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Indonesia textile industry development and expansion

Updated 3 times since CLSTR started tracking revisions of this situation.

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2026-09-23 11:02 UTC → 2026-09-26 07:21 UTC · added removed

Indonesia is pursuing strategies to strengthen its textile and garment industry through international partnerships and partnerships, domestic reinvestment. reinvestment, and stricter import controls. At the Istanbul Fashion Connection, Indonesian officials identified Turkey as a strategic gateway for Far Eastern textiles to access European, Middle Eastern, and Central Asian markets. Indonesia aims to leverage Turkey’s production and distribution networks to bolster its position in the global modest fashion ecosystem, focusing on design, production, and digitalization. ecosystem. Domestically, President Prabowo Subianto has ordered the Indonesian government is encouraging revitalization of the textile and textile products (TPT) sector to increase working capital and reinvest. Officials have emphasized that the sector is not a ‘sunset industry’ but a strategic, labor-intensive field that sector, which employs approximately 4 million people. With factory utilization rates at roughly 75 percent, the government is working to To address obstacles challenges such as raw material accessibility and tariff harmonization to enhance national competitiveness and export capacity. President Prabowo Subianto has ordered the revitalization of aging machinery, the TPT industry, instructing Danantara to lead agency has been tasked with industrial restructuring and directing restructuring, while state-owned banks under Himpunan Bank Negara (Himbara) Himbara are directed to resume providing provide productive credit to help companies modernize aging machinery. To further support manufacturers, the for modernization. The government is also considering fiscal measures measures, including potential tax holidays, tax allowances, and Value Added Tax (VAT) relief. Minister of Industry Agus Gumiwang Kartasasmita noted that while To protect the manufacturing sector faces pressures from national industry, President Prabowo has ordered Customs to crack down on the illegal import surges, geopolitical tensions, and rising oil prices, labor-intensive industries are showing signs of recovery. In used clothing, locally known as ‘balpres’. While the second quarter intensity of 2026, sub-sectors these illegal imports has begun to decrease, industry representatives, including textiles, footwear, Farhan Aqil Syauqi of APSYFI, warn that legal loopholes still allow for ‘impor borongan’ (bulk imports) of fabrics and furniture recorded positive growth, signaling a rebound in textile products. Such imports impact the national manufacturing landscape. entire supply chain, from yarn to finished garments, posing a significant threat to local businesses, especially during periods of declining domestic purchasing power.

Versions

  1. 2026-09-26 07:21 UTC Indonesia textile industry development and expansion
  2. 2026-09-23 11:02 UTC Indonesia textile industry development and expansion
  3. 2026-09-23 03:46 UTC Indonesia textile industry development and expansion
  4. 2026-09-22 16:08 UTC Indonesia textile industry development and expansion

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