Danantara plans Rp100 trillion investment to form textile state enterprise
The plan includes taking over several factories, with Indonesia's industry minister seeking a quick launch to re-employ laid-off textile workers.
Indonesia's investment management agency Danantara is preparing to invest about Rp100 trillion to establish a new state-owned textile enterprise, Industry Minister Muhammad Sarmuji said. The proposal would bring several factories under the new business through acquisitions.
Sarmuji told Detik.com, in remarks cited on 24 October 2026, that his ministry had coordinated with Danantara on the investment and planned factory takeovers. The capital would be directed towards textile manufacturing as part of efforts to revive the national industry.
He said the factories had different strengths that could complement one another once combined. The government hopes this would strengthen production capacity and international competitiveness, giving the proposed enterprise a competitive advantage from the start of operations.
Sarmuji did not give a firm launch date but said he wanted the plan implemented as quickly as possible. He cited the need to provide employment for textile workers who had lost their jobs in mass layoffs.
