Indonesia’s textile industry continues to stand strong despite the global economic uncertainty. The government has reaffirmed its commitment to strengthening Indonesia’s position as a strategic partner within the global textile ecosystem. To support this, a “masterlist facility” has been prepared as an incentive for industries investing in research, development, and vocational education.
As one of the key drivers of Indonesia’s non-oil manufacturing sector, textiles play a vital role in national economic growth. Throughout 2024, the textile and apparel industry grew by 4.26 percent year-on-year, contributing around Rp218.2 trillion to the national GDP, according to Statistics Indonesia (BPS). This performance highlights the industry’s resilience as a backbone of Indonesia’s economy.
Indonesia’s Textile Industry Among Top Export Contributors
While many global markets experienced a slowdown, Indonesia’s textile sector defied the trend with impressive export achievements. Anne Patricia Sutanto, Chair of the Indonesian Garment and Textile Association (AGTI), reported that national textile and garment exports reached US$11.9 billion as of December 2024.
This positioned the industry among Indonesia’s largest non-oil export contributors. “We want to emphasize that Indonesia’s textile industry is not weakening—it’s adapting,” Anne said on Tuesday (October 28, 2025). “We continue to invest in energy efficiency, digitalization, and sustainability to keep Indonesian products competitive in global markets.”
Beyond exports, the sector remains a major employment source across provinces such as West Java, Central Java, and East Java, where textile factories drive local economies and support community livelihoods.
Innovation and Adaptation Power the Industry’s Success
The resilience of Indonesia’s textile sector is closely tied to its adaptability in facing global challenges such as import pressures, shifting demand, and international trade policy changes. Many companies are now investing in green technology, energy efficiency, and digital transformation. These innovations not only cut operational costs but also strengthen Indonesia’s global competitiveness.
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Anne further explained, “We believe that by enhancing competitiveness through human resources, technology, energy, and supply chains, Indonesia’s textile and garment industry can survive and grow even without overprotective policies that don’t always benefit everyone.”
This adaptive approach allows Indonesia to compete with major players like Vietnam, Bangladesh, and China, showing that the nation’s textile industry can thrive independently through innovation and efficiency.
A Promising Future for Indonesia’s Textile Industry
The continued positive trend gives entrepreneurs confidence in the sector’s future. With pro-investment government policies and strong collaboration among industry players, the textile sector is expected to maintain steady growth in the coming years.
Anne Patricia Sutanto emphasized the importance of synergy for sustainability. “We believe the future of Indonesia’s textile industry is sustainable, innovative, and inclusive. The challenges we face today are opportunities to strengthen collaboration between businesses, government, and the community,” she said.
The rise in exports and industrial modernization is also projected to create new jobs and position Indonesia as a leading textile hub in Asia. The Ministry of Industry reaffirmed its commitment to this goal during the 2025 ITMF & IAF World Fashion Convention Annual Conference in Yogyakarta, where Minister Agus Gumiwang Kartasasmita noted that Indonesia’s textile and textile product (TPT) sector had entered a promising new phase.
The TPT industry recorded 5.39 percent growth, contributing 0.98 percent to the national GDP—proof that textiles are no longer a “sunset industry” but a vital pillar of Indonesia’s industrial structure. To boost competitiveness, the government offers a Masterlist Facility, granting import duty exemptions for capital goods that enhance production efficiency. Fiscal incentives such as tax holidays, tax allowances, investment allowances, and super deduction taxes are also available for companies investing in R&D and vocational training.
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