While Indonesia's textile industry weaves a staggering 1.2 billion pieces of apparel annually, its true story is told in the numbers, revealing a complex powerhouse of production, workforce, and global trade facing both immense opportunity and pressing challenges.
Key Takeaways
- Indonesia's textile and apparel industry produced 1.62 million tons of yarn in 2022
- The capacity utilization rate of Indonesia's spinning mills in the textile sector was 72% in 2023
- Indonesia manufactured 3.45 billion meters of woven fabric in 2022
- The Indonesian textile industry employed 3.8 million workers in 2022
- Women constitute 65% of the textile workforce in Indonesia as of 2023
- Average monthly wage in textile sector was IDR 3.2 million in 2022
- Indonesia's textile exports reached USD 13.5 billion in 2022
- Yarn exports from Indonesia totaled USD 1.2 billion in 2023
- US market share for Indonesian apparel: 8.5% in 2022
- Textile imports into Indonesia totaled USD 4.5 billion in 2022
- Cotton imports for textile industry: 1.5 million tons in 2023
- Synthetic fiber imports declined 8% to USD 1.2 billion 2022
- Indonesia's textile industry contributed 7% to manufacturing GDP in 2022
- Total revenue of textile firms reached IDR 250 trillion in 2023
- FDI in textile sector: USD 1.5 billion in 2022
Indonesia's textile industry is robust yet faces underutilized capacity and dependency on imports.
Economic
- Indonesia's textile industry contributed 7% to manufacturing GDP in 2022
- Total revenue of textile firms reached IDR 250 trillion in 2023
- FDI in textile sector: USD 1.5 billion in 2022
- Market size of domestic textile consumption: USD 20 billion 2023
- Profit margin average in industry: 5.2% in 2022
- Number of textile companies: 2,500 active in 2023
- Value added by textiles to GDP: IDR 180 trillion 2022
- Growth rate of industry: 4.8% YoY in 2023
- Tax revenue from textiles: IDR 15 trillion in 2022
- Market capitalization of listed textile firms: IDR 50 trillion 2023
- R&D expenditure: 1.2% of revenue in textiles 2022
- Supply chain contribution to national economy: 3.5% indirect 2023
- Inflation impact on textile prices: 6% rise in 2022
- MSME share in textile production: 60% by value 2023
- Export contribution to revenue: 55% for large firms 2022
- Investment growth in sector: 10% YoY to IDR 30 trillion 2023
- Competitiveness index: Indonesia ranks 5th in ASEAN textiles 2022
- Digital transformation investment: USD 200 million 2023
- Bankruptcy rate in textile firms: 2% in 2022
- Gross output multiplier effect: 2.5 times in economy 2023
Economic Interpretation
While Indonesia's textile industry weaves a formidable 7% of manufacturing GDP and spins a quarter of a quadrillion rupiah in revenue, its delicate 5.2% profit margin suggests it's a high-volume, low-margin tightrope walk where innovation is underfunded but its economic thread runs deep through millions of livelihoods.
Employment
- The Indonesian textile industry employed 3.8 million workers in 2022
- Women constitute 65% of the textile workforce in Indonesia as of 2023
- Average monthly wage in textile sector was IDR 3.2 million in 2022
- Textile industry labor productivity grew 5.1% YoY to IDR 180 million per worker in 2023
- 1.2 million workers in garment sub-sector in Indonesia 2022
- Youth employment (under 25) in textiles was 25% of total workforce in 2023
- Skilled labor shortage affected 40% of textile firms in 2022 survey
- Union membership in textile industry covers 30% of workers in 2023
- Overtime hours averaged 12 per month per worker in textiles 2022
- Training programs reached 500,000 textile workers in 2023
- Unemployment rate in textile sector post-COVID was 4.5% in 2022
- Migrant workers in textiles numbered 150,000 in 2023
- Female supervisors in textile factories: 15% in 2022
- Labor turnover rate in industry averaged 18% in 2023
- Child labor incidents in textiles dropped to 0.5% in 2022
- Digital skills training for 200,000 workers initiated in 2023
- Average age of textile workers is 35 years in 2022
- Part-time workers constitute 10% of textile employment in 2023
- Wage growth in textiles was 6.8% YoY in 2022
- 850,000 workers in spinning and weaving sub-sectors in 2023
- Health insurance coverage for textile workers: 85% in 2022
- Strikes in textile industry totaled 45 incidents in 2023
- Vocational training graduates entering textiles: 100,000 in 2022
- Remote work adoption in textile admin roles: 5% in 2023
- Disability employment quota met by 20% of firms in 2022
- Night shift workers: 40% of total textile workforce in 2023
- Apprenticeships offered to 50,000 youth in textiles 2022
- Gender pay gap in textiles: 12% in 2023
Employment Interpretation
Indonesia's textile industry is a vibrant but demanding tapestry, employing millions—mostly women—and showing threads of progress with rising productivity and wages, yet its fabric is strained by persistent overtime, a significant gender leadership gap, and the looming challenge of upskilling a youthful workforce amid a tight labor market.
