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Prospects for the textile and clothing industry in Indonesia, 2016

Prospects for the textile and clothing industry in Indonesia, 2016

The textile and clothing industry in Indonesia fulfills a vital role in the country's economy. It is the largest source of manufacturing employment and in 2015 it was the second largest source of exports. The industry is involved in almost every sector of the textile supply chain including yarn production, weaving, knitting, dyeing, printing and finishing and clothing manufacture and there is a large man-made fibre industry. Indonesia has a very large population. This constitutes a huge and growing domestic market for the textile and clothing industry worldwide, and provides a firm foundation for the 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. The government is encouraging foreign investment, and has set targets to increase the industry's share of global textile and clothing trade markedly by 2020. This report looks at the development of the textile and clothing industry in Indonesia, its size and structure, textile and clothing production, and production technology and machinery. The report also features: a geographical, political and economic profile; detailed analysis of the country's imports and exports; a review of government policies, investment incentives and foreign investments; an analysis of the industry's strengths, weaknesses, opportunities and threats (SWOT); and insight into Indonesia's infrastructure and human resources and how these affect the textile and clothing industry.


  • SUMMARY
  • IMPORTANCE OF THE TEXTILE AND CLOTHING INDUSTRY TO THE ECONOMY OF INDONESIA
  • DEVELOPMENT OF THE TEXTILE AND CLOTHING INDUSTRY IN INDONESIA
  • INDONESIA: GEOGRAPHICAL, POLITICAL AND ECONOMIC PROFILE
    • Geographical profile
    • Political profile
      • Table Indonesia: political and economic profile, 2015
    • Economic profile
      • Table Indonesia: economic indicators, 2012-15
  • INDONESIA: INFRASTRUCTURE
    • Road transport
    • Railways
    • Airports
    • Seaports
    • Telecommunications
  • INDONESIA: HUMAN RESOURCES
    • Table Indonesia: number of employees in textile and clothing factories by sector, 2009-13
  • SIZE AND STRUCTURE OF THE TEXTILE AND CLOTHING INDUSTRY IN INDONESIA
    • Table Indonesia: number of textile and clothing companies in operation, 2009-14
    • Table Indonesia: number of textile and clothing factories by sector, 2010-13
  • INDONESIA: TEXTILE AND CLOTHING PRODUCTION
    • Textile and clothing production
      • Table Indonesia: textile and clothing production by sector, 2010-13 (tons)
  • INDONESIA: TEXTILE MANUFACTURING COSTS
    • Yarns
    • Woven fabrics
    • Knitted fabrics
  • INDONESIA: TEXTILE AND CLOTHING EXPORTS
    • Table Indonesia: textile and clothing exports by type, 2009-15 (US$ mn)
    • Table Indonesia: textile and clothing exports by destination, 2013-15 (US$ mn)
    • Table Indonesia: clothing exports by country of destination, 2009-15
  • INDONESIA: TEXTILE AND CLOTHING IMPORTS
    • Table Indonesia: textile and clothing imports by type, 2009-15 (US$ mn)
    • Table Indonesia: textile and clothing imports by supplying country and region, 2013 and 2014 (US$ bn)
  • INDONESIA: TEXTILE AND CLOTHING DOMESTIC MARKET
    • Table Indonesia: retail sales of textiles and clothing, 2009-14
  • INDONESIA: FOREIGN DIRECT INVESTMENT (FDI) IN THE TEXTILE AND CLOTHING INDUSTRY
    • Foreign investment
      • Table Indonesia: foreign direct investment (FDI), 2010-15
  • TEXTILES AND CLOTHING IN INDONESIA: GOVERNMENT POLICIES AND INVESTMENT INCENTIVES
    • Government policies
    • National investment law
    • Freedom to invest
    • Company formation
    • Taxes and duties
    • Availability of foreign exchange
    • Access to local funding
    • Labour practices
    • General infrastructure
    • Availability of land
    • Encouragement for small and medium-scale enterprises
    • Investment promotion
    • Investment protection
    • Double taxation relief
    • Arbitration
    • Investment incentives
    • Import duties
    • Tax allowances
    • Export manufacturing
    • Bonded zones
    • Investment guarantees and dispute settlement bodies
      • Investment Guarantee and Protection Agreement
    • Multilateral Investment Guarantee Agency (MIGA)
    • International Centre for Settlement of Investment Disputes (ICSID)
    • Intellectual property protection
  • TEXTILES AND CLOTHING IN INDONESIA: STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS
    • Strengths
    • Weaknesses
    • Opportunities
    • Threats

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