The textile, apparel, and footwear industries still have room to grow. This is due in part to Indonesia's large population and significant export opportunities.
Data shows that in 2024, the growth rates for the textile, apparel, and leather and leather goods industries were 0.09%, 5.78%, and 6.83%, respectively. This performance has also been supported by a significant increase in investment, both from Foreign Direct Investment (FDI) and Domestic Investment (DI).
In 2023, total investment in this sector reached IDR 29.92 trillion, and in 2024, it rose sharply by 31.1% to IDR 39.21 trillion.
This increase in investment reflects investor confidence in the prospects of Indonesia's textile, apparel, and footwear industries. Especially in the apparel industry, which is labor-intensive, investment rose significantly from IDR 4.53 trillion in 2023 to IDR 10.20 trillion in 2024, an increase of 124.9%," said Rizky Aditya Wijaya, Director of Textile, Leather, and Footwear Industries at the Ministry of Industry, in his statement.
During the first quarter of 2025 (January–March), the Directorate of Textile, Leather, and Footwear Industries issued Business Certificates (SKU) for four textile and apparel companies, with a total investment of IDR 304.43 billion, which is expected to create 1,907 jobs.
Furthermore, with Indonesia's large population of 281.6 million, the prospects for the textile and footwear industries are still considered promising. Between March 2020 and March 2024, the average monthly per capita spending of Indonesians on clothing, footwear, and headwear reached IDR 35,457, making the potential domestic market value approximately IDR 119.82 trillion.
In addition, export opportunities are increasingly wide open. A new tariff policy imposed by the United States on Canada, Mexico, and the People’s Republic of China (PRC) presents a strategic opportunity for Indonesia to expand its market share in the U.S. In 2024, total U.S. imports of apparel and footwear reached USD 138.19 billion, with China dominating at USD 38.04 billion (29.2%). Meanwhile, Indonesia’s exports to the U.S. in the same year reached USD 7.11 billion, or around 5.5% of total U.S. imports.
"Indonesia recorded a 7.5% increase in apparel and footwear exports to the United States—from USD 6.61 billion in 2023 to USD 7.11 billion in 2024. With the recent tariff policy changes in the U.S., our export opportunities are expanding, and this presents a valuable chance for our domestic industry to enhance its competitiveness in the global market," he added.
Source : Detikfinance.com