Indonesia to lead H&M global production

Indonesia is set to lead the giant Swedish clothing brand.
H&M global production head Helena Helmersson welcomed the cooperation set between the company and the Indonesian government to boost the clothing industry in the country.

“We see an opportunity Indonesia to lead in the clothing industry,” Helmersson said at the Presidential Office in Jakarta on Wednesday 24 February 2016.

The statement comes in the wake of a meeting between President Joko Widodo and Ambassador of Sweden Johanna brismer Skoog accompanied with a representative of H&M this week. The meeting also attendend some Indonesian textile and garment industry businessmen and young designers.

Trade Minister Thomas Tri Kasih Lembong had already announced Sweden-based clothing company H&M to intensify cooperation in Indonesia. He says that the cooperation is related to the Negative Investment List revision.

According to Lembong, the expansion of the H&M production capacity was not only to meet demands from Indonesian market, but also from other countries. The H&M would also open new stores in Indonesia.

He added that the annual value of H&M supplies to Indonesia had reached up to $400 million dollars.

“98% of the products were exported,” says Lembong.

The expansion of the production capacity was one of commitments to be realized by the government and H&M. Lembong said that the government would also team up with the company in terms of clothing designs.

Swedish Ambassador to Indonesia Johanna Brismar Skoog said that H&M had been one of companies that absorbed significant numbers of workers. According to her, other Swedish companies, such as IKEA, had managed to absorb about 20,000 workers in Indonesia.

“We are from the Ministry of Trade, and the Presidential Staff Office has considered that the fashion industry is the future of our industry because it fits with the creative culture and involves many Indonesian young people,” says Lembong.

H&M has been present in Indonesia since 1996.


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