Jiangsu Lianfa Textile, listed on the Shenzhen Stock Exchange, plans to launch its factory next year with an investment of between 5 and 6 trillion rupiah ($350 million and $422 million). The factory, in Indonesia’s Central Java province, will produce yarn for shirt-making, reducing the cost of yarn imports by $1 billion for Indonesian shirtmakers and helping them produce final goods such as fabrics and shirts more speedily for the US market.

Textile exports contributed $13.8 billion last year, or about 2 per cent of Indonesia’s GDP. It created around 3 million new jobs. The country aims to grow its textiles exports this year to $15 billion for the US, Japanese and European markets.Among other things, companies in Indonesia must pay a high minimum wage and commit to high severance payments.