The Indonesian textile and apparel sector’s performance during the second quarter of 2026 climbed 6.36% year-on-year, surpassing the 4.35% growth logged during the equivalent stretch a year prior.
This outcome is regarded as an encouraging signal following the pressures the textile and apparel sector has weathered in recent years.
Beyond notching up above-average growth against non-oil and gas processing industries, this sector has likewise drawn investment reaching IDR 11.40 trillion across the first half of 2026, mirroring rising business confidence in the industry’s outlook.
Ian Syarif, Deputy Chairman of the Indonesian Textile Association (API), remarked that this growth signals the textile and textile industry is entering a rebound phase with expanding room for growth.
He observed that the sector’s growth pace has even outstripped the national economy and the non-oil and gas processing industry.
He explained that the uplift in industrial performance was underpinned by several factors, spanning heightened investment, stronger exports, a trade balance surplus, and substantial employment absorption.
By the second quarter of 2026, investment within the textile and apparel sector reached Rp11.40 trillion, marking an 11.85% climb against Rp10.19 trillion during the same stretch a year earlier.
Investment within the textile industry rose from Rp6.05 trillion to Rp6.78 trillion, whilst investment within the apparel industry climbed from Rp4.14 trillion to Rp4.62 trillion.
According to Ian, this investment growth stands as a significant indicator given it mirrors business optimism regarding Indonesia’s market outlook and competitiveness as a textile production hub.
The investment funds will be channelled towards boosting production capacity, modernising machinery, improving energy efficiency, and meeting global market sustainability standards.
From a trade standpoint, textile and apparel exports reached US $4.85 billion between January and May 2026, a 1.57% climb against $4.77 billion during the equivalent months in the previous year.
Across the same period, imports likewise rose from $3.41 billion to $3.58 billion and logged a trade surplus of roughly $1.27 billion, but is below $1.37 billion surplus recorded during January–May 2025.
Ian cautioned that imports climbing faster than exports stands as a cause for concern. He argued that bolstering exports must go hand in hand with domestic market protection through monitoring illicit imports and unfair trade practices.
He likewise encouraged optimising various international trade agreements to widen access for Indonesian textile products across the markets of the United States, the European Union, and other partner nations, thereby lifting demand and broadening export opportunities.
Beyond contributing to foreign exchange, the textile and apparel sector remains amongst the largest labour-intensive manufacturing sectors within Indonesia, employing roughly 3.86 million workers.
This encompasses approximately 1.01 million workers within the textile industry and 2.84 million workers within the apparel industry.
According to Ian, the sustainability of the textile and textile sector concerns not merely economic growth but also the millions of families reliant on the sector for their livelihood. Therefore, boosting the industry’s competitiveness must stand as a shared concern.
Ian likewise underlined the importance of strengthening the domestic market as a foundation for national industrial growth so that investment benefits can be directly felt by companies producing goods and employing workers within Indonesia.
He stated that the 6.36% industrial growth ought to serve as a foundation for boosting factory utilisation, lifting exports, expanding investment, and sustainably enhancing worker welfare.
Image courtesy: Dai Bieun Handan