Exports
- Indonesia's textile exports reached USD 13.5 billion in 2022
- Yarn exports from Indonesia totaled USD 1.2 billion in 2023
- US market share for Indonesian apparel: 8.5% in 2022
- Fabric exports grew 7% to USD 2.8 billion in 2023
- Garment exports to EU reached USD 3.1 billion in 2022
- Top export destination Japan: USD 1.5 billion textiles in 2023
- Footwear exports (textile-related) USD 4.2 billion in 2022
- Export volume of woven fabrics: 1.8 billion meters in 2023
- Share of textiles in total exports: 7.2% in 2022
- Exports to ASEAN countries: USD 2.0 billion in 2023
- Cotton textile exports declined 5% to USD 800 million in 2022
- Home textiles exports: USD 1.1 billion to US in 2023
- Duty-free exports under GSP to US: 60% of apparel in 2022
- Export growth to Middle East: 12% YoY in 2023 textiles
- Knitwear exports totaled USD 4.5 billion in 2022
- Vietnam as competitor overtook Indonesia in US apparel imports 2023
- Export price index for textiles rose 3.5% in 2022
- Technical textiles exports: USD 500 million in 2023
- Imports of textile machinery affected export capacity 2022
- USD 10.2 billion apparel exports in 2023 projection met
- Exports to India grew 15% to USD 600 million in 2022
- Rejection rate of Indonesian textile exports in US: 2.1% in 2023
- Sustainable certified textile exports: 20% of total in 2022
- E-commerce textile exports via platforms: USD 300 million 2023
- Bilateral trade agreement boosted exports to Australia 10% 2022
Exports Interpretation
While Indonesia's textile industry weaves an impressive global tapestry—from the EU's closets to Japan's shelves and now with a sustainable thread gaining prominence—it must urgently stitch up its competitiveness to keep Vietnam from unraveling its crucial market share in the US.
Imports
- Textile imports into Indonesia totaled USD 4.5 billion in 2022
- Cotton imports for textile industry: 1.5 million tons in 2023
- Synthetic fiber imports declined 8% to USD 1.2 billion 2022
- Machinery imports for textiles: USD 800 million in 2023
- Fabric imports from China: 60% of total in 2022
- Dye and chemical imports valued USD 500 million 2023
- Import dependency on raw cotton: 90% in 2022
- Used clothing imports banned but smuggling estimated 200,000 tons 2023
- Polyester filament imports: 600,000 tons in 2022
- Import tariff on yarns averaged 10% in 2023
- Vietnam supplied 25% of Indonesia's fabric imports 2022
- Import growth rate for textile intermediates: 4% YoY 2023
- Local content requirement met 70% in garment imports substitution 2022
- Spandex imports totaled USD 150 million in 2023
- Anti-dumping duties imposed on Chinese fabrics in 2022
- Import volume of finished garments: 50 million pieces 2023
- Raw material imports share in total imports: 65% for textiles 2022
- Digital printing machinery imports up 20% to USD 100 million 2023
- Import from India cotton yarns: USD 300 million 2022
- Trade deficit in textiles widened to USD 2.5 billion in 2023
Imports Interpretation
Despite boasting ambitious local content goals, Indonesia’s textile industry is caught in a costly and ironic loop, hemorrhaging billions to import the very fibers, fabrics, and machines it needs to weave its own self-sufficiency, all while desperately trying to stitch up a widening trade deficit.
Production
- Indonesia's textile and apparel industry produced 1.62 million tons of yarn in 2022
- The capacity utilization rate of Indonesia's spinning mills in the textile sector was 72% in 2023
- Indonesia manufactured 3.45 billion meters of woven fabric in 2022
- Garment production in Indonesia reached 1.2 billion pieces in 2021
- The textile industry's output value grew by 4.2% YoY to IDR 150 trillion in 2022
- Indonesia's non-woven fabric production increased to 450,000 tons in 2023
- Spinning capacity in Indonesia stands at 2.5 million tons per year as of 2023
- Dyeing and finishing capacity for textiles in Indonesia is 4.8 billion meters annually in 2022
- Home textile production (bedding, curtains) reached 250 million units in 2022
- Technical textiles output in Indonesia grew 15% to 300,000 tons in 2023
- Knitted fabric production totaled 2.1 billion meters in Indonesia 2022
- Indonesia's textile mill utilization rate averaged 68% in Q4 2023
- Synthetic fiber production hit 1.8 million tons in 2022
- Cotton yarn production in Indonesia was 850,000 tons in 2023
- Apparel manufacturing output value was IDR 120 trillion in 2022
- Indonesia produced 1.1 billion pairs of socks and hosiery in 2022
- Denim fabric production reached 150 million meters in 2023
- Towel production output was 120 million pieces in Indonesia 2022
- Polyester staple fiber production stood at 1.2 million tons in 2023
- Woven garment production totaled 800 million units in 2022
- Indonesia's textile waste from production was 500,000 tons in 2022
- Machine productivity in spinning mills averaged 450 kg per machine per day in 2023
- Fabric bleaching capacity is 3.2 billion meters per year in 2023
- Indonesia produced 900,000 tons of filament yarn in 2022
- Active textile factories number 1,850 in Indonesia as of 2023
- Output per worker in textile sector was IDR 250 million in 2022
- Viscose fiber production reached 400,000 tons in 2023
- Underwear production hit 500 million pieces in 2022
- Printing capacity for textiles is 2.5 billion meters annually in 2023
- Indonesia's total textile fiber consumption was 2.8 million tons in 2022
Production Interpretation
Indonesia's textile industry is impressively weaving a massive 150-trillion-rupiah tapestry of output, though its looms are only humming at about 70% capacity, hinting at both a powerhouse potential and a thread of underutilization waiting to be pulled.
