Exports of Indonesian textile and textile products are only expected to grow one per cent in 2016, below the three per cent target. Even in the domestic market Indonesia has trouble competing with imports of cheap textile and textile products from Vietnam and China. Indonesian textile producers now control a domestic market share below 30 per cent.
The textile industry is one of the oldest industries in Indonesia and is one of the industries that is considered most badly affected by the country's economic slowdown after 2011. Indonesia's textile exports to Europe are subject to import duties in the range of 11 to 30 per cent, while Vietnam can export its textile products to the European Union with zero import duties. This makes Vietnam’s products much more competitive.
Recently, electricity tariffs were cut in an effort to support domestic industries. However, this incentive is yet to have a positive impact. It will require much more structural changes in order to boost the domestic textile industry and prevent more bankruptcies as well as mass layoffs.
The Indonesian textile industry also needs to seek non-traditional export markets in order to expand its export base. For example Turkey and Iran are countries that could be a new target.

- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
China’s inward turn, domestic demand is rewriting the export model
China is undergoing one of its most consequential economic recalibrations in decades, driven by geopolitical instability, rising Western protectionism, and... Read more
Egypt bets on a $2 bn green textile city to become Europe’s next sourcing hub
Egypt is making a decisive play to become one of the world's most important apparel manufacturing destinations after securing a... Read more
EU textile imports hit $295.66 bn as price wars mask manufacturing stress
The European Union’s textile and apparel imports grew to $295.66 billion in 2025, a 9.4 per cent year-on-year increase from... Read more
Landmark India-UK trade pact to supercharge textile export margins
The long-awaited India-UK Comprehensive Economic and Trade Agreement (CETA) is officially scheduled to commence on July 15, 2026. This breakthrough... Read more
Is it the end of aspirational luxury? Asia’s consumers demand more than logos
While the global personal luxury goods market remains broadly stable at around €358 billion, the apparent resilience masks a deeper... Read more
Vietnam wins, India slips as US apparel sourcing undergoes massive reset
A trade realignment is transforming the global apparel market, yet India’s manufacturing has stalled at the starting line. Newly released... Read more
US clothing prices rise faster than inflation, reshaping fashion retail strategy
After nearly two years of heavy discounting, inventory liquidation, and margin decline, apparel prices in the US are now rising... Read more
From gym to boardroom performance fabrics are redefining apparel demand
The global apparel industry has entered a new phase of evolution as the distinction between sportswear and everyday fashion continues... Read more
Digital Dominance Redefined: Zara moves past H&M in $100 bn fast fashion bat…
The global fast-fashion sector has reached a inflection point in 2026 where the battleground is no longer only store shelves... Read more
Spykar accelerates offline expansion: plans 100 new stores across India
A titan of the Indian denim-first fashion scene, Spykar has officially unveiled an aggressive retail growth strategy. As consumer demand... Read more












