Indonesian Textile Association (API) chairman Ade Sudrajat says from the past five years, the domestic textile products have continued to lose their foothold in competition on the domestic market. Imported products have held control of 70 per cent of the $10 billion market a year leaving only 30 per cent of the market for domestic products. In addition, clothing no longer appears a priority requirement for the people with motorcycles figuring higher in their priority.

The government needs to address the problem. Earlier, there government helped through (BLT) that could increase peoples' buying power. API also noted that 90 per cent of the basic material for readymade wear is imported like cloth from South Korea, China and Japan. However, API is optimistic that the country's textile industry would continue to grow as indicated by data from the Central Bureau of Statistics (BPS) which showed that the country's exports of textiles rose 3.8 per cent year-on-year in the first quarter of 2017.

Earlier, the industry ministry had said they would coordinate with the trade ministry to curb imports of textiles and textile products (TPT) to protect domestic industry. Director general of chemicals, textiles and multifarious industries Achmad Sigit Dwiwahjono points out the government encourages development of upstream textile industry. The challenge faced by the company is that most of the country's textile factories especially weaving and knitting sector still use old machines, which are no longer competitive in efficiency. Exports of TPT grew only 2 per cent year-on-year to $2 billion in the first two months of 2017.