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Anticipation surrounds the forecasted decline in investment in the textile and textile products (TPT) sector for the upcoming year, shedding light on the dynamics of the global economy. The Indonesian Textile Association (API) predicts this potential downturn as a direct result of the current unstable global conditions. According to API Chairman Jemmy Kartiwa Sastraatmaja, factors such as the global economic downturn and high loan interest rates in the United States (currently at 5.5%) play a crucial role in assessing investment potential. His estimate suggests that the impact of the US Federal Reserve's interest rate cuts is expected to be felt only in 2025, beginning in late Q2 of 2024.

This situation has stretched purchasing power and the utilization of the TPT industry in various countries, including Indonesia, which has recorded a utilization rate below 50%—the lowest level since 2020. This has led to a decrease in both domestic and foreign investment interest, according to Jemmy.

However, this perspective is not entirely pessimistic. Vice-Chairman of Regional Autonomy Development at the Indonesian Chamber of Commerce and Industry (Kadin), Sarman Simanjorang, believes that the investment target for 2024 can still be achieved. Nevertheless, achieving this requires the participation of all stakeholders in creating a conducive business and investment climate.

Sarman's confidence is supported by the fact that investment realization in Indonesia has consistently exceeded targets over the past three years, despite the challenges posed by the Covid-19 pandemic. During this period, investment grew from Rp 826.3 trillion in 2020 to reach Rp 1,207 trillion in 2022.

This growth demonstrates investors' confidence in Indonesia as a promising investment destination. However, to sustain this positive trend, several crucial factors come into play.

Amidst the political landscape in the coming year, creating a stable and secure political climate is essential. Additionally, resolving technical issues related to permits, land, infrastructure, and reliable energy supply takes precedence.

Government-backed policies promoting downstream activities and the development of processed industries using local natural resources are expected to attract investor interest. In Sarman's view, if all these requirements are met, the potential for investment in the coming year can still increase, as seen in the past three years.

Global challenges and local political dynamics pose a test for Indonesia's investment potential in the TPT sector next year. However, with a collective commitment from various stakeholders, including the government, industry, and relevant institutions, the opportunity to achieve investment targets remains wide open.