PT Xinfung Industry Indonesia on Wednesday, April 30, 2025, held the inauguration ceremony for the construction of its new manufacturing facility within the Subang Smartpolitan industrial estate. The groundbreaking event was attended by Mr. Septian Hario Seto, National Economic Council; Mr. Sri Bimo Pratomo, Secretary of the Directorate General of Chemical, Pharmaceutical, and Textile Industries; Mr. Saribua Siahaan, Director of Promotion for Southeast Asia, Australia, New Zealand, and the Pacific Region; as well as representatives from the local village administration and the local sector police chief.
Xinfung Industry Indonesia operates as a manufacturer and exporter specializing in fiber and tops dyeing, as well as fancy yarn. The entity is a subsidiary of Jiangsu Xinfang Technology Group, which was established in 1982 in Zhangjiagang City, under the administrative jurisdiction of Suzhou in Jiangsu Province, People’s Republic of China.
Driven by the aspiration to broaden its business scope and global reach, the company is expanding into Indonesia with a commitment to further strengthen the supply chain within the Southeast Asia region and to act as a bridge to enhance cultural understanding and relations between Indonesia and China.
Xinfung Industry Indonesia is allocating an investment of approximately USD 30 million for the construction of the first phase of its production facility, encompassing an area of 4 hectares. Furthermore, the estimated investment value for the development of the second and third phases is projected to reach up to three times the initial investment of the first phase.
The completion of the first phase of construction is targeted for the end of 2025, followed by the estimated commencement of full production operations by the end of February 2026. This production facility will ultimately manufacture a diverse range of fancy yarns utilizing natural and/or sustainable yarn as primary materials.
The entire production output will be directly exported to various Southeast Asian countries, including Vietnam, China, Thailand, and other nations requiring these products. By choosing to build the production facility within Subang Smartpolitan, which offers accessibility to key infrastructure such as the Trans-Java Toll Road, Patimban Seaport, and Kertajati International Airport, is projected to significantly enhance the company’s production efficiency, logistics, and export processes.
James Chen, General Manager of Jiangsu Xinfang Technology Group, articulated the rationale behind the company’s investment in Indonesia, stating, “Our decision to invest in Indonesia is predicated on the abundant availability of labor, a conducive cultural environment, a stable business climate, and strong innovative capabilities. We project that Indonesia will become a major player in manufacturing in the near future.” James further elaborated that Subang Smartpolitan was chosen as their investment destination due to its strategic location and comprehensive facilities.
The arrival of this new investment further substantiates Indonesia’s competitiveness as a global investment destination. The implementation of automatic and semi-automatic operational machinery by Xinfung Industry Indonesia is anticipated to create over 300 new employment opportunities during the first phase of the facility. This project also holds the potential for the transfer of new technological expertise, which can enhance the competency of the local workforce in the future.
In his speech, Abednego Purnomo, Vice President of Sales, Marketing & Tenant Relations at Suryacipta (the developer and management of the Subang Smartpolitan), stated, “Every investment brings a positive impact to Indonesia, particularly to the Subang community.”
Abednego continued, “Irrespective of the total number of employees, each individual employed can generate three additional job opportunities. This is what we refer to as the multiplier effect.”
“Moreover, with the company’s production geared towards 100 percent export, it will positively contribute to Indonesia’s trade balance. As the industrial estate hosting Xinfung Industry Indonesia, we, Subang Smartpolitan, are ready to provide our full support,” he concluded.
Sri Bimo Pratomo, Secretary of the Directorate General of Chemical, Pharmaceutical, and Textile Industries, remarked in his speech, “The investment undertaken by PT Xinfung Industry Indonesia in Subang Smartpolitan reinforces our conviction that Indonesia remains a primary global investment destination in the labor-intensive sector.”
He further stated, “We hope this investment will serve as a model for other foreign investments that not only bring capital but also knowledge, technology, and a commitment to environmental and social responsibility. We also encourage close collaboration between investors, local governments, and vocational education institutions to ensure the availability of a skilled workforce ready to work in new industrial locations, including here in Subang.”
The investment in the construction of this new plant is expected to generate a sustainable positive impact on the region, stimulate local economic growth, and enhance the quality and availability of employment opportunities. This initiative is a manifestation of PT Suryacipta Swadaya’s (Suryacipta) vision to “Building a Better Indonesia” through every business activity that provides a positive contribution to society.