Three Integrated Textile Companies Begin Construction of Vertical Manufacturing Facilities in Subang Smartpolitan
Subang, 24 April 2026 – Taking advantage of the momentum from the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), three integrated textile companies have officially begun construction of a vertical manufacturing plant (involving a two-stage clothing production process) in Subang Smartpolitan, West Java.
The groundbreaking ceremony held on 23 April 2026 was attended by representatives from the central government, including the Ministry of Investment and Downstreaming Industries (BKPM), the National Economic Council, the Ministry of Industry, the Ministry of Foreign Affairs, and the Swedish Embassy to Indonesia; as well as officials and local government apparatus from Subang Regency. This milestone not only marks the start of the physical plant construction but also the development of a modern textile production ecosystem encompassing all manufacturing stages within a single area.
With a total estimated investment value of USD 60 million and the potential to absorb around 3,000–3,800 workers, this initiative includes three integrated operational entities: PT Binkova Textiles Indonesia, focusing on dyeing and finishing processes (also known as Tier 2); PT Dafei Textile Indonesia for weaving and knitting fabric production; and PT Serendipity Fashion Indonesia, a garment manufacturer (also referred to as Tier 1 in the textile and apparel industry).
This strategic step responds to Indonesia’s competitive position as an investment destination in the textile and apparel sector. The three companies, which are business partners of the global fashion brand H&M, have chosen Subang Smartpolitan to build a comprehensive vertical supply chain to meet the two-stage process requirements under the IEU-CEPA zero per cent tariff scheme. This is expected to significantly enhance the competitiveness of Indonesian product exports to the European market.
Mr Sun Jianjun, Director of PT Binkova Textiles Indonesia, stated: “Our decision to build vertical manufacturing facilities in Indonesia is a strategic step to strengthen our position as a competitive global supplier. The company is committed to bringing modern manufacturing technology to Subang Smartpolitan to ensure operational efficiency and product traceability in line with international sustainability standards and global trade requirements.”
The facility construction is targeted for completion by the end of 2026, followed by the start of full production operations thereafter. All production facilities will eventually produce various fashion products prioritised to meet global market needs, including for H&M as our business partner.
Abednego Purnomo, Chief Commercial Officer of Subang Smartpolitan, welcomed the investment and emphasised the importance of industrial integration within the area. “We are very proud to be the home of this major investment. The entry of vertical manufacturing covering Tier 1 to Tier 2 proves that the ecosystem in Subang Smartpolitan can meet investors’ needs for logistics cost efficiency and strict ESG standards. With strategic connectivity to the Cipali Toll Road and proximity to Patimban Port, we are confident that tenants can maximise global market opportunities.”
He added that this investment will bring a multiplier effect to the local economy. “The presence of this industry will not only absorb direct labour within the factories but also create three to four derivative jobs in supporting sectors, such as logistics services, catering, laundry, and others around the area.”
The same sentiment was echoed by Mr Saribua Siahaan, Director of ASEAN, Australia, New Zealand, and Pacific Investment Promotion at the Ministry of Investment and Downstreaming Industries (BKPM). “We greatly hope that the arrival of this new investment in Subang, besides the textile sector, can also help drive the regional economy, which will support Indonesia’s 8 per cent economic growth target in 2029.”
Support was also provided by Budiasti Wulansari, Environmental Sustainability & Public Affairs Lead at H&M Production Indonesia, who said: “H&M has been operating in Indonesia for more than two decades and has built strong collaborations with dozens of manufacturing companies across Java. The presence of vertical facilities from PT Binkova, PT Serendipity, and PT Dafei in Subang represents our commitment to continuing to grow together with Indonesia. The integration of the two-stage process not only provides an opportunity for Indonesia’s textile sector to increase competitiveness in the global market but also optimises costs and ensures sustainability standards aligned with global market directions.”
The selection of Subang Smartpolitan as the investment location is based on its integrated infrastructure supporting logistics efficiency and strategic connectivity, making it an ideal hub for export-oriented manufacturing. This investment is expected to serve as a driver of the local economy through significant job absorption in the Subang region, while increasing the added value of the domestic textile industry and strengthening Indonesia’s position as a key player in the global fashion supply chain.