USD 60 Million Textile Investment Enters Subang, Absorbing 3,800 Workers
Liputan6.com, Jakarta - Investment in the textile sector is flowing back into Indonesia. Three integrated textile companies have officially begun construction of a vertical manufacturing plant in Subang Smartpolitan, West Java, with a total investment value of USD 60 million.
This project capitalises on the momentum of the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA), which opens up broader export opportunities to the European market through a zero per cent tariff scheme.
The investment encompasses three main entities: PT Binkova Textiles Indonesia, focusing on dyeing and finishing processes; PT Dafei Textile Indonesia for fabric production (weaving and knitting); and PT Serendipity Fashion Indonesia as a garment manufacturer.
Director of PT Binkova Textiles Indonesia, Sun Jianjun, stated that the construction of this facility is a strategy to strengthen global competitiveness.
“Our decision to build a vertical manufacturing facility in Indonesia is a strategic step to reinforce our position as a competitive global supplier,” he explained, as quoted on Monday (27/4/2026).
He continued that 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.
With the vertical manufacturing concept, the entire production process—from raw materials to finished products—is carried out in one area. This model is expected to increase efficiency and strengthen the competitiveness of the national textile industry.
In addition, the project is estimated to absorb around 3,000 to 3,800 workers, while also driving regional economic growth.
Economic Impact
This step is taken because Indonesia is considered to have a strategic position as an investment destination in the textile and garment sector. The three companies are partners of the global fashion brand H&M.
The facility is targeted for completion by the end of 2026 and will immediately operate at full capacity to meet global market needs.
The presence of this vertical supply chain also enables compliance with the two-stage process rule in IEU-CEPA, allowing Indonesian textile products to enter the European market with zero per cent tariffs.
Chief Commercial Officer of Subang Smartpolitan, Abednego Purnomo, stated that this investment will have a broad economic impact, not only for the industry but also for the surrounding community.
“We are very proud to be the home of this major investment. The entry of vertical manufacturing encompassing Tier 1 to Tier 2 proves that the ecosystem in Subang Smartpolitan can meet investors’ needs for logistics cost efficiency and strict ESG standards,” he said.
Infrastructure Support
He added that this investment also has the potential to create a multiplier effect, including opening up job opportunities in supporting sectors such as logistics, catering, and other services.
Support also comes from the Ministry of Investment and Upstream Industry (BKPM). Director of Investment Promotion for ASEAN, Australia, New Zealand, and the Pacific regions, Saribua Siahaan, hopes that this investment can drive national economic growth.
Meanwhile, H&M representative, Budiasti Wulansari, reaffirmed the company’s commitment to continued development with Indonesia through increased production capacity and sustainability standards.
With infrastructure support such as the Cipali Toll Road and proximity to Patimban Port, Subang Smartpolitan is considered a strategic location to strengthen Indonesia’s position in the global fashion industry supply chain.