Jakarta (ANTARA) – Coordinating Minister for Economic Affairs, Airlangga Hartarto, said the country’s textile industry will be “reborn” by strengthening the midstream sector.“So, we will reborn the industry in the midstream, especially in the middle sector—fabric production, yarn manufacturing, printing, dyeing, and finishing—because until now, the upstream and midstream segments have been somewhat disconnected,” he said at The World Engineering Day for Sustainable Development 2026 in Jakarta on Wednesday.Following President Prabowo Subianto’s directives, the government plans to establish a new state-owned enterprise (SOE) focused on textiles.The textile and garment industry is seen as a frontline sector in addressing potential risks from U.S. tariff policies.The investment fund BPI Danantara will allocate $6 billion to build the new textile-focused SOE. The funds will be used for capital goods procurement, implementation of new technologies, and boosting exports in the textile sector.Based on completed studies, the plan will be followed by the preparation of a roadmap to strengthen the textile and textile product (TPT) industry.The roadmap aims to increase exports from $4 billion to $40 billion over the next 10 years, leveraging growing global demand and deeper integration of the industry’s value chain.“We are pushing this because the industry is high fashion, part of lifestyle, and continues to grow,” Airlangga said.“This is important to open up markets, especially as Europe will eliminate tariffs in 2027. The growth potential is significant,” the Minister added.