Government's Textile SOE Plan Under Scrutiny

Danantara Evaluating Multiple Options

The Indonesian government's plan to establish a new state-owned enterprise (SOE) in the textile sector is currently under review, according to Rosan Roeslani, CEO of Danantara, the investment vehicle of the country's Sovereign Wealth Fund, Badan Pengelola Investasi (BPI). Rosan stated that Danantara is still assessing various options regarding the proposed textile SOE, indicating that no final decision has been made.

Investment Criteria and Feasibility Studies

Rosan emphasized that any investment decision by Danantara will be based on thorough feasibility studies and comprehensive assessments. The company has established specific criteria and parameters that potential investments must meet, with a particular focus on job creation as a key metric for evaluating investment opportunities. This approach suggests a strategic intent to ensure that any new SOE contributes meaningfully to the national economy.

Background and Government's Intentions

The proposal to form a new textile SOE was initially announced by Minister of Economic Affairs Airlangga Hartarto. The government's consideration of this move likely reflects a broader strategy to strengthen Indonesia's textile industry, potentially enhancing its global competitiveness and domestic economic impact.

Implications for Indonesia's Textile Industry

The potential establishment of a textile SOE could have significant implications for Indonesia's textile sector. If realized, it might lead to increased government support for the industry, potentially through capital injection, policy backing, or strategic partnerships. The outcome of Danantara's evaluation will be closely watched by industry stakeholders and could signal the direction of the government's industrial policy in the coming months.