Textile Investment to Reach Rp1.5 T

Jakarta (Antara Bali) - Investment in the textile sector is estimated to reach Rp1.5 trillion this year, according to the Indonesian Textile Association (API).

"The investment will only be for engines excluding land and buildings," API general chairman Ade Sudrajat said here on Wednesday.

He said the investment was expected to come mostly from domestic investors as foreign investment has so far been small.

"Foreign investment in the sector has been only around 20 percent," he said.

He explained in 2012 purchase of engines reached Rp2.3 trillion and only around Rp500 billion of it came from foreign investment.

Entering year 2013 the sector meanwhile faced two problems namely electricity price hike of 15 percent and implementation of the financial minister's decision on customs drawback which is considered to hinder growth of textile industries in the country.(*/DWA/IGT/T007)