The textile and textile product (TPT) industry in Indonesia saw a significant increase in investment, reaching IDR 4.63 trillion in the first quarter of 2023, an 89.41% rise compared to the same period the previous year. This surge in investment, primarily driven by domestic investments, occurred amidst sluggish export orders. The improved demand for textile products in the domestic market has led local investors to respond quickly, resulting in increased investment. Although foreign investment has declined, it has had minimal impact on the local TPT industry, which is primarily export-oriented and relies on foreign investments. The industry has taken advantage of the slowdown in export orders to conduct maintenance activities and invest in machinery and spare parts.
The Ministry of Industry aims to boost the TPT industry's performance by implementing a machine restructuring program, encouraging the adoption of modern, efficient, and environmentally friendly equipment. This program has proved successful in enhancing productivity, efficiency, and product quality. Despite the challenges posed by the global crisis, the TPT industry in 2022 demonstrated positive results, with textile exports reaching USD 13.83 billion and providing employment for 3.65 million individuals. The program will continue in 2023, targeting the involvement of 13 companies and allocating a budget of IDR 4.7 billion. It offers reimbursements of 10% for imported machinery and equipment and 25% for domestically produced machinery and equipment.
