Indonesia’s biggest producer of textile raw materials Indorama Synthetics opened a $40 million spinning mill facility in Purwakarta, West Java says the country’s Investment Coordinating Board (BKPM). According to Franky Sibarani, Chairman, BKPM, Indorama’s expansion can support the government’s plan to reduce unemployment and improve the locals’ income in Purwakarta district, while also improving foreign exchange earnings from exports.
Purwakarta mill is Indorama’s ninth plant in the archipelago nation. The plant, which has a capacity to produce 10,800 metric tons of textile raw materials per annum, is situated on a 50-hectare plot land that has been owned by Indorama since 1997. The plant will provide 270 new jobs.
Indorama Synthetics, controlled by Indian-born businessman Prakash Lohia, has been listed on the Indonesia Stock Exchange since 1990. New investment in the textile and textile products industry last year stood at Rp 8.3 trillion, up 35.7 per cent compared to a year earlier. New local investment in the sector was recorded at Rp 2.7 trillion while foreign investment contributed Rp 5.4 trillion, according to BKPM.