MATASEMARANG.COM – The National Economic Council (DEN) has announced that 27 new garment and footwear factories will open in Central Java, creating more than 130,000 jobs in the province.
DEN member Septian Hario Seto said the garment and footwear sectors, which employ large numbers of workers, are centered in Central Java.
He said entrepreneurs are expected to benefit from a workforce perspective due to the lack of competition between industries, and from a logistical perspective, as they can utilize the Trans Java Toll Road.
Seto added that DEN views this development as an opportunity to build an ecosystem in the garment and footwear industry.
“In the battery industry, we start from upstream, then downstream, from nickel to downstream. Now, for garments, we already have the downstream, so we are developing the midstream and upstream,” he said as quoted Antara news agency.
He said the midstream and upstream will be less labor-intensive, but without them, the downstream segment would remain dependent on imports.
Seto conveyed that companies in the region face challenges related to labor shortages, as 78 percent of workers tend to move from one factory to another. He also mentioned difficulties in obtaining permits, as new factories are being built outside industrial zones such as in Kendal and Batang.
He said DEN is preparing recommendations for President Prabowo Subianto to develop an ecosystem in the labor-intensive sector. The effort, along with government programs such as the National Internship Program, is aimed at absorbing more workers.
