Secretary General of the Indonesian Filament Yarn and Fiber Association (APSyFI) Redma Gita Wirawasta revealed that investment in the textile and textile product (TPT) industry is still ongoing. Including, upstream, namely the fiber and yarn industry. "This year there is an additional investment in production capacity for 150 thousand tons of rayon fiber and 300 thousand tons of recycled filament yarn," said Redma (28/7/2022). With this investment, he continued, by the end of 2022 the national capacity for the rayon industry will be 1 million tons, while the filament yarn will be 1.15 million tons.
The filament yarn factory, he said, supplies the branded textile product industry in the European Union.
"There, the campaign for the use of recycled products has become more widespread. This factory will reduce dependence on basic raw materials. As well as our commitment to preserving the environment towards green products, green industry, and a circular economy," he said.
So far, said Redma, the upstream textile industry is still facing the problem of limited raw materials. Where, he added, the current production capacity of raw materials is around 1.5 million tons for purified terephthalic acid (PTA).
Not to mention, he added, fluctuations in crude oil prices are very influential on this segment.
"So, if there is an additional polyester industry in the country, there will be a shortage of PTA. Meanwhile, the price of raw materials is still in the expensive category. PTA is around US$900/ton, normally below US$700," concluded Redma.
The Ministry of Industry (Kemenperin) noted that in the first quarter of 2022, the textile industry contributed 6.33% of the total GDP of the non-oil and gas processing industry sector. The total national exports in 2021 contributed 5.67% and during January-May 2022 contributed 5.33%. Investment growth in this sector was recorded at Rp6.5 trillion in 2021 and Rp2.4 trillion in the first quarter of 2022.
In December 2021, Minister of Industry Agus Gumiwang Kartasasmita inaugurated the expansion of 9 textile industries in Bandung Regency, West Java. The investment realization includes the fiber manufacturing industry, yarn manufacturing, fabric manufacturing, to the apparel industry. This is in line with the import substitution target initiated by the Ministry of Industry.