Erfan Maruf, Jakarta – Indonesia's sovereign wealth fund Danantara has acquired several domestic textile companies as the government moves to establish a new state-owned enterprise aimed at revitalizing the country's textile industry, Industry Minister Muhammad Sarmuji said Tuesday.
The initiative is part of a broader strategy to consolidate existing manufacturers, strengthen their competitiveness, and develop an integrated textile production ecosystem, with Danantara planning investments estimated at Rp 100 trillion ($5.6 billion).
Sarmuji said the Industry Ministry had held discussions with Danantara on the future development of the textile sector, with both sides agreeing to coordinate their efforts according to their respective responsibilities.
"Several textile companies have been acquired to combine their strengths. Each company has its own advantages, which will eventually be brought together to create synergies," Sarmuji said in Jakarta.
He declined to identify the companies involved or confirm whether troubled textile manufacturer Sri Rejeki Isman (Sritex) was among the acquisition targets.
Sarmuji said Danantara had demonstrated a strong commitment to supporting the domestic textile industry through substantial investment.
"Danantara's investment in the textile sector is quite significant, at around Rp 100 trillion," he said.
Integrated textile production hub
Danantara previously announced plans to establish a new state-owned textile company with an integrated production ecosystem covering the entire supply chain, from upstream manufacturing to finished products.
The initiative is intended to bring different stages of textile production together within a single industrial complex while creating opportunities for partnerships with existing manufacturers.
Danantara Chief Executive Officer Rosan Perkasa Roeslani said the strategy would go beyond providing capital to factories already in operation.
Instead, the investment institution plans to establish a new company that could support existing textile manufacturers and develop a fully integrated production hub.
"We will establish a new company to develop existing businesses. We can partner with established textile companies. However, for a fully integrated industrial estate covering the entire production chain, we will take the initiative to develop it in one location," Rosan said.
The proposed structure would allow Danantara to combine investments in existing manufacturers with the development of new production facilities and strategic partnerships.