Indonesia’s textile exports in the first half of 2017 grew by 0.62 per cent year on year. This modest growth was supported by a 20.4 per cent year on year rise in knitwear exports. Indonesian textile exports to key markets have declined. Shipments to the US fell 3.6 per cent, to the European Union by four per cent and to Japan by nearly five per cent in the January-June 2017 period.

Since the start of the year Indonesia’s trade balance has improved markedly. Cheap imports have been discouraged. Imported products dominate 70 per cent of the domestic textile market. The aim is to make Indonesia competitive in the international market with other Asian major textile makers such as India, China, Vietnam and Bangladesh.

More than 50 garment factories have been relocated to Central Java where they have started using more efficient technology and therefore their output is more competitively priced on the world market, hence boosting demand. The textile and textile product sector contributed 8.2 per cent to Indonesia's total export earnings in 2016. Indonesia is one of the world’s largest textile manufacturers and exporters. The industry in Indonesia employs approximately 17 per cent of the country’s workforce and contributes significantly to the country’s economy.