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Austrian Textile Company's Rp1.5 Trillion Investment in Indonesia, Introduces Eco-Friendly Goods

Austrian Textile Company's Rp1.5 Trillion Investment in Indonesia, Introduces Eco-Friendly Goods

PT South Pacific Viscose (SPV), a textile company from Austria, has invested a large amount of funds, which is around US$100 million or equivalent to Rp1.5 trillion, in Indonesia. This investment is realized through the launch of their latest product, Lenzing Ecovero. 

As one of the world's leading producers of rayon fibers, PT SPV is making significant technological efforts by developing viscose rayon fibers that have a more positive environmental impact.

PT SPV is a subsidiary of the Lenzing Group, a company known as one of the world's largest producers of specialty fibers based on wood raw materials. The viscose fibers produced by them have met the internationally recognized EU Ecolabel certification standards and became the first product in Southeast Asia to meet the certification.

The Lenzing Ecovero brand itself is produced with high sustainability principles. In the production process, from the raw material collection stage, production process, distribution, to the end of the cycle when the product is disposed of, the use of fossil energy and water is reduced to 50 percent lower than that of generic viscose fibers. 

Lenzing Ecovero labeled products have been applied in various textile products, such as woven fabrics and knitwear in the fashion world, including fashionable tops, dresses, t-shirts and casual wear.

Taufiek Bawazier, who serves as the Director General of Chemical, Pharmaceutical, and Textile Industries (IKFT) at the Ministry of Industry of the Republic of Indonesia, has revealed that this increased investment has created new jobs for around 1,500 people.

In addition, he also highlighted the great potential of these SPV products if they are able to gain market share in Europe. It is believed that this will provide a significant boost to the export of Indonesian Textile and Textile Products (TPT) industry products to the global market. Moreover, the current global trend shows a strong tendency towards sustainable products that are environmentally friendly.

The development of Lenzing Ecovero is a concrete manifestation of Indonesia's commitment to reduce greenhouse gas emissions in the industrial sector in the provinces of DKI Jakarta, West Java and Banten, in line with the implementation of the Net Zero Emission Roadmap by 2060. 

This measure is also in line with the government programs listed in the National Industrial Development Master Plan and the Making Indonesia 4.0 roadmap, which aims to increase the production capacity of synthetic fibers and build a sustainable functional clothing production ecosystem.

On the other hand, Sri Aditia, President Director of PT South Pacific Viscose, stated that the company is committed to transforming itself into a more environmentally friendly company with a focus on the products it produces.

For additional information, the Textile and Textile Products Industry (ITPT) plays an important role in supporting the Indonesian economy, not only as a contributor of foreign exchange, but also as a sector with a significant level of employment.

The Ministry of Industry is also committed to strengthening regulations that support investment and encourage the transition to green technology. These regulations cover the entire production chain, from upstream to downstream, with the aim of achieving better integration. In addition, the Ministry encourages the industrial sector to produce technological innovations and sustainable products.

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