To remain competitive, the government of Indonesia has decided to continue to make efforts to strengthen and improve the textile industry and products. Strengthening the textile industry is important to increase the nation’s exports.

The business of textiles and textile products was hampered by smuggling or illegal imports in some parts of Indonesia but the government is set to take firm action against activities that hinder the growth of local manufacturing. Talking on this, the country’s finance minister Mulyani Indrawati has said she would act against illegal imports of textile and textile products and importers who have been misusing the facilities provided by the customs and excise department.

The minister said she would invite relevant ministries and institutions to review the rules on textile imports that are still conflicting, overlapping and incompatible with the needs of society, trade and industry. Currently, textile manufacturing is a labor-intensive and creates jobs in the distribution and trade sector.

Indonesia’s export statistics in 2016 showed textile contributed 9.61 per cent of total export value for non oil and gas products, or the second highest after palm oil exports.