The Investment Coordinating Board inaugurates the expansion of the PT Indorama Synthetics factory located in Purwakarta Regency, West Java. The investment value of this factory expansion is estimated at IDR 510 billion.
The expansion is intended to accommodate the production of yarns from cotton, polyester, nylon, acrylic, spandex, rayon, and blends.
BKPM Head Bahlil Lahadalia said the government will continue to ensure that investment continues when the factory expansion is inaugurated.
"Our presence is a form of government concern in ensuring that even in the era of the Covid-19 pandemic, industries will continue to run. Especially for Indorama, he is indeed carrying out an expansion program for his industry because they already dominate the world market, ”said Bahlil.
Furthermore, he explained, the expansion of investment is also expected to have an impact on the communities around the location. Because, the same investment also does not escape the fiscal incentives by the government.
"They submitted a fiscal incentive in the form of a tax allowance and I have given it. Our presence is also to ensure that it (positive impact) runs, ”said Bahlil.
The Head of BKPM also appreciates Indorama, a company that can be used as a concrete example in the framework of how to ensure environmental sustainability, vocational activities for the community, workforce absorption is going well in accordance with government programs.
BKPM noted, throughout 2020, in general, investment in the textile industry was contributed by domestic investment of IDR 2.103 trillion with projects reaching 1,350 throughout Indonesia. Meanwhile, foreign investment in the same sector managed to reach US $ 279.8 million with 1,782 projects in Indonesia.
The contribution of both foreign and domestic investment has made the textile industry sector ranked 17th in the highest business fields in the country.
On the same occasion, President Director of PT Indorama Synthetics Saurabh Mishra expressed his appreciation for the support that has been given by the government, especially BKPM.
"I would like to thank the Head of BKPM who has taken the time to be here despite the busyness involved. We feel motivated and feel happy because we have the support from the government, ”explained Mishra.
Additional information, PT Indorama Synthetics was founded in 1975 and started commercial production in 1976. Indorama Synthetics is a cotton spinning factory in Purwakarta which is continuously diversifying, expanding the spun yarn business and increasing production of polyester manufacturing.
Polyester is the raw material used for everyday clothing, from t-shirts, shirts, coats, and so on. Apart from being used for clothing, polyester is also commonly used to support the production of furniture, the automotive industry, and household utensils.
PT Indorama Synthetics is one of the largest exporters in Indonesia to North America, Europe, South America, Asia, Australia and the Middle East.