The Ministry of Industry expressed its appreciation to PT Xinhai Knitting Indonesia and H&M for their commitment to investing in Indonesia. The investment is considered a strategic step that will strengthen the competitiveness of the national textile and textile product (TPT) industry, as well as an answer to challenges amid uncertain global economic conditions.
Deputy Minister of Industry Faisol Riza said in his remarks that the investment is worth more than USD 40 million, covering the construction of an 8-hectare factory in Brebes, Central Java. The facility is projected to employ up to 8,000 people.
“This marks not only the start of physical construction, but also the beginning of long-term cooperation that we hope will bring real benefits to investors, the government and the local community,” he said at the groundbreaking of PT Xinhai Knitting Indonesia in Brebes, Central Java, on Friday (11/7).
According to Faisol, PT Xinhai Knitting Indonesia's investment reflects strong confidence in Indonesia. “That Indonesia is not only able to attract investment, but also has great potential to increase the competitiveness of the TPT industry sector in global markets,” he said.
Moreover, the TPT industry is one of the priority sectors in the national industrial development roadmap. The sector is also key to boosting Indonesia's economic growth, as seen from its performance in Q1 2025, when the TPT industry recorded positive growth of 4.64 percent.
Meanwhile, in terms of exports, the TPT industry recorded USD 3.38 billion from January to April 2025, up 3.57 percent from the same period the previous year. The TPT sector currently employs more than 3.76 million workers, or around 19.18 percent of the national manufacturing workforce.
“With production scheduled to start in July 2026, PT Xinhai Knitting Indonesia is expected to make a major contribution to job creation, increased local economic activity and support for the industrial transformation toward sustainability. Moreover, the factory is designed to use solar panels and wastewater treatment in line with green industry standards,” Faisol explained.
To further increase the competitiveness of a sustainable national TPT industry, Kemenperin has prepared five strategic policies. First, the use of environmentally friendly raw materials and market separation for recycled TPT products. Second, efficient use of water, energy and chemicals. Third, strengthening circular economy practices. Fourth, providing incentives for green industry. And fifth, implementing pilot projects for recycling post-consumer textiles.
“The presence of PT Xinhai Knitting Indonesia as part of H&M's global supply chain, which applies high sustainability standards, is very much in line with Indonesia's vision of a manufacturing sector that is resilient, inclusive and environmentally conscious,” Faisol explained.
The Deputy Minister also added that Kemenperin continues to work to create a conducive business climate, including encouraging collaboration between investors, regional governments and vocational education institutions, especially in new industrial areas such as Brebes, to prepare competent industrial human resources.
“I am proud because this factory has already shown a real commitment to applying new and renewable energy, and has designed a waste treatment system in line with green industry standards. This is an important step in creating a competitive and sustainable textile industry,” Faisol said.
The Director of PT Xinhai Knitting Indonesia, Huang Lu Yu, said the company chose Indonesia as its investment location because it saw great potential. “As a global textile and apparel investor, our group has large-scale knitwear production bases in Nantong, China and Yangon, Myanmar, and has long provided high-quality services to international brands such as H&M, our business partner,” Huang said.
He added that to deepen its strategic cooperation with H&M, the company chose Brebes as a new starting point. “Indonesia is not only a maritime hub in ASEAN, but also has an abundant workforce. The warmth of the people of Brebes also makes us confident to invest in Indonesia,” he added.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia