Indonesian Political, Business & Finance News

Industry Minister: Textile industry still has significant growth potential

| Source: ANTARA_ID Translated from Indonesian | Industry
Industry Minister: Textile industry still has significant growth potential
Image: ANTARA_ID

Industry Minister Agus Gumiwang Kartasasmita has said that the national textile and textile products industry still has significant growth potential amid the various challenges it faces.

“The textile and garment industry plays a very strategic role because it employs more than 3.8 million workers. Although some companies are facing pressure, at the same time there are also new investments and business expansions. This shows that the textile and textile products sector still has significant growth potential,” the Minister said in a statement confirmed in Jakarta on Tuesday.

He said his ministry will continue to strengthen synergy with business players, associations, regional governments, and relevant ministries and institutions to maximise the growth of the national textile and textile products industry.

“The government supports textile and textile products industry players in improving competitiveness and winning global competition. We will realise an Indonesian textile and textile products industry that is able to withstand change and grow more productively, innovatively, and sustainably,” the Minister concluded.

In addition, in line with the momentum of the 81st Anniversary of the Independence of the Republic of Indonesia, the textile and textile products industry continues to demonstrate its role in supporting economic development.

The sector is recorded as employing more than 3.8 million workers and posting export value of USD 4.85 billion in the first half of 2026.

According to him, this achievement demonstrates the role of the textile and garment sector as one of the important contributors to the national economy.

This optimism is also supported by the Industrial Confidence Index for July 2026, which remains at an expansion level of 53.10.

The Minister said that improvements in textile industry performance must also go hand in hand with transformation of production processes.

Therefore, to maximise the growth of this sector, his ministry continues to implement various policies, ranging from investment incentives, restructuring programmes, labour-intensive industry credit, and export financing from the Indonesia Eximbank.

Furthermore, strengthening trade safeguard policies, accelerating the implementation of Making Indonesia 4.0, and the application of Green Industry Standards.

“The world today does not only buy the product, but also looks at how the product is produced. It must be remembered that sustainability is no longer a burden, but rather an advantage in global competition,” he said.

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