The textile and textile products (TPT) industry in West Java has faced significant pressure in recent years. Several factories have reportedly closed, while others have chosen to relocate production to Central Java to reduce operational costs. However, amid these conditions, industrial areas in West Java have started to receive new investors from China, particularly in the garment sector. This phenomenon shows a new dynamic in the national textile industry landscape.

 

General Manager Sales & Tenant Relations Suryacipta Binawati Dewi said that Chinese garment companies have begun building factories in the industrial areas they manage.

 

"From my presentation earlier, there are several garment factories from China that have come to us," said Dewi.

 

The garment sector has even become one of the sectors with the highest number of companies entering the industrial area.

 

"Maybe around 35% of the tenants from China that entered are engaged in the garment sector," she said.

 

The entry of this new investment has attracted attention because it occurs at a time when the domestic textile industry is facing various challenges. In recent years, several textile factories in West Java have reportedly closed operations or moved their production to other regions, especially Central Java.

 

The relocation is generally driven by production cost factors, including labor wages and operational efficiency. Central Java is considered to offer more competitive production costs for labor-intensive industries.

 

Nevertheless, Dewi believes that West Java still has its own appeal for foreign investors, especially those who want to take advantage of the already established industrial ecosystem.

 

"For garments, usually one factory requires around 5 to 6 hectares of land," she said.

The relatively small factory size allows this sector to grow faster in terms of the number of tenants compared to large industries such as automotive.

 

"In terms of numbers, garments are quite many. But in terms of land size, automotive is still the largest," Dewi said.

 

She added that one automotive facility can require more than 100 hectares of land, which is very different from garment factories that operate on a smaller scale.

 

Even so, the presence of several new garment factories from China is considered a signal that West Java remains a destination for manufacturing industry investment.

 

"Now there are several garment factories from China that have entered and started building their production facilities," she said.

 

The trend of foreign garment investors entering shows that industrial areas in West Java still have competitiveness amid the pressure experienced by the domestic textile industry.

 

"If seen from the number of tenants, the garment sector from China is indeed quite dominant among new investors entering," said Dewi.

 

[Source]