INDONESIA TEXTILE MANUFACTURING INDUSTRY - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2022-2027)

The Indonesia Textile Manufacturing Market is segmented by Textile Type (Fiber, Yarn, Fabric, Garment, and Other Textiles ), Process Type (Spinning, Weaving, Knitting, Finishing, and Other Process Types), and Machinery Type (Simple Machines, Automated Machines, and Console/ Assembly Line Installations). The report offers market size and forecasts for the Indonesian textile manufacturing market in value (USD billion) for all the above segments.

Market Snapshot

market-snapshot
Study Period: 2022-2027
Base Year: 2021
CAGR: >5 %

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Market Overview

The Indonesian textiles Industry is expected to record a CAGR of greater than 5% during the forecast period.

The textile manufacturing sector in Indonesia is a highly unorganized sector, and COVID-19 has adversely affected the industry (which has led to an estimated 65% of textile workers being sent home temporarily ). Plummeting sales, closed factories, and lower wages are some of the problems, according to Indonesia's Industry Ministry.

An increase in exportation to major countries like the United States, the European Nations, and the Middle East has led to the rapid development of the Textile Manufacturing Industry. High dependency on imported raw materials is likely to act as a restraint for the market. To expand the Indonesian Textile Manufacturing Industry, the Indonesian government has encouraged Textile Product Industry ( TPT ) to explore the fashion industry and meet its demand, which will open many new opportunities for this industry during the forecast period.

On April 13, 2021, the Indonesia Industry Ministry introduced the textile industry with new advanced technologies and the renewal of machinery. Numerous facilities for structurization are given to the textile industry, which will boost their efficiency and competitiveness. The ministry has already conducted technical training and training for transformation managers in developing the Indonesia Smart Textile Industry Hub (ISTIH). Under this industrial revolution, the exports in 2020 reached USD 33.99 billion. Investments of USD 61.97 trillion were also realized during the period.

As COVID-19 had hit the business very adversely, the industry was getting declined. However, the sector's performance is now bouncing back and is expected to continue the trend during the forecast period. Textile exports between January and October in 2021 also increased by 19%, and investment in the textile industry also rose by 12% to USD 5.06 trillion.

Scope of the Report

Textile refers to materials that are made from fibers, thin threads, or filaments which are natural or manufactured, or a combination. Textiles are created by interlocking these yarns in specific patterns resulting in a length of cloth. The textile fibers are spun into yarn and then made into fabric by different methods like weaving, knitting, and felting. The Indonesian textile manufacturing market is segmented by textile type (fiber, yarn, fabric, garment, and other textiles ), process type (spinning, weaving, knitting, finishing, and other process types), and machinery type (simple machines, automated machines, and console/ assembly line installations). The report offers market size and forecasts for the Indonesian textile manufacturing market in value (USD billion) for all the above segments.

By Process Type
Spinning
Weaving
Knitting
Finishing
Other Process Types
By Textile Type
Fiber
Yarn
Fabric
Garments
Other Textile Types
By Equipment and Machinery
Simple Machines
Automated Machines
Console/Assembly Line Installations

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Key Market Trends

Increase in Exports, Driven by the Trade Agreements, to Drive the Market

Indonesia's textile industry is one of the top ten contributors to nation's manufacturing sector, accounting for 6.7 % of total production. Indonesia is 12th among the leading textiles and apparel exporters in the Association of Southeast Asian Nations (ASEAN) region.

Indonesian textile products are shipped in huge amounts to the Middle East and Africa, which has created a notable positive impact on the textile manufacturing market in Indonesia. The country is trying to expand its trade with the Muslim world to tap new export markets and boost trade. The Muslim world has started giving preference to Indonesia for textiles against China.

The country's stable economy, efforts in expansion, and efforts to meet new-fashion demands are some of the factors that have attracted more investment in this industry. Australia and Indonesia have signed the Indonesia-Australia Comprehensive Economic Partnership Agreement. It is reported that the textile industry of Indonesia is expected to benefit the most from the agreement. An increase in exportation to major countries like the United States, the European Nations, and the Middle East has led to the rapid development of the textile manufacturing industry.

Most significantly, from 2021, the textile industry in Indonesia has undergone a massive expansion. Indonesia has made significant economic strides in the recent year 2021 as a result of its fast-expanding industrial sector. The country now is poised to outpace Thailand and Malaysia as a major regional manufacturing and export hub, and investors are increasingly choosing Indonesia over China, Thailand, and Malaysia, drawn in by the country’s relative stability, sizeable low-cost labor pool, and large domestic market.

t2

Growing Urbanization is Driving the Market

Indonesia's home textile market is anticipated to grow at an increased rate due to the growing fashion sensitivity of urban consumers. Rapid urbanization and industrialization have resulted in improvements in the standard of living along with an increase in the disposable income of the population. These are some factors projected to support the revenue growth of the Indonesian textile manufacturing industry.

The country's population is expected to climb much higher. Indonesian Ministry reports also state that the birth rate in Indonesia is much higher than the death rate (except during the COVID-19 period). This is the major reason for population growth in Indonesia.

With the increase in population and the accompanying changes in consumer trends, the demand for different variety of textiles is expected to surge. With the increasing availability of wide varieties of clothing in every sector and for every purpose with different fabrics availability, the market is gaining strong attraction among consumers. Consumers want to explore the market for different varieties and cost availability options.

T2

Competitive Landscape

The Indonesian textile manufacturing industry is highly fragmented in nature, with the dominance of a large number of local and international players in the market. The key players in the market occupy less than 40 % of the total market share. The key players in the Indonesian Textile Manufacturing Industry market are PT. Asia Pacific Fibers Tbk, Indorama Corporation (PT. Indo-Rama Synthetics TBK), PT. Sri Rejeki Isman TBK, PT. Tifico Fiber Indonesia TBK, PT. Pan Brothers TBK and other companies.

Major Players

  1. PT Asia Pacific Fibers TBK

  2. Indo - Rama synthetics TBK

  3. PT Sri Rejeki Isman TBK

  4. PT Tifico Fiber Indonesia TBK

  5. PT Pan Brothers TBK

Indonesia market concentration.png

Recent Developments

  • In March 2021, PT Pan Brothers PTK announced its collaboration with the US Trust Cotton protocol. The main aim of this collaboration is that PT.Pan Brothers PTK wants to ensure their customers that they have approved supply chain partners for brands and retailers who are sourcing more sustainably grown cotton. A combination of a unique credit accounting system and the Permanent Bale Identification (PBI) system enables brands to have transparency throughout the supply chain to finished products.
  • In January 2022, Toray Industries of Indonesia declared its collaboration with Soramitsu Company of Japan, which is a blockchain-based company. The main aim behind this collaboration is that the Toray Industries want to focus on integrating proprietary recycling of fabrics, biomass, and other sustainable technologies that can contribute to a closed-loop economy means reusing fabrics. It also looks to integrate its product supply chain with Soramitsu’s blockchain technologies to enhance traceability in product collection, reuse, and other processes. Such an approach would help engage all supply chain stakeholders in achieving a closed-loop economy.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints/Challenges

    4. 4.4 Market Opportunities

    5. 4.5 Value Chain/Supply Chain Analysis

    6. 4.6 Porter's Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

    7. 4.7 Technological Innovations in the industry

    8. 4.8 Impact of COVID - 19 on the Industry

    9. 4.9 Government Initiatives to Attract Investment in the Industry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Process Type

      1. 5.1.1 Spinning

      2. 5.1.2 Weaving

      3. 5.1.3 Knitting

      4. 5.1.4 Finishing

      5. 5.1.5 Other Process Types

    2. 5.2 By Textile Type

      1. 5.2.1 Fiber

      2. 5.2.2 Yarn

      3. 5.2.3 Fabric

      4. 5.2.4 Garments

      5. 5.2.5 Other Textile Types

    3. 5.3 By Equipment and Machinery

      1. 5.3.1 Simple Machines

      2. 5.3.2 Automated Machines

      3. 5.3.3 Console/Assembly Line Installations

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Competition Overview

    2. 6.2 Company Profiles

      1. 6.2.1 PT Asia Pacific Fibres TBK

      2. 6.2.2 Indo - Rama Synthetics TBK

      3. 6.2.3 PT Sri Rejeki Isman TBK

      4. 6.2.4 PT Tifico Fiber Indonesia TBK

      5. 6.2.5 PT Pan Brothers TBK

      6. 6.2.6 PT Ever Shine Tex TBK

      7. 6.2.7 PT Trisula Textile Industries TBK

      8. 6.2.8 PT Century Textile Industry TBK (Toray Industries)

      9. 6.2.9 PT Polychem Indonesia TBK

      10. 6.2.10 PT Indo Kordsa TBk

      11. 6.2.11 PT Panasia Group

      12. 6.2.12 PT Tyfountex Indonesia

      13. 6.2.13 PT Eratex Djaja TBK

      14. 6.2.14 PT Argo Pantes TBK*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. APPENDIX

**Subject to Availability
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Frequently Asked Questions

The Indonesia Textile Manufacturing Market market is studied from 2022 - 2027.

The Indonesia Textile Manufacturing Market is growing at a CAGR of >5% over the next 5 years.

PT Asia Pacific Fibers TBK, Indo - Rama synthetics TBK, PT Sri Rejeki Isman TBK, PT Tifico Fiber Indonesia TBK, PT Pan Brothers TBK are the major companies operating in Indonesia Textile Manufacturing Market.

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