The Indonesian government has revealed its plans to launch a new state-owned enterprise (SOE) that will focus on textiles.

The directive to set up the state-owned firm came directly from President Prabowo Subianto, according to a reports.

Indonesia to Set Up Textile Film

The Indonesian government previously owned a textile SOE. However, according to a report by ANTARA News, Coordinating Minister for Economic Affairs Airlangga Hartarto confirmed that it will be a company. Therefore, the government will not be reviving the old firm.

The planned SOE will be supported by $6 billion (approximately Rp101.29 billion) in funding.

Following the creation of the textile SOE, Airlangga said that a roadmap will be created for strengthening the textile and textile product (TPT) industry.

Airlangga also noted that the government is eyeing an increase in the export of textiles to other parts of the globe.

"Therefore, a roadmap has been created to increase our exports from US$4 billion to US$40 billion in 10 years, and how to deepen the textile industry's value chain," he said.

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Employment and the Textile Industry

Jakarta Globe notes that the textile and apparel sector provides employment to millions of people across Indonesia.

Specifically, the Fair Wear Foundation notes that the sector emmploys 4.3 million people. It likewise accounts for 11% of manufacturing the country's exports, as well as 5% of total exports.

In particular, West Java, Central Java, and Banten are said to a high concentration of manufacturing hubs that cater to the needs and demands of the sector.

Many of these manufacturing hubs employ workers who have low-to-middle income and are described by Jakarta Globe as "semi-skilled." The sector is also considered an "essential source" for females looking for employment.

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