Indonesia wants to be among the top five textile exporters in the next couple of years. Currently Indonesia is ranked 10th and has a global market share of 1.8 per cent. In 2015, Indonesia's textile exports contributed 1.21 per cent to the nation’s gross domestic product. This labor-intensive industry provides employment to some three million Indonesians.

The market in Indonesia is dominated by cheap textile imports from China, a trend that worsened after the implementation of the Asean-China free trade agreement in January 2010.

So export-oriented textile companies in Indonesia are given tax incentives and gas at lower prices. Vocational schools are being developed to create adequate human resources. Since the textile industry is aiming for a five to six per cent year on year growth, an additional 6,00,000 workers will be needed each year.

A free trade agreement with the European Union would boost Indonesia’s textile exports. Currently it is difficult for Indonesia to compete with Vietnam on markets in Europe and in the US since Indonesia is not engaged in free trade partnerships with these regions. Therefore Indonesian textile exports to Europe are subject to import duties in the range of 11 to 30 per cent, while Vietnam can export its textile products to the European Union without import duties. This makes Vietnam's products much more competitive.