain raw materials.

Agus believes that the textile industry in Indonesia will continue to grow in the future.

In addition, the Ministry of Industry seeks to support the improvement of the investment climate with fiscal and non-fiscal incentives to minimize the impact of the Covid-19 pandemic and improve the performance of the textile industry.

The textile industry's contribution to the GDP of the manufacturing sector was 6.08% in the third quarter of 2021. This growth improved to 4.27% compared to 0.48% in the second quarter of 2021.

 Meanwhile, TPT exports in the January-October 2021 period also increased by 19% to US$ 10.52 billion (Rp 150 trillion).

In addition, the investment value also increased by 12% to Rp 5.06 trillion.