Market Size of Indonesia Textiles Industry
Study Period | 2020-2029 |
Market Size (2024) | USD 13.83 Billion |
Market Size (2029) | USD 18.10 Billion |
CAGR (2024 - 2029) | > 5.54 % |
Fastest Growing Market | Asia Pacific |
Largest Market | Europe |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Indonesia Textile Market Analysis
The Indonesia Textiles Market size is estimated at USD 13.83 billion in 2024, and is expected to reach USD 18.10 billion by 2029, growing at a CAGR of greater than 5.54% during the forecast period (2024-2029).
- As per experts, by 2022, the clothing sector in Indonesia is predicted to rise by about 10.45%. The demand is barely 75% of its pre-COVID-19 levels, though. In recent decades, Indonesia's modest apparel market has experienced tremendous growth. Modest fashion has emerged as a fascinating subject among the wearers of the modern world. Indonesian modest fashion encompasses a variety of trends and styles. It draws inspiration from global elements while retaining a regional heritage and feels.
- Indonesia's membership in the trade agreement known as the Regional Comprehensive Economic Partnership (RCEP) has received approval from the country's parliament. The nation anticipates increased trade and FDI in several industries. Although the government's policies might not support cooperation within the block, the Indonesian textile industry may also hope for increased investment.
- Indonesia is a significant supplier of textile goods to several RCEP member nations, including Australia, Japan, New Zealand, South Korea, and Singapore. Indonesia would have improved access to member countries' markets with RCEP membership. It implies that the textile industry in Indonesia may anticipate increased exports. However, given that Indonesia has adopted a strategy to prohibit the export of raw materials and intermediary products, synergy may not develop among the bloc's textile-exporting nations. The RCEP nations that compete with the Indonesian textile industry are Thailand, Vietnam, Myanmar, the Philippines, and Cambodia.
- According to the West Java Province Textile Product Businesses Association (PPTPJB), 14 West Javan cities and regencies have received complaints of worker layoffs. Sixty-four thousand employees from 124 textile companies were put off two weeks ago. The reduction in consumer spending, notably in the biggest export-destination nations like the United States and Europe, led to layoffs. The demand in one of the factory outlets in Bogor Regency has decreased by 50% since April 2022. The circumstances have become challenging. The market fluctuated in the months that followed before falling as much as 70%.