COVID-19 is likely to lead to a decline in Indonesia’s clothing and textile exports during the first seven months of this year. As per Indo Textiles, Indonesia exports around 70 per cent to the United States, the European Union and the Middle East. In 2019, it exported clothing and fabrics worth $9,172.36 million Last year, the value of its exports fell 15.94 per cent year-on-year to $ 7,709.94 million due to the pandemic. It is expected to fall 6.72 per cent over the January-July 2021 period.

Since January 1 this year, Indonesia has implemented the Omnibus Law to create new jobs, increase investment, reduce taxes, simplify licensing procedures, and renew the ease of doing business for both domestic and foreign producers. Recently, the Indonesian Trade Promotion Center (ITPC) collaborated with the Indonesian Embassy in Mexico to boost home décor and textile exports to Mexico. The collaboration covers the Balinese clothing and textile market, as well as Indonesian furniture in Mexico.

The Indonesian textile and clothing industry employs about 600,000 workers. In recent years, around 20 per cent factories shifted production from West Java to Central Java due to lower labor costs. However, efficiency is much lower in Central Java compared to Jakarta and its surroundings in West Java.