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Indonesia to set up garment park at Boyolali

A new industrial estate for garments is going to come up in Boyolali, Indonesia. The garment park is being planned over 500 hectares area. Construction is expected to begin in 2016 and it would take about two years for completion. More than 85 companies, including many Korean companies, have already expressed their interest in setting up garment factories in the proposed industrial estate.

Owing to ample availability of human resources, Boyolali is considered to be a good location for garment production, especially for exports. Indonesia’s export of non-knitted apparel and clothing accessories increased marginally by 1.78 per cent in the first four months of the current year compared to the corresponding period of last year. Non-knitted garments and apparel accessories exports accounted for a 2.82 per cent share in Indonesia’s non-oil and gas exports during January to April 2014.

The textile and garment sector offers both challenges and opportunities as Indonesia looks to the sector to be a major engine of growth to 2030. One of the sector’s key strengths is the rare presence of both an upstream and a downstream industry. Some 60 per cent of manufactured garments are exported to international markets as various leading international apparel brands use Indonesia as a manufacturing base for their global exports.