Socio Today
Indonesia’s textile and textile product (TPT) industry demonstrated robust growth and resilience throughout 2025, attracting significant investment totaling IDR 20.23 trillion (approximately US$1.3 billion) and creating 3.96 million jobs. This vital sector, which grew by 3.55% year-on-year, also recorded substantial export figures of US$12.08 billion, yielding a trade surplus of US$3.45 billion, primarily driven by strong performance in ready-made garments. The impressive figures underscore sustained investor confidence in Indonesia despite a volatile global economic and geopolitical landscape, as highlighted by Industry Minister Agus Gumiwang Kartasasmita in a written statement on Thursday, April 16, 2026.
The Minister emphasized that the TPT sector’s ability to draw such considerable investment and employment is a testament to its fundamental strength and the ongoing trust of both domestic and international investors. Contributing 19.48% to the total workforce in the manufacturing sector, the textile industry plays a pivotal role in the nation’s economic development and job creation initiatives. This performance is particularly noteworthy given the backdrop of global uncertainties, including fluctuating commodity prices, supply chain disruptions, and shifting geopolitical alliances, all of which have posed significant challenges to international trade and investment flows.
Sectoral Performance: A Deep Dive into 2025 Achievements
The 3.55% year-on-year growth rate for the TPT industry in 2025 reflects a steady upward trajectory, positioning it as a key driver within Indonesia’s broader manufacturing landscape. This growth is a composite of various sub-sectors, from upstream fiber production to midstream fabric manufacturing and downstream garment finishing. The substantial export value of US$12.08 billion indicates Indonesia’s competitiveness in the global market, with its products reaching diverse international destinations. The resulting trade surplus of US$3.45 billion is a critical indicator of the sector’s net positive contribution to the national balance of payments, signaling that the value of textile and apparel exports significantly outweighs imports.
Ready-made garments, or "pakaian jadi," emerged as the primary contributor to this surplus. Indonesia has long been recognized for its skilled labor force and established infrastructure in garment manufacturing, producing a wide range of apparel from casual wear to sophisticated fashion items. The country’s strategic location, coupled with preferential trade agreements with several countries, has further bolstered its export capabilities. The focus on value-added products like garments allows Indonesia to capture a larger share of the global textile value chain, moving beyond mere raw material or semi-finished goods exports.
Investment and Employment: Pillars of Economic Stability
The IDR 20.23 trillion investment channeled into the TPT sector in 2025 represents a blend of new capital injections and expansions of existing facilities. These investments typically encompass upgrades in machinery and technology, development of sustainable production methods, and expansion of production capacities to meet growing demand. Such capital inflows are crucial for modernizing the industry, enhancing its efficiency, and ensuring its long-term competitiveness against regional and global rivals. For instance, investments often target the adoption of Industry 4.0 technologies, such as automation, artificial intelligence, and the Internet of Things, to optimize production processes and improve product quality.
The creation of 3.96 million jobs solidifies the TPT industry’s role as a major employment generator. This figure accounts for nearly one-fifth of the total workforce in the processing industry, highlighting its immense socio-economic impact. These jobs range from highly skilled positions in design, management, and quality control to semi-skilled and unskilled labor in manufacturing, cutting, sewing, and finishing. The sector provides crucial livelihoods for millions of Indonesians, often in rural and semi-urban areas where other industrial opportunities may be scarce. The stability of this employment base is particularly vital for maintaining purchasing power and supporting local economies, thereby contributing to overall national economic stability.
Navigating Global Headwinds: Challenges and Strategic Responses
Despite the commendable performance, Minister Agus acknowledged that the TPT industry continues to grapple with a myriad of challenges. Key among these are the global escalation of raw material prices, which can significantly impact production costs and profit margins. Raw materials such as cotton, synthetic fibers (polyester, rayon), and various dyes and chemicals are often sourced internationally, making the industry vulnerable to global supply and demand dynamics, as well as currency fluctuations.
Furthermore, disruptions to global supply chains, exacerbated by geopolitical tensions, logistical bottlenecks, and trade protectionism, have posed significant hurdles. Issues like container shortages, increased shipping costs, and delays in material delivery can impede production schedules and affect timely order fulfillment. The dynamics of international market demand are also constantly evolving, driven by changing consumer preferences, fast-fashion trends, and a growing emphasis on sustainability and ethical production. Adapting to these shifts requires continuous innovation and agility from Indonesian manufacturers.
In response to these multifaceted challenges, the government, through the Ministry of Industry (Kemenperin), is actively fostering strong synergy among government agencies, industry associations, and business actors. This collaborative approach aims to formulate proactive and precisely measured anticipatory steps. "The government continues to closely monitor global developments, including international trade dynamics, changes in supply chain structures, and the policies of trading partner countries," stated Minister Agus, underscoring the proactive stance.
