Indonesia is among the top 10 textile producing nations in the world and a leading textiles and apparel producer in the Association of Southeast Asian Nations (ASEAN) region. A Market Intelligence (MI) report from Fibre2Fashion.

Being one of the largest textiles and apparel producers in the region, the country has a long tradition of producing and exporting ready-made garment and home fashion textiles. The country is the 12th largest textiles and apparel exporter with major export destinations, including the United States, European Union and Middle-East. It also continues to be a leading textiles and apparel producer in the Association of Southeast Asian Nations (ASEAN) region. The Indonesian textiles industry is expected to grow at a compound annual growth rate (CAGR) of 5.09 percent in terms of revenue during the forecast period of 2018-2023. Despite global decline in textiles demand, the overall textile exports of the country rose by 5 percent on a year-on-year basis in 2017, according to the Indonesian Textile Association (API). The burgeoning business can be attributed to growing textile exports to its three primary destinations.

Open for business with the world

Even though most of Indonesia's several thousand textile businesses sell their goods in the domestic market only, the lion's share of Indonesian-made clothes is shipped abroad, with many of the larger companies producing apparel for global brands. China is the main source of textile products coming into Indonesia, followed by South Korea. One of the sector's key strengths is the rare presence of both an upstream and downstream industry, both of which are well developed. Indonesian textiles companies have been quick to align themselves with international industry standards by making the necessary investments to achieve certifications such as ISO 9001 as well as gain recognition for sustainable and environment-friendly production.