Industry Minister Asserts Indonesia's Textile Industry is Not a Sunset Sector, Presents Evidence
Jakarta, CNBC Indonesia - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita has emphasised that the national textile and textile products (TPT) industry is not a sinking or “sunset” industry.
He even suspects the narrative of “Indonesia’s textile industry is sunset” as a ploy to open the floodgates for textile imports as widely as possible.
Agus explained that the performance of the national TPT industry in recent times has been monitored as stable. Growth remains maintained despite facing external pressures, while also demonstrating the resilience of this labour-intensive manufacturing sector.
“Throughout 2025, this sector recorded annual growth of 3.55 per cent, with export value reaching USD 12.08 billion and a surplus of USD 3.45 billion, primarily contributed by ready-made garment exports,” said Agus in Jakarta on Wednesday (15/4/2026).
From an investment perspective, business interest in this industry remains strong. This serves as an important indicator that the prospects of the TPT sector are still promising.
“The TPT industry succeeded in attracting investments of Rp20.23 trillion, reflecting sustained confidence among business players amid global uncertainties,” he added.
In addition, the national TPT sector is recognised as remaining the backbone of labour absorption in the national processing industry.
“From a labour perspective, this sector absorbs 3.96 million workers or around 19.48 per cent of the total workforce in the processing industry sector,” Agus revealed.
Therefore, he firmly stated, the government is not turning a blind eye to the various challenges that still loom. From rising raw material prices to global demand dynamics, these are factors that must be anticipated together.
“We understand the challenges are not light, starting from global raw material price increases, supply chain disruptions, to international market demand dynamics. This needs to be responded to through strengthened cooperation between the government, API, and business players so that anticipatory steps can be taken carefully and measurably,” he emphasised.
Since the Jokowi Era
On that occasion, Agus recounted when he was first appointed as Minister of Industry by Indonesia’s 7th President, Joko Widodo (Jokowi). At that time, he said, the narrative emerged that the textile industry was a sunset industry.
“I was assigned by then-President Jokowi about seven years ago as Minister of Industry. I received reports that Indonesia’s TPT sector was in a sunset industry phase,” he stated.
“I shook my head in disbelief; I suspected that narrative was created to flood the domestic market from abroad,” Agus asserted.
The government then took steps together with industry players and associations to reverse that condition. More adaptive policies are said to be efforts to maintain the competitiveness of this sector.
“With cooperation between the government, business players, and associations, and prioritising smart policies, we can start to turn that narrative around. We must dare to say that this sector is not sunset, but a sunrise sector,” said Agus.