Indonesia Textile Manufacturing Market Size, Share, Industry Outlook and Analysis Report 2025-2033

Indonesia Textile Manufacturing Market Overview

The Indonesia textile manufacturing market size was valued at USD 39.93 Billion in 2024. It is projected to reach USD 62.42 Billion by 2033, exhibiting a CAGR of 5.09% during the forecast period of 2025-2033. The market growth is driven by Indonesia's status as a leading global textile exporter, competitive labor costs, and a well-developed manufacturing base. Increasing domestic and global demand, especially for apparel and home textiles, along with government policies promoting sustainability and competitiveness, further support market expansion.

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Indonesia Textile Manufacturing Market Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024

Indonesia Textile Manufacturing Market Key Takeaways

• Current Market Size: USD 39.93 Billion in