Indonesia’s textile and garment sector has demonstrated solid momentum in the first half of 2026, recording exports worth $4.85 billion while continuing to support more than 3.8 million workers across the country. The sector’s scale and output reaffirm its central role in Indonesia’s broader industrial and economic landscape.
Adding to the positive outlook, the Industry Confidence Index held firm in the expansion zone, registering at 53.10 in July, a signal of improving industrial activity across the sector.
Investment and Output Growth Reinforce Sector Resilience
The recovery in Indonesia’s textile and garment sector is being further backed by growing investment interest. The industry attracted IDR 11.40 trillion in investments during the first half of 2026, marking an increase of 11.85 per cent compared to the same period a year earlier. Sector output also registered healthy growth, expanding 6.36 per cent year on year in the second quarter, according to industry reports.
These figures reflect a sector that continues to draw domestic and international capital even as global trade conditions remain competitive.
Government Commits to Supporting Competitiveness and Global Market Expansion
Kartasasmita confirmed that the government will continue engaging with industry associations, businesses, regional governments and relevant agencies to strengthen the sector’s competitiveness and support its expansion in international markets. Several policy measures are already in motion to back this commitment.
These measures include investment incentives, restructuring programmes, and access to labour-intensive industry credit. Export financing is being facilitated through the Indonesian Export Financing Agency, known as LPEI, while trade safeguard mechanisms are being reinforced. The government has also announced faster implementation of the Making Indonesia 4.0 programme, which targets the digital and technological transformation of key manufacturing industries including textiles.
Sustainability is another priority shaping the sector’s direction. The government is actively promoting Green Industry Standards, responding to growing demand from international buyers who increasingly factor environmental compliance into their sourcing decisions. Indonesia textile exports stand to benefit as global buyers prioritise suppliers that align with sustainability benchmarks.
Focus on Midstream Strengthening and Supply-Chain Integration
Beyond export performance and investment, the government has identified textile manufacturing as a key sector within its broader industrial transformation agenda. Particular attention is being directed toward strengthening the midstream segment, which encompasses yarn production, fabric manufacturing, dyeing, printing and finishing processes.
Improving these midstream capabilities is seen as essential to better supply-chain integration, which in turn supports the sector’s overall competitiveness. The Making Indonesia 4.0 programme plays a relevant role here as well, with its emphasis on modernising production processes across the manufacturing value chain.
With Indonesia textile exports on an upward trajectory, investment rising, and a comprehensive set of policy tools being deployed, the garment sector remains a cornerstone of the country’s industrial growth strategy heading into the second half of 2026.
