Page 20 - May-June-2017

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Indonesia’s textile export

reached $2B

In the first two months of 2017, the Indonesia’s textile and textile product (TTP) export have touched United
States (US) $2 billion. The number is 3% more than what it was in the last year. According to the Minister of
Industry Airlangga Hartarto, "The TTP industry, which is also an export-oriented labor-intensive sector, can be a
social safety net because it employs a lot of workforce, up to now, and estimated at three million workers."

The minster also noted that the TTP industry’s investment value in 2016 reached IDR7.54 trillion, with a signifi-
cant foreign exchange gain from the export value of $11.87 billion, as well as employing as much as 17.03% of
the total workforce in the manufacturing industry. According to Airlangga, during the last three years the
national textile industry has experienced a contraction in growth, and one of the major driving sources for it is
new investments and expansions of the factories with an aim to increase the production capacity.

"For that, we express our appreciation to Sritex for increasing its investment by IDR2.6 trillion to bolster produc-
tion capacity in spinning mills and finishing, which will absorb the new workforce of 3,500 workers," he
explained. This act is considered as a healthy measure with a positive impact on the tax revenue of the state
and will also help to meet the domestic needs of raw material.

Facilitation approved for foreign

investors in 7 SEZs

The board of investments has given an official statement that the seven Special Economic Zones (SEZs) is
approved by the government for facilitating and attracting the investors through one window operation. Sindh
and Punjab will have three each while one will be in Khyber Paktunkwa.

The more appreciated or prioritized SEZs would also be established in KPK, Sindh, Punjab, Northern Area,
Balochistan and Federally Administrated Tribal Areas. The nine prioritized industrial zone proposed for the
high tech industry that is mean to boost the export and employment opportunities to the nationals.

In order to increase the direct investments in Pakistan, the Pakistani government will be holding road shows in
Italy, China, United Kingdom, United States and Singapore in addition to all major economies of the world.
With the new work plan, the BIO will hold road shows in collaboration to the chamber of commerce and
industries and APTMA, to focus on the steel and textile industry.