Singapore based LY Holding Pte Ltd is reported to have obtained a provisional permit to build a new garment factory in Majalengka, West Java.

According to the Jakarta Post, the company is planning to invest around $900,000 in setting up the new factory, which would create around 2000 jobs for local workers.

If final permission to build the factory is given by the Indonesian government then the company will expect to bring in an annual export revenue of around $17m. Permission to grant investment permits was handed to embassies following the government's commitment to improving services for foreign investors.