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Indonesia Textile

31 Pages Emerging Markets Direct Reports April 30, 2014 SKU: ISAL5239122

Indonesia Textile

The textile and garment industry is an important contributor to Indonesia’s economy, serving as a large source for jobs and export earnings. Being one of the largest textiles and apparel producers in the region, the country has a long tradition of producing and exporting ready-made garment and home- fashion textiles. Primary production areas of textile and textile products in Indonesia are located in West Java province. Currently, Indonesia’s textile industry accounts for about 2% share of the global market.

Exports of manufactured goods reached USD 21.92bn in 2013, accounting for about 12% of the country’s total exports in 2013. The export value of textile yarns, fabrics, and made-up articles reached USD 4.64bn in 2013, up slightly from USD 4.55bn a year ago. Meanwhile, the textile, leather products and footwear sectors combined were the fourth largest contributor to the manufacturing industry with a market share of 7.8% for the quarter ending December 2013.

Textile companies across north Asia, especially from South Korea, Taiwan and China, have been making significant investments in Indonesia with the aim of exporting to their home country. These foreign entrants are anticipated to boost total investment in the textile industry to about IDR 6tr, according to Ade Sudrajat, Chairman of the Indonesian Textile Association. The Indonesian government is currently evaluating the possibilities of investment in textile machinery by Japanese and Taiwanese companies.

Key Points:
  • The export value of textiles and textile articles reached USD 12.68bn in 2013, up slightly by 1.73% from USD 12.47bn a year ago.
  • The textile, leather products and footwear sectors combined were the fourth largest contributor to the manufacturing industry.
  • Imports of clothing registered a double digit growth in 2013. The figures in 2013 were more than doubled the USD268.88mn recorded in 2009.

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