Inp.polri.go.id - Jakarta. The government is launching a massive "reborn" strategy for the domestic textile industry, backed by a $6 billion investment to strengthen the midstream sector. 

Speaking at The World Engineering Day for Sustainable Development on Wednesday (4/2/2026), Coordinating Minister for Economic Affairs Airlangga Hartarto revealed plans to establish a new State-Owned Enterprises dedicated to textiles, as reported by antaranews.com.

"We will revive the industry in the midstream... because so far the upstream and middle sectors have been somewhat disconnected," he said, highlighting the sector's role as a buffer against global tariff risks.

The $6 billion funding, managed by sovereign wealth fund Danantara, will modernize capital goods and integrate new technologies. A 10-year roadmap targets a tenfold increase in exports, from $4 billion to $40 billion. 

The initiative, directed by President Prabowo Subianto, focuses on fabric production, yarn spinning, and advanced finishing processes to bridge the existing gap between upstream and downstream sectors in a bid to capitalize on the European market's zero-import duty policy set for 2027.

(mg/inp/pr/rs)