Indication of Optimism; Groundbreaking Amid A Pandemic Situation in Kendal Industrial Park, Special Economic Zone

June 05, 2020

PT. Eclat Textile International is a Taiwanese multinational company operating in more than four countries. Eclat Textile Co., Ltd., PT. Eclat’s mother company,  is a publicly traded stock company in Taiwan and one of the key players in the global performance textile industry. Since it was founded in 1977, Eclat has a commitment to create, develop, and design activewear materials and apparel globally. In 2019, as a step to expand production, diversify risk and increase their capacity, Eclat decided to invest $ 170 million in Indonesia. And as their investment destination in Indonesia, they decided to build a factory in Kendal Industrial Park, Central Java.

In the realization of their investment in Indonesia, they plan to divide investment into three stages. The first stage is to build a garment factory, which is planned to start construction on this year. On last Saturday (May 30, 2020), Eclat conducted groundbreaking in Kendal Industrial Park (KIP). This groundbreaking with an area of 14 hectares is the first phase of the entire Eclat investment land in Kendal, which covers an area of 24 hectares.

 PT. Eclat Textile International successfully carried out their first groundbreaking factory in Indonesia according to schedule even in the midst of the spread of covid-19 situation. The Groundbreaking event was attended by representatives of PT. Eclat Textile International, PT. Kendal Industrial Park as the developer of the Industrial park, and PT Takenaka Indonesia As a contractor for pile construction of their factory in KIP. Groundbreaking in the midst of the covid-19 pandemic is the optimism of PT Eclat Textile International which can be an example for other industries to remain optimistic and keep moving forward. Eclat believes that covid does not reduce demand for sport wear & apparel products. During this pandemic situation, their business is less affected. It is becoming a trend of getting a healthy lifestyle and one of them  is through exercising. Sports are not only done outdoors. There are currently many choices for "workout from home" which are supported by a variety of sports applications and work out training via online media such as streaming youtube, live Instagram, etc. Because of the trend of workout from home, the demand for sport wear is predicted to continue to rise. Therefore, Eclat continues to move forward to conduct groundbreaking according to the schedule.

Further, PT Eclat's groundbreaking event was still carried out with health safety procedures. In this case, KIP contributed to ensuring the health and safety of anyone in KIK area by implementing co-19 prevention procedures and carry out a “Safety Ceremony”. All participants in this event should pass a temperature check at the MAIN gate, use a face mask, and do social distancing.

The construction of Eclat’s first factory is scheduled to be completed by mid of 2021 and it plans to produce 1 million units per month. This first stage of their investment aims to launch products for the markets of the Association of Southeast Asian Nations (ASEAN) and China.

After the construction of their first factory is completed, they plan to start the second stage investment in 2022 and build another garment factory, also with a monthly capacity of 1 million units. Then they also plan to make a third stage of investment, that will involve building of a knitting mill with a monthly capacity of 1 million kg. Eclat said that before realizing the construction of a knitting mill, the company would map the details of the investment through suppliers which made it possible to create a comprehensive supply chain for its factory in Indonesia.