Indonesia’s exports of textile and textile products were up six per cent in 2017 compared to 2016. Indonesia is set to become one of the top five textile and textile product producers in the world by 2030. The textile sector is improving its efficiency and product quality. Being highly integrated from upstream to downstream, this sector is competitive and is supported by a large amount of human resources for its production activities.

Being both an export-oriented and labor-intensive sector, the textile industry has thus far contributed significantly to Indonesia’s economic growth. The textile industry grew 3.45 per cent last year, having nearly doubled from 2016. This year’s growth target is between four per cent and six per cent. In raw materials, the industry uses 51 per cent synthetic fiber, such as polyester and nylon, 37 per cent cotton fiber, and 12 per cent rayon.

But the industry still faces several obstacles in reaching full competitive potential, as nearly all cotton is imported. In contrast, 80 per cent of synthetic fiber and 85 per cent of rayon is domestically produced, with these numbers expected to increase further. The aim is to increase the sector’s share in Indonesia’s total exports to 1.6 per cent.