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Indonesian textile, clothing largest source of employment

The textile and clothing industry in Indonesia fulfils a vital role in the country's economy, it being the largest source of manufacturing employment in the country. In 2015, it was the second largest source of exports. The industry is involved in almost every sector of the textile supply chain including yarn production, weaving, knitting, dyeing, printing and finishing and clothing manufacture and there is a large man-made fibre industry. In recent years, the domestic market has been expanding significantly as prosperity has risen and wealth has spread, and it is set for further growth. However, these developments have made the domestic market an attractive target for foreign suppliers. Imports are rising and the domestic market has been well supplied by cheap imports from China. Also, illegal imports appear to be a significant and growing problem. Looking ahead, there are ambitious plans for further expansion of the textile and clothing industry in Indonesia.

The government is encouraging foreign investments and has set targets to increase the industry's share of global textile and clothing trade by 2020. A recent study looks at the development of textile and clothing industry in Indonesia, its size and structure, textile and clothing production, and production technology and machinery. The report also features: a geographical, political and economic profile-detailed analysis of the country's imports and exports; a review of government policies, investment incentives and foreign investments; an analysis of the industry's strengths, weaknesses, opportunities and threats (SWOT); and insight into Indonesia's infrastructure and human resources and how these affect the textile and clothing industry.