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View all search resultsRising exports offer new hope for textile industry
Indonesia’s textile exports are expected to grow by up to 4 percent in 2027, but weak supply-chain integration and outdated machinery are keeping the the industry from reaching its full potential.
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Workers produce clothes on Oct. 29, 2025, at the Tectona textile factory in Pameungpeuk, Bandung Regency, West Java. (Antara/Raisan Al Farisi)
T
he Indonesian Export Financing Institution (LPEI) projects a 2 to 3.2 percent increase in textile exports this year and 3.5 percent to 4 percent in 2027 as global demand recovers, but manufacturers need modernized machinery and greater efficiency to capitalize on the improving market.
Finished fabric products account for around 74 percent of the country’s total textile and textile products (TPT) exports, according to the LPEI, which says sustaining the export performance will depend on strengthening supply chains as global buyers increasingly demand quality, timely delivery, traceability, compliance with international standards and sustainable materials.
“The projection for textile export growth in 2026 and 2027 is based on a gradual recovery in demand, particularly for textile and apparel products that have added value, consistent quality and sustained orders,” LPEI executive director Sukatmo Padmosukarso told The Jakarta Post on Aug. 7.
“Demand for sustainable textile products, particularly in the premium segment, is also expected to continue increasing and become one of the new sources of growth for Indonesia’s exports.”
The LPEI said global demand for upstream textile products, including yarn and woven and knitted fabrics, had begun recovering in 2025, with Japan, Turkey, Bangladesh, China and the United States expected to remain key markets.
Growing garment industries in Bangladesh and Vietnam could also create opportunities for Indonesian textile materials to enter global supply chains, although competition from China, India, Vietnam and Turkey, changing trade policies and uneven global demand remain key risks.
“Industries that are able to adapt to buyer needs and enter higher-value segments are expected to have greater opportunities to capitalize on the recovery in demand and strengthen exports sustainably,” he said.
