Airlangga: Textile industry is not a 'sunset industry', expansion is possible

Jakarta (ANTARA) - The Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the government is encouraging the textile and textile products (TPT) industry sector to undertake reinvestment and increase working capital.

Following a limited meeting at the Presidential Palace Complex in Jakarta on Tuesday, Airlangga noted that President Prabowo Subianto emphasised that the TPT industry does not fall into the category of a ‘sunset industry’ or an industry deemed to be in decline.

“The President conveyed earlier that the textile industry is not categorised as a sunset industry, which can therefore encourage reinvestment as well as the addition of working capital,” said Airlangga.

Airlangga noted that the TPT industry is one of the strategic sectors due to its labour-intensive nature. Currently, the sector employs approximately 4 million workers and contributes about 0.97 per cent to Indonesia’s Gross Domestic Product (GDP).

According to him, the utilisation of textile factories is currently around 75 per cent. This condition indicates that there is still room for the industry to increase production and undertake expansion.

“The utilisation of textile factories is still around 75 per cent, so there is still room to carry out expansion,” he said.

Airlangga added that strengthening the TPT industry is necessary because the sector makes a significant contribution to the economy and provides substantial employment absorption.