AGTI Says Q2 TPT Industry Growth Strengthens Sector Optimism

The Indonesian Garment and Textile Association (AGTI) has stated that the national textile and garment industry’s growth of 6.36 percent year-on-year in the second quarter of 2026 strengthens optimism among business players, as the performance improved compared with growth of 4.86 percent in the first quarter of 2026.

“The industry’s growth, which increased from 4.86 percent to 6.36 percent, shows a positive direction. The textile and garment industry’s performance even grew higher than the national economy and non-oil and gas manufacturing,” said AGTI Secretary General Rizal Tanzil Rakhman in a written statement in Jakarta on Wednesday.

The stronger performance has gone hand in hand with the entry of new investment and the expansion of production capacity.

Based on announced investment projects, from 2025 until August 2026 six companies realised investments in four textile and garment industry projects in Central Java and West Java.

The six companies are PT Xinhai Knitting Indonesia, PT FHG Tekstil Indonesia, PT Citra Terus Makmur, PT Binkova Textiles Indonesia, PT Dafei Textile Indonesia, and PT Serendipity Fashion Indonesia. The total announced investment value reached around Rp2.7 trillion.

In addition, he continued, the incoming investment has not only enlarged production capacity but also strengthened the industry’s supply chain through the construction of modern manufacturing facilities and more integrated industrial clusters.

This investment trend is considered to show that Indonesia remains an attractive destination for the global textile industry, especially because it is supported by a large domestic market, a competitive labour base, and a strategic position in the regional supply chain.

“We are optimistic that this growth momentum can be maintained through synergy between the government and business players so that the textile and garment industry becomes more competitive in the global market,” said Rizal.