Indonesians split on prospects for new factories

Indonesia's textile and apparel industry will attract 500 new textile factories every year from 2011, said Indonesian Textile Association (API) association chairman Ade Sudrajat said on December 16.

But Redma Gita Wirawasta, Executive Director at Indotextiles, disagreed strongly. "In the past three years many foreign investors who would have built a factory here, have moved on to Vietnam and Bangladesh due to the unavailability of electrical energy". He agreed, though, that if everyone interested in opening in Indonesia could find the necessary power supplies, the country's exports in 2011 could reach more than 30%"

API's Ade diplomatically made the same point. He pointed out a number of regions overseas apparel and textile companies were interested in building plants - but accepted that regional administrations needed "to create better investment climate in their respective areas" for businesses' interest to be translated into new factories and jobs.