Textile Industry Struggles Despite Rising Consumption as Imports Flood the Market
JAKARTA, KOMPAS.com – The Ministry of Industry has stated that the textile and textile products (TPT) industry will face pressure in 2025. This occurs at a time when household consumption of clothing, footwear, and related services is increasing.
The Ministry of Industry’s spokesperson, Febri Hendri Antoni Arief, said that data from the Central Statistics Agency shows that household consumption of clothing will reach 4.52% in 2025. This is an increase from 2.73% in 2024.
“In 2025, the clothing industry, which is oriented towards the domestic market, will experience a contraction in its Industrial Confidence Index (IKI),” said Febri during a press conference at his office in Jakarta, Thursday (February 26, 2026).
The increase in household consumption is not having a positive impact on the domestic industry.
“We assess that the increase in household consumption of clothing, footwear, and related services is being met by imported products,” said Febri.
The Ministry of Industry hopes that the momentum of Eid al-Fitr will boost demand that can be absorbed by the domestic industry.
Data from the Ministry of Industry shows that the value of the Industrial Confidence Index for the export-oriented sector in February 2026 was 54.61. This figure is slightly slower than in January, which was recorded at 54.62.
The industry oriented towards the domestic market is also slowing down. The IKI value was recorded at 53.12 in February 2026, down 0.13 points from 53.25 in January.
“The rate of general business activity in February 2026 has slightly decreased,” said Febri.
The Ministry of Industry recorded that 33% of industries stated that business conditions had improved in February 2026. This figure is up 0.3% compared to January.
As many as 44.3% of industries stated that conditions were stable. Meanwhile, 22.4% stated that business conditions had deteriorated.
“Business optimism still shows an increasing trend in optimism over the past 8 months, at 73.5%, an increase of 1%,” he said.
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