In the third quarter of 2019 Indonesia’s apparel production grew by 15.29 per cent.
Indonesia has given priority to developing the textile and clothing industry. The industrial structure has been integrated from upstream to downstream. Encouragement is being given to exports of textile products. Several strategic steps have been taken, including encouraging the expansion of market access and restructuring of machinery and equipment. There has been an increase in production in textile and apparel production centers.
Indonesia is tightening restrictions on textile imports. The restriction is aimed at protecting domestic producers of products such as certain types of yarns, fabrics and other goods. The reasoning is that products that can be produced domestically should no longer be imported. Textile importers have to gain approval before they can ship in textile goods. With economic growth, and a shift in demand from basic clothing to functional clothing, such as sportswear, the national textile industry is building production capabilities and increasing economies of scale in order to meet the demand in domestic and export markets. The country’s textile industry has weakened in the past three years due to an influx of imported textiles combined with sluggish consumption by Indonesian consumers. Textile fabrics imports rose 74 per cent between 2016 and 2018. And import of textile products, such as some types of synthetic yarns, doubled in the three years to 2018.