Sustainability
- Water usage per ton of textile: 200,000 liters in industry average 2022
- Carbon emissions from textile production: 15 million tons CO2eq in 2023
- Recycling rate of textile waste: 25% in 2022
- Organic cotton usage: 5% of total fiber in 2023
- Energy consumption: 1.2 GJ per kg fabric in 2022
- Wastewater treatment plants in 70% of factories 2023
- Sustainable certifications (GOTS/OEKO): 300 factories in 2022
- Chemical reduction initiatives covered 40% of dyers 2023
- Renewable energy use in factories: 15% of total 2022
- Biodiversity impact from cotton imports: high risk score 7/10 2023
- Microplastic release from synthetics: 50,000 tons annually 2022
- Water pollution incidents: 120 cases in 2023 rivers
- Eco-friendly dyes adoption: 30% market share 2022
- Circular economy projects: 50 initiatives funded 2023
- GHG reduction target: 20% by 2030 committed by industry
- Post-consumer textile waste collected: 100,000 tons 2022
- Solar panel installations in 200 factories 2023
- ZDHC compliance: 150 level 2+ factories 2022
- Sustainable sourcing verified fibers: 10% in 2023
- Deforestation linked to viscose: reduced 15% supply chain 2022
- Energy efficiency improvements: 12% savings since 2019 2023
Sustainability Interpretation
The Indonesian textile industry is a water-guzzling, high-emissions beast still learning to wear its eco-friendly cape, with promising steps in solar power and chemical clean-ups doing little to hide the fact that its synthetic fabrics are shedding microplastics like a sunburned tourist while its cotton thirst drains rivers.
Sources & References
- Reference 1BPSbps.go.idVisit source
- Reference 2KEMENPERINkemenperin.go.idVisit source
- Reference 3STATISTAstatista.comVisit source
- Reference 4TEXTILEWORLDtextileworld.comVisit source
- Reference 5ITBitb.ac.idVisit source
- Reference 6INDONESIA-INVESTMENTSindonesia-investments.comVisit source
- Reference 7REUTERSreuters.comVisit source
- Reference 8FIBRE2FASHIONfibre2fashion.comVisit source
- Reference 9ICACicac.orgVisit source
- Reference 10TEXTILEEXCHANGEtextileexchange.orgVisit source
- Reference 11INDOTEXTILEindotextile.comVisit source
- Reference 12ITPCINDONESIAitpcindonesia.orgVisit source
- Reference 13ILOilo.orgVisit source
- Reference 14BP2MIbp2mi.go.idVisit source
- Reference 15BPJS-KESEHATANbpjs-kesehatan.go.idVisit source
- Reference 16KEMENAKERkemenaker.go.idVisit source
- Reference 17OTEXASotexas.govVisit source
- Reference 18ECec.europa.euVisit source
- Reference 19JETROjetro.go.jpVisit source
- Reference 20ITCitc.orgVisit source
- Reference 21ASEANasean.orgVisit source
- Reference 22USTRustr.govVisit source
- Reference 23WTOwto.orgVisit source
- Reference 24COMMERCEcommerce.gov.inVisit source
- Reference 25CBPcbp.govVisit source
- Reference 26DFATdfat.gov.auVisit source
- Reference 27Visit source
- Reference 28BKPMbkpm.go.idVisit source
- Reference 29DJKNdjkn.kemenkeu.go.idVisit source
- Reference 30IDXidx.co.idVisit source
- Reference 31BIbi.go.idVisit source
- Reference 32KEMENKOPUKMkemenkopukm.go.idVisit source
- Reference 33ESGINDONESIAesgindonesia.orgVisit source
- Reference 34ESDMesdm.go.idVisit source
- Reference 35GLOBAL-STANDARDglobal-standard.orgVisit source
- Reference 36ZERODISCHARGEDzerodischarged.orgVisit source
- Reference 37IRENAirena.orgVisit source
- Reference 38WWFwwf.or.idVisit source
- Reference 39IUCNiucn.orgVisit source
- Reference 40MENLHKmenlhk.go.idVisit source
- Reference 41WORLDBANKworldbank.orgVisit source
- Reference 42ROADMAPTOZEROroadmaptozero.comVisit source
- Reference 43FORESTSforests.orgVisit source
