Garment factories located in East Java and West Java, Indonesia, choose to relocate to Central Java because of the lower labor costs in Central Java.
The main reason that triggers the relocation of clothing companies to Central Java is that the minimum wage in Central Java is lower than that in the urban areas of Jakarta, Bogor, Tangareng and Bekasi.
Garment entrepreneurs are also expecting more orders, considering the recent incidents in Bangladeshi garment units. They hope their chances of signing new orders will grow and they will become more competitive by cutting labor costs.
Sutra Chat, president of the Indonesian Textile Association (API), said that the demand for high-skilled labor in Indonesia’s textile and clothing sector has risen to 60,000.
Sutrachat said Central Java will have more than 60 garment manufacturing units from various regions in Indonesia and opportunities to adjust these manufacturing units are in progress.
Sutra Chat announced that an industrial park covering an area of 1,500 hectares has been planned by an investor.
Currently, Indonesia is the 12th largest exporter of textiles and clothing in the world, with 38% of its products exported to the United States.
