JAKARTA (TheInsiderStories) - Global investment group from the United States, LDA Capital, injected capital Rp125 billion (US$8.68 million) to local firm, PT Sejahtera Bintang Abadi Textile Tbk (IDX: SBAT), said the company today (03/17). The deal was signed an on March 17.
The issuer is the first textile company in Indonesia to use textile waste as the main raw material for making yarn. Their products have been exported to 25 countries around the world. Director of the manufacturer, Jefri Junaedi, said this investment is very much needed by the company in order to develop their export to the European countries.
“Since 2019, our main product, gloves has successfully penetrated the European market. Every year, we get requests from new countries such as Russia, Estonia and Bosnia and Herzegovina. Unfortunately, we have to refuse several requests due to the current limited production capacity,” he said in an official statement released on Wednesday.
He believed that the cooperation with LDA Capital will become a new breakthrough for their business expansion. The investor has been known for devoting their careers to international cross-border transactions. With the experience of more than 200 transactions on the stock market and the private sector in 42 countries, the aggregate transaction value of LDA Capital reaches more than $10 billion.
According to National Investment Coordinating Board, Indonesia needs funds of up to Rp175 trillion to increase the competitiveness of the textile industry, including garments, from upstream to downstream. Revitalization will also occur in terms of regulations to support the businesses.
The textile industry was one of Indonesia’s largest earners of foreign exchange. While, the textile association revealed the country needs seven years to revitalize the industry from upstream to downstream. The Asosiasi Pertekstilan Indonesia estimated that Indonesia’ foreign exchange income will increase by 10 times to $49 billion in 2030 with a net foreign exchange of more than $30 billion if the country solve the problems.
In addition, the president director of PT Sri Reject Isman (IDX: SRIL) Iwan Lukminto hoped the government would immediately harmonize regulations. Because, there are several problems that must be resolved, such as raw materials to technology.
“We must have progress, a lot of things related to the recommendations that we divide from the six points, first raw material, market, commercial, human resources, energy and technology and finally the environment. This is done so that we can export and our domestic is safe,” he said.
Now, with the conclusion of the Indonesia-European Comprehensive Economic Partnership Agreement (IEU-CEPA) in 2019 textile exports to the European market are expected to increase, according to API.
US$1: Rp14,400
Written by Editorial Staff, Email: theinsiderstories@gmail.com
