Apparel One to invest $39mn to open second factory in Semarang

Apparel One, a subsidiary of Bina Busana Internusa, a Jakarta-based garments company controlled by tycoon T.P. Rachmat’s Triputra Group plans to invest Rp 490 billion ($39 million) in a second factory in Semarang, Central Java, this year.

The plant, which covers a 2.4 hectare-area, would increase Apparel One’s total production capacity to 21 million pieces of clothing, with an export value of $100 million per year, Apparel One Indonesia president director Lukman Widjaja said.

The factory will also employ 6,000 workers at the end of the year.

Apparel One’s factory expansion would also help make Indonesia the base for export-oriented products, or it will lose its customers to Thailand and Vietnam, Lukman said.

Azhar Lubis, the deputy director of investment monitoring and implementation at Investment Coordinating Board said that the country in order to kick start its slowing economy has been pushing for investment in labour intensives sectors to boost exports — just like the garment and textile industry.

The board, known as BKPM, remains optimistic that it will reach this year’s investment target of Rp 594.8 trillion ($45.1 billion), Azhar said.

Apparel One is the clothing manufacturer for brands like Esprit, Ralph Lauren, Mexx and Adidas.