This plan was directed by President Prabowo Subianto during a meeting in Hambalang, Bogor, West Java, on January 11, 2026.
According to Hartarto, the textile and garment industry is considered to be at the forefront of facing the risks of US tariff policies.
"We will establish a new SOE specifically for textiles. We will not revive (old textile companies)," the minister spoke at the Indonesian Business Council (IBC) Business Outlook 2026 event in Jakarta on Wednesday.
He explained that based on the results of the completed study, the plan will be followed by the development of a roadmap for strengthening the textile and textile product (TPT) industry.
To support this policy, the government has allocated US$6 billion in funding through Indonesia’s investment and sovereign wealth manager, Danantara.
Hartarto addressed that the funds will be allocated for the procurement of capital goods, the implementation of new technologies, and increasing exports in the textile sector.
"Therefore, a roadmap has been created to increase our exports from US$4 billion to US$40 billion in 10 years, and how to deepen the textile industry's value chain," he added.
He also acknowledged weaknesses in several segments of the textile value chain, particularly in yarn, fabric, dyeing, printing, and finishing.
The establishment of a new textile SOE is therefore expected to drive modernization and industrial deepening across the sector.
Beyond textiles, Hartarto said the government also plans to strengthen the electronics industry, particularly the semiconductor sector, which still faces a significant development gap domestically.
Initial investment in the semiconductor sector is estimated at US$120–250 million, with the potential to increase to as much as US$1 billion.
“We want to revitalize the semiconductor sector. President Prabowo has directed investment into this area as well. The government is preparing funding, and this is a priority to protect the country amid the current tariff war,” he emphasized.
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Translator: Bayu Saputra, Resinta Sulistiyandari
Editor: M Razi Rahman
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