Textile Raw Material Prices Surge 40 Percent

The textile and textile products (TPT) industry is facing heavy pressure following a sharp surge in raw material prices. This is due to the conflict in the Middle East, which has driven global oil prices up to around US$110 per barrel.

Chairman of the Indonesian Filament Fibre and Yarn Producers Association, Redma Gita Wirawasta, stated that the price of paraxylene—the main raw material for polyester—has now reached US$1,300 per tonne. He said that figure represents an increase of around 40 percent in just the last two weeks.

“In the coming week, it will be felt by fabric producers, then in the following two weeks, it will reach the ready-made garment sector,” he said, quoted from a written statement on Tuesday, 7 April 2026.

Although the price surge is occurring upstream, the impact has not yet been fully felt by the downstream industry. Redma explained that the effects of the price increase will spread gradually over the next few weeks.

Redma said this price rise is also expected to affect the retail level. Prices for finished textile products could increase by up to 10 percent in line with adjustments to production costs.

Amid the price pressures, he stated that market demand remains relatively stable and even tends to increase because imported raw material prices have also risen, making local products more competitive. The availability of domestic raw materials such as polyester and rayon is also in a safe condition.

However, Redma said the industry’s condition has not fully recovered. The utilisation rate of national polyester producers is still below 40 percent, while rayon producers are at around 70 percent. Redma noted that many factories that have stopped operating have not returned to production due to market practices deemed unhealthy.

“Currently, surviving producers are only serving loyal customers. Meanwhile, users of imported raw materials are not yet a priority,” he said.