Chinese firms to set up textile units in Indonesia (Indonesia)

Eager to set up their manufacturing units in the country, thirteen Chinese textile companies have sent their representatives to the Southeast Asian country of Indonesia to find suitable locations.

The Chinese textile firms, including the well-known Texhong Textile Group Ltd., are seeking suitable sites to establish their manufacturing units in Indonesia, Jiang Hui, Vice-Chairman of the China Chamber of Commerce for Import and Export of Textiles (CCCT), said.

The products produced in the Indonesian factories would be meant for export to destinations outside Indonesia, Mr. Hui said.

The Chinese textile companies have narrowed down to the Central Java region for building their units, Mr. Mintarjo Halim, Vice-Chairman of Indonesian Textile Association (API), said.

According to him, Boyolali and Surakarta in the Central Java province are among the places short-listed by the Chinese firms for establishing their units. These places are being preferred by the Chinese entrepreneurs in view of the availability of human resources and adequate infrastructure.

The API had initially suggested that Chinese firms should invest in Indonesian provinces other than Java, but the idea was turned down as other provinces still lack adequate infrastructure.

The region of West Java was also not acceptable to the Chinese textile companies for building their plants because of the recent labour unrest in the province.