The national textile and textile product (TPT) industry remains one of the important sectors in Indonesia's economy. As a labor-intensive industry, the sector employs more than 3.8 million workers and recorded exports worth around USD 4.85 billion in Semester I of 2026. Amid the various challenges facing TPT industry players, the sector has also shown positive developments through the recovery of industrial activity.
“The textile and apparel industry plays a very strategic role because it employs more than 3.8 million workers. Although some companies are under pressure, at the same time there are also new investments and business expansions. This shows that the TPT sector still has plenty of room to grow,” Minister of Industry Agus Gumiwang Kartasasmita said in a statement in Jakarta on Tuesday (18/8).
According to the Minister of Industry, the growth in investment and recovery of employment need to be followed by strengthening the foundations of industry. The government therefore continues to implement various policies, including investment incentives, restructuring programs, labor-intensive industry credit (KIPK), export financing from the Indonesia Eximbank (LPEI), strengthened trade remedy policies, accelerated implementation of Making Indonesia 4.0, and the application of Green Industry Standards.
In terms of textile and apparel industry performance, exports during Semester I of 2026 reflected a significant contribution to the national economy, reaching USD 4.85 billion. Employing more than 3.8 million workers, the textile and apparel industry is also one of the largest providers of jobs in Indonesia.
This improved performance needs to go hand in hand with the transformation of production processes. Machine modernization, the use of technology, improved human resource competence and the application of green industry principles are important to ensure that national industry can meet the demands of the global market.
“Today the world does not just buy the product, but also looks at how it is produced. So remember, sustainability is no longer a burden but an advantage in global competition,” he said.
Opportunities for market expansion are also opening up through the implementation of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA). To compete in the global market, TPT industry players need to improve quality, efficiency, innovation and the ability to meet international standards.
In addition, the Ministry of Industry will continue to work with businesses, associations, regional governments, and related ministries and agencies to strengthen the national TPT industry. These efforts aim to ensure that incoming investment grows into higher production capacity, exports and employment, while strengthening Indonesia's position in global industrial supply chains.
“The government supports textile and textile product industry players in increasing their competitiveness and winning global competition. Let us build an Indonesian TPT industry that can withstand change and grow to be more productive, innovative and sustainable,” the Minister of Industry concluded.
As the Republic of Indonesia marks the 81st anniversary of its independence, the TPT industry continues to grow and endure in its contribution to building the national economy. Going forward, the TPT industry has the opportunity to play a bigger part in maintaining the momentum of improving national industrial performance.
This is also in line with the July Industry Confidence Index (IKI), which remains in expansion territory at 53.10. This shows that industry players' confidence in business conditions has been maintained. For the TPT industry, with its large workforce, this provides a foothold for sustaining production while strengthening its contribution to the national economy.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia