Special desk launched to solve problem faced to invest in textile sector

The Investment Coordinating Board (BKPM) having received reports that 13 textile companies face problems, eight of which plan to reduce production and five others plan to stop their businesses decided to establish a special desk dedicated to solving problems faced by those who want to invest in textiles and footwear.

The special desk was launched on Friday, it is part of BKPM’s effort to keep textile investments competitive so that there are a large number of jobs. This special desk is intended to help investors who are facing problems, so that layoffs can be prevented.

According to BKPM chief Franky Sibarani, investors in both sectors who have financial problems are expected to come to the special desk, so that they could secure their business and continuously employ their workers.

BKPM’s deputy director for investment monitoring and realization Azhar Lubis added that his office would follow up the report from the help desk and would help investors solve their problems. Some of the problems that hinder the realization of the investment are the existence of interlocking regulations.

Although there are reports about the problems faced by the textile industry due to the economic slowdown, BKPM said that the investment in this sector continues to rise. It recorded positive growth on textile investment realization in the first semester of 2015 by 58 percent worth Rp 3.88 trillion (US$290.52 million) compared to the first part of 2014.

Textile sub-sector investment also recorded positive growth. The textile fiber processing industry grew 213 percent to Rp 2.4 trillion, the weaving textile industry grew 613 percent to Rp 163 billion, the clothing industry grew 16 percent to Rp 941 billion and the clothing accessories industry grew 563 percent to Rp 216 billion.

The establishment of special desk is expected to resolve the investment anomalies that occur particularly in the textile sector.