Textile Industry in indonesia

The textile industry of Indonesia is labor intensive and fast growing textile market in present times. The country has an equal share of production utilized internally and equal amount of produce shipped abroad. The growing demand of Indonesian textile market is partly due t cheap labor, huge population and the present crisis which has resulted in declination of value of Indonesian Rupiah has made the trade and business a profitable venture for potential buyers.

Although facing some serious challenges such as High cost of electricity and devaluation of the national currency have led the economy of the country in debacle. Heavy dependence on imported raw materials has also added to the hampering of the growth of textile market. Roughly providing employment to 3 million people, textile market in Indonesia contributes in optimum to the nation's GDP.

That makes the market open for all the major players who have the latest technology machinery which is a prime requisite for sustaining the challenges and surviving the market. The initiatives by government have been welcoming the reforms and growth as it has relaxed the then stringent norms and has added to the ease of doing business.

The unique work on garments of Batik is of Indonesian origin. One of its kind batik works by candles has gained popularity all over the globe and it has revived the cottage industry by promoting the art and in turn has helped in preserving this form of garment design as it was also added in the heritage list in 2009.

textile industries in indonesia


At present the textile export market of Indonesia is worth $11.87 bn of which almost 40% of the production goes to the global market. E-commerce market in textile is expected to grow up to $130 million by the year 2020. The impending challenges have restricted the growth of textile industry in Indonesia to <3% and the desired mark of 3% growth has not been achieved due to the said issues. At present, Indonesia controls roughly 3% of global market in comparison to Chinese market controlling 35%. Mainly due to ongoing crisis, local farmers are not able to meet up the required quantity of raw material yet due to the recent reforms and the trade agreements with EU and Trans Pacific Partnership agreement, the Textile market in Indonesia is expected to grow at $75 bn by 2030.

All being said, the market conditions in Indonesia seem to be promising and are expected to yield gigantic profits if investment and development is to be done in local market and thus the already developing textile market in Indonesia would get the required boost.

indonesia textile Business and Market