In the two months of early 2017, Indonesia’s textile and textile product (TTP) export have touched United States (US)$2 billion, or up by 3% compared to the same period in the previous year.
"The TTP industry, which is also an export-oriented labor-intensive sector, can be a social safety net because it employs a lot of workforce, up to now, estimated at three million workers," said Airlangga Hartarto, Minister of Industry on Monday (4/24).
The Ministry of Industry noted that TTP industry’s investment value in 2016 reached IDR7.54 trillion, with a significant foreign exchange gain from the export value of $11.87 billion, as well as employing as much as 17.03% of the total workforce in the manufacturing industry.
According to Airlangga, the national textile industry industry during the last three years has experienced a contraction in growth, one of which is driven by new investments and factory expansion in order to increase production capacity, one of which is Sritex.
"For that, we express our appreciation to Sritex for increasing its investment by IDR2.6 trillion to bolster production capacity in spinning mills and finishing, which will absorb the new workforce of 3,500 workers," he explained. This certainly has a positive impact on tax revenues for the state and at the same time can meet some of the needs of domestic raw materials that are still imported.
Iwan Setiawan Lukminto, President Director of Sritex, revealed that the expansion of the factory provided a rise in the company's production capacity.
"With the expansion, Sritex Group currently has 24 spinning mills, seven weaving plants, 5 finishing plants and 11 garments, with a total employee of over 50,000 people," he said. Therefore, the development and improvement of human capitals becomes the company's priority.
"Human capitals are the company's leading assets formed by structured training. In addition, we apply the corporate culture with an integrated and innovative so as to get a tough human resources, skilled, competent and character, "he explained.
In order for the national textile industry to improve its competitiveness, which required not only the capital and technology aspects, but also competent human capitals are absolutely necessary.
Therefore, the Ministry of Industry is making efforts to facilitate the improvement of human resources through a program of cooperation that links and match between industrial companies with vocational high schools (SMK).
The Ministry is able to invite 117 companies to sign a cooperation agreement with 389 vocational high schools in an effort to run industrial vocational education programs in the region of Central Java and Yogyakarta.
This program is a continuation of which has been launched in Mojokerto, on 28 February 2017 involving as many as 50 companies and 234 vocational high schools in East Java.