Exports of Indonesian textile and textile products are only expected to grow one per cent in 2016, below the three per cent target. Even in the domestic market Indonesia has trouble competing with imports of cheap textile and textile products from Vietnam and China. Indonesian textile producers now control a domestic market share below 30 per cent.
The textile industry is one of the oldest industries in Indonesia and is one of the industries that is considered most badly affected by the country's economic slowdown after 2011. Indonesia's 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 with zero import duties. This makes Vietnam’s products much more competitive.
Recently, electricity tariffs were cut in an effort to support domestic industries. However, this incentive is yet to have a positive impact. It will require much more structural changes in order to boost the domestic textile industry and prevent more bankruptcies as well as mass layoffs.
The Indonesian textile industry also needs to seek non-traditional export markets in order to expand its export base. For example Turkey and Iran are countries that could be a new target.

- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Global textile regulation tightens, forcing realignment across fashion supply ch…
Global fashion and consumer goods supply chains are entering a decisive regulatory transition as Extended Producer Responsibility (EPR) frameworks for... Read more
Luxury’s new power axis, US dominance, China reset, Gulf surge
As the post-China luxury order takes shape, the US is emerging as the industry’s most dependable growth engine, while Japan,... Read more
India’s $9 Billion Landfill Blind Spot How trashed clothes hold the key to globa…
A massive economic windfall is sitting uncollected in India’s landfills, and the key to unlocking it lies in rethinking how... Read more
Red Sea crisis reshapes textile trade routes, challenges India’s export margins,…
Global apparel trade is now in a new operational phase where geopolitical stability and logistics reliability are as important as... Read more
EU’s textile waste rules enter enforcement phase, raising alarms across fashion …
Europe’s apparel and textile industry is approaching one of its most significant regulatory transitions in decades. As the European Union... Read more
Corporate fashion adopts reverse logistics to unlock the $367 bn resale market
Global fashion retailers are rapidly changing their business models around resale, repair, and textile recovery as the secondhand apparel market... Read more
Tariff Shock 2026: Forced-labor enforcement is repricing global fashion trade
Washington’s latest trade intervention signals a break in the global apparel sourcing patterns. The Office of the United States Trade... Read more
Circular Samvaad 2.0 aims to transform Indian textiles from linear waste to glob…
On the occasion of World Environment Day, industry leaders, policymakers, and international experts gathered in the capital yesterday for Circular... Read more
From Sentiment to Sustainability: How Mumbai’s ‘Mega Post Textile Waste Initiat…
Walk into almost any Indian household, and you will find wardrobes harboring clothes that haven’t been worn in years. They... Read more
Trends-Fabrics (Denim-Kidswear) trends for Spring/Summer 2026-27 by Drapers
For the Spring/Summer 2026-27 season, the kidswear denim market is defined by a shift toward lightweight comfort, playful aesthetics, and... Read more












