China's professional wear leader Nanshan Zhishang has invested 110 million yuan in Indonesia to build 160,000 sets of clothing base 丨 PDAEXSEA
Investment in Indonesia Textile base 2025-03-17 08:55:03   Page view:406

China's largest professional wear leader, the world's largest tightly woven fabric supplier to start a new journey!

Shandong Nanshan Zhishang Technology Co., Ltd. announced an investment of 110 million yuan to establish a modern clothing base in Indonesia, taking advantage of the east wind of the Belt and Road to reshape the competitiveness of the industry by upgrading the supply chain.



Photo source: Nanshan Zhishang official website


01

Nanshan Zhishang Indonesia project details


Investment layout: $15.6723 million (about 112 million yuan), located in Karangbatang Special Economic Zone, Indonesia, enjoy tax exemption + tax allowance double dividend

Capacity planning: An annual output of 160,000 sets of high-end suits/tooling, to build a production-trade-sales integrated hub

Strategic value: Make use of Indonesia's free trade advantages with Europe, America, Japan and South Korea to create a bridgehead of the textile industry that radiates the world


02

Investment insight


Optimize supply chain layout and reduce production costs


Indonesia has a good textile and garment industry foundation, the market potential is huge.

At the same time, Indonesia and China have strong complementarity in the field of textile and garment, Indonesia imports a large number of fabrics from China every year, and enterprises between the two countries have frequent trade exchanges, and have a wide range of fields and cooperation opportunities.

In recent years, Indonesia's domestic consumer market has continued to expand, and it has achieved free trade with Europe, the United States, Japan and South Korea and other countries, and there are various concessions for textile exports.

Nanshan Zhishang chooses to invest in the construction of a production base in Indonesia, which can make full use of the local labor advantages and preferential policies, optimize the company's supply chain layout, reduce the trade barriers of raw material import and product export, so as to effectively reduce production costs and improve the company's profitability and anti-risk ability.


Deepen the strategic layout of globalization and enhance brand influence


For companies with a global vision like Nanshan Zhishang, going to Indonesia is not only the need for market expansion, but also an important step to deepen the strategic layout of globalization.

By establishing a production base and sales network in Indonesia, enterprises can better understand the local market demand and consumption habits, get close to customers, and improve the ability and level of service to customers.

At the same time, with Indonesia's influence in Southeast Asia, companies can further expand brand awareness and market influence, laying the foundation for building a more competitive brand image on a global scale.

When China's smart manufacturing meets ASEAN opportunities, Nanshan's Indonesia is not only the establishment of a factory, but also the epitome of the global restructuring of China's textile industry supply chain.


Sailing now may be the best window to open the emerging market of 280 million people.


03

Challenges for companies going offshore in Indonesia


The complexity of cross-border investment approval and filing


For enterprises to make cross-border investment, they need to obtain the record or approval from relevant domestic departments and overseas local competent authorities.

Nanshan Zhishang's investment in Indonesia is facing the approval or filing of domestic and overseas investment management institutions, as well as the approval or filing procedures of local investment licensing and enterprise registration in Indonesia.

These procedures often involve the laws, regulations and policy requirements of multiple countries, and the process is complicated, the time is long, and there are certain uncertainties. If the enterprise lacks professional guidance and help, it may encounter many difficulties and delays in the approval process, affecting the smooth progress of the project.


Differences between policies and regulations and business environment


Indonesia's policy system, legal system and social and business environment are quite different from China's.

In the process of investment and operation in Indonesia, enterprises need to face the differences in tax policies, labor laws and regulations, environmental protection requirements and other aspects of different countries, which may bring many challenges to the operation and management of enterprises.

For example, there may be certain restrictions on the share ratio and business scope of foreign-funded enterprises in Indonesia. Local labor laws and regulations are strict in protecting employees' rights and interests, and enterprises need to invest more energy and resources in human resource management.

In addition, Indonesia's business culture and social customs are also different from China's, and enterprises need to spend time to adapt and integrate into the local business environment to avoid cultural conflicts and misunderstandings affecting business development.



At present, Indonesia is in a golden period of strategic development. President Prabowo's inauguration has further clarified the policy direction of opening up foreign investment and optimizing the business environment, and Chinese enterprises have a lot to do in Indonesia.

However, problems such as qualification licensing, policy differences, cultural barriers, and resource docking efficiency still plague many Chinese enterprises.

PDAEXSEA has built a local service team in Indonesia through the "Chinese experience + Indonesian resources" model. The team members have a deep understanding of the local policies, regulations and business environment in Indonesia, and have accumulated rich successful experience in the field of service enterprises going abroad.

According to the specific needs of enterprises, we can provide tailored solutions, covering investment planning, approval and filing, legal and tax compliance, resource docking and other aspects, and provide all-round support for Chinese enterprises' investment landing and business expansion in the Indonesian market.

PDAEXSEA Indonesia looks forward to your visit:


Sarinah Building, 12th Floor ,Central Jakarta


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