PT Asia Pacific Rayon, unit of Royal Golden Eagle (RGE) group, is committed to invests Rp15 trillion (US$1.07 billion) to strengthen downstream industry and to boost exports - Photo by Kompas

JAKARTA (TheInsiderStories) – Local textile producer, PT Asia Pacific Rayon (APR), unit of Royal Golden Eagle (RGE) group, is committed to invests Rp20 trillion (US$1.48 billion) to strengthen downstream industry and to boost exports. The plans marked by the launching ceremony by President Jokow Widodo, today (02/21).

At the event, he also released a containers containing rayon fiber export to Turkey totaling 10,190 tons and shipping to Central Java amounting to 12,000 tons. Viscose rayon is an alternative fabric for making crude oil-based fabrics made from wood cellulose.

“Our garment industry should be greater than Vietnam. We already have our own raw materials here, such as viscose rayon, to support the industry,” he said at the ceremony as reported by local media today.

In addition to Turkey, APR’ products are exported to 14 other countries including key textile centers such as Pakistan, Bangladesh, Vietnam, Brazil, and various parts of Europe. The products also support an expanding Indonesia fashion industry.

It is estimated that the company may generate foreign exchange revenues exceeding Rp1.77 trillion and reduce dependence on imported raw materials by about Rp2.01 trillion annually.

According to director of RGE, Anderson Tanoto, the investment will be disbursed in three years period. He adds, APR will expand its production capacity to 600,000 tons of rayon at its new plant at Pelelawan, Riau.

In 2019, the unit has invested Rp10.9 trillion to produce 240,000 tons of rayon at the plant. The new lines will contributed foreign exchange revenues up to $130 million per year and reduced imports of raw materials to Rp2 trillion annually.

The new facility owned by APR is in the same location as the APRIL Group complex, which is its sister company. Currently, the APR’ facility has an annual production capacity of 240,000 tons a year.

According to industry minister, Agus Gumiwang Kartasasmita by optimizing the availability and use of raw materials originating from Indonesia, could boost the performance of textile sector. He noted,” This is just one of several steps we are taking to continue to improve the performance and competitiveness of the labour-intensive industry.”

US$1: Rp14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com