Jakarta (VNA) – The Indonesian Government plans to revive the national textile industry by strengthening the development of the midstream sector, particularly yarn manufacturing, fabric production, printing, dyeing and finishing, according to Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto.
He said that the upstream and midstream segments of the textile industry had been fragmented in the past, limiting the sector’s overall competitiveness.
Identifying textiles as a key sector in responding to potential risks arising from US tariff policies, Indonesia plans to establish a new state-owned enterprise (SOE) dedicated to the textile industry.
Based on completed studies, the government is also preparing a roadmap for the development of the textile and garment industry to improve its overall competitiveness.
The roadmap aims to raise export value from 4 billion USD to 40 billion USD over the next 10 years, leveraging growing global demand and deeper integration into the industry’s value chain.
The minister emphasised that Indonesia will promote the programme by focusing on the high-end fashion segment linked to lifestyle trends and strong growth potential. He also underscored the importance of expanding export markets, especially in the context of Europe’s planned elimination of tariffs by 2027.
The Indonesian textile and garment industry is currently facing significant structural pressures, with many businesses, particularly small and medium-sized enterprises, laying off large numbers of workers and shutting down. The sector also faces fierce competition from Vietnam, Bangladesh and Cambodia, while rising domestic costs such as minimum wages, electricity and logistics add to the challenges. In addition, an influx of cheap imported garments, especially from China, has flooded the domestic market, placing further pressure on local production./.