Indo Intertex – Inatex 2026: A Platform for Growth and Optimism
A strategic initiative in this regard is the staging of Indo Intertex – Inatex 2026, an international exhibition designed to serve as a vital business matching platform. The event brings together national and international industry players, facilitating partnerships, technology transfer, and investment opportunities. "This exhibition is not only a venue to showcase innovation but also a platform for collaboration, which in the government’s view is a positive thing," the Minister remarked. Such events are crucial for fostering networking, knowledge exchange, and identifying new market trends and technological advancements.
Beyond its immediate commercial benefits, Indo Intertex – Inatex 2026 also serves a broader purpose: to cultivate optimism. "More than that, this exhibition can demonstrate to the public, both domestically and globally, as a platform that fosters optimism that the TPT industry is still a sunrise sector," Minister Agus added. The term "sunrise sector" implies an industry with strong growth potential and a promising future, capable of attracting sustained investment and generating employment over the long term. By showcasing the latest innovations in machinery, materials, and sustainable practices, the exhibition reinforces this positive outlook, attracting new talent and capital to the sector.
Strengthening the TPT Industry: Strategic Policies and Global Opportunities
The Ministry of Industry is firmly committed to safeguarding and strengthening the TPT industry’s growth through a series of strategic policies. These include efforts to maintain and expand market access, both domestically and internationally. This involves negotiating favorable trade agreements, addressing non-tariff barriers, and promoting Indonesian textile products in key export markets. Domestically, policies may focus on promoting local content utilization and curbing illegal imports to ensure a level playing field for domestic producers.
Furthermore, Kemenperin is actively overseeing the provision of fiscal and non-fiscal incentives. Fiscal incentives, such as tax holidays, tax allowances, and import duty exemptions on machinery or raw materials, aim to reduce operational costs and encourage investment in modernization and expansion. Non-fiscal incentives may include facilitating access to financing, providing technical assistance, supporting research and development, and offering workforce training programs to enhance productivity and efficiency. These measures are designed to drive the transformation of the industry across its entire value chain, from upstream raw material processing to downstream finished product manufacturing.
In the global context, the ongoing shifts in supply chains, largely driven by geopolitical dynamics and the imperative for production diversification, present significant opportunities for Indonesia. Many multinational corporations are seeking to de-risk their supply chains by diversifying their manufacturing bases beyond traditional hubs. This trend opens doors for investment relocation to countries like Indonesia, which offer competitive labor costs, a growing domestic market, and supportive government policies.
Moreover, there is a burgeoning global demand for sustainable textile products. Consumers and brands are increasingly prioritizing eco-friendly materials, ethical production practices, and circular economy principles. Indonesia, with its rich biodiversity and potential for developing sustainable fibers (e.g., from natural sources or recycled materials) and adopting greener manufacturing processes, is well-positioned to capitalize on this trend. Kemenperin’s strategic policies are geared towards fostering these sustainable practices, ensuring that the Indonesian TPT industry remains relevant and competitive in an environmentally conscious global market.
Optimism in Uncertainty: The Resilience of Manufacturing
Minister Agus underscored the critical importance of maintaining optimism amid global uncertainties. "We believe that these geopolitical conditions and market uncertainties will not last long. Therefore, optimism is important. Industry players who are able to survive and be resilient will recover faster and accelerate when the situation returns to normal," he asserted. This message of resilience is a call to action for industry players to adapt, innovate, and prepare for future growth, rather than succumbing to short-term volatility.
The broader manufacturing sector in Indonesia has indeed demonstrated remarkable resilience, recording a growth of 5.30%, surpassing the national economic growth for the first time in 14 years. This achievement signifies a robust and dynamic manufacturing base that is increasingly contributing to the nation’s prosperity. The processing industry contributes a substantial 19.07% to the national Gross Domestic Product (GDP), cementing its position as a cornerstone of the Indonesian economy.
Moreover, the manufacturing sector dominates Indonesia’s export landscape, accounting for an impressive 84.89% of the total national export value. This high contribution highlights the sector’s role in earning foreign exchange, supporting trade surpluses, and integrating Indonesia into global value chains. The sector also serves as a massive employment engine, absorbing a staggering 20.31 million workers across its diverse industries.
Further evidence of the manufacturing industry’s robustness comes from the Industrial Confidence Index (IKI). In March 2026, the IKI stood at 51.86, indicating that the sector remained firmly in an expansionary phase. An IKI value above 50 signifies growth and positive sentiment among industry players regarding current business conditions and future prospects. This consistent expansionary reading reflects manufacturers’ ability to navigate challenges, maintain production levels, and plan for future investments, reinforcing the overall health and promising outlook of Indonesia’s industrial landscape.
In conclusion, Indonesia’s textile and textile product industry, along with the broader manufacturing sector, has shown remarkable strength and adaptability. Through strategic investments, significant job creation, and proactive government policies aimed at addressing global challenges and leveraging new opportunities, the sector is well-positioned for sustained growth. The commitment to innovation, sustainability, and collaborative action, as championed by the Ministry of Industry, is expected to ensure that the TPT industry remains a vibrant and "sunrise sector," contributing significantly to Indonesia’s economic resilience and prosperity in the years to come.
