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Stake Holder : Textile Industry Needs Fundamental Changes

Until now, the textile industry and textile products are still the government's mainstay in absorbing labor, meeting domestic needs and generating foreign exchange. However, in the last 10 years this sector seems to have been neglected until it has experienced stagnation in growth and a downward trend in net foreign exchange where export growth averages only about 2% while import growth reaches 9%, this sector seems to have been held hostage by import activities.

Enny Sri Hartati
Senior Researcher INDEF
(Institute for Development of Economic and Finance)

Apart from encouraging people's purchasing power which has decreased due to the pandemic, it is no less important to protect the domestic market from the onslaught of imports in order to optimize the momentum of Eid to become an economic lever.

Redma Gita Wirawasta

  • SG Indonesia Fiber and Filament Producer Association
  • SG Asia Chemical Fiber Industry Federation
  • VC Indonesia Textiles Expert

The performance of the national textile industry continues to lag behind competing countries due to misdirected trade policies in the last 10 years. The import relaxation policy in order to encourage exports, not only suppressed the trade balance but also suppressed investment which resulted in several companies going out of business and laying off their employees in 2018-2019. This condition irritated President Jokowi so that several times ordered imports only for products that were really needed. For this reason, the Ministry of Industry has set a target of 35% import substitution by 2023.


Prof. Ina Primiana

  • Professor of FEB UNPAD
  • Senior Economist of CORE Indonesia

The textile and textile products (TPT) industry are contributing to the national trade surplus with the largest absorption of labour. The strength of the textile industry in Indonesia is the integration of the industry from upstream to downstream. But currently TPT entrepreneurs are faced with various serious problems, if the problems faced are not immediately sought for a solution, the TPT industry will experience a collapse which of course results in increased unemployment. Currently, the number of workers working in the textile industry until 2019 has reached 2.83 million people. One of the problems faced by the textile industry is due to the preferential treatment of importers compared to exporters or local market entrepreneurs.