Prospects For The Textile And Clothing Industry In Indonesia, 2024

Prospects For The Textile And Clothing Industry In Indonesia, 2024

The textile and clothing industry in Indonesia fulfils a vital role in the country's economy. It is Indonesia's largest source of manufacturing employment, and in 2023 textile and clothing exports from Indonesia represented 4.5% of the country’s overall exports during the year. The industry is involved in almost every sector of the textile supply chain, including man-made fibre production, yarn production, weaving, knitting, dyeing, printing, finishing, clothing production, and the manufacture of other finished textile products. Indonesia has a very large population which constitutes a huge and growing domestic market and provides a firm foundation for the textile and clothing industry in Indonesia. Furthermore, the domestic market has been expanding significantly in recent years as prosperity has risen and wealth has spread, and it seems set for further growth. However, these developments have made the domestic market an attractive target for foreign suppliers. Imports are rising strongly and the domestic market has been well supplied by cheap imports from China. Also, illegal imports appear to be a significant and growing problem. Looking ahead, there are ambitious plans for further expansion of the textile and clothing industry in Indonesia and, in order to achieve such expansion, the government has increased its support for the industry through a number of initiatives.