The Indonesian industry has proposed textile-specific clusters to improve competitiveness of domestic products. The domestic textile industry is also constrained by logistics problems because the upstream and downstream industries are located in dispersed areas. Fiber and yarn producers are in one area, clothing manufacturers are elsewhere.

Industry players want the upstream and downstream industries integrated in one region. In terms of production, from January-March 2018, the textile industry increased eight per cent on an annual basis. The growth is driven by domestic demand as there is still a tightening factor in wholesale imports and other imports, so domestic consumers are still looking for local products.

Indonesia hopes to triple textile and textile product exports in the next five years. If this happens, this sector will be Indonesia’s largest non-oil export contributor and create jobs for six million people. Indonesia is one of the world’s largest textile manufacturers and exporters (although trailing far behind China).

At present, the US is the largest clothing importer from Indonesia. If the country were to lobby with the US to expand its Generalised System of Preferences to include more Indonesian apparel and accessories, this would facilitate the entry of more Indonesian products into the US at lower tariffs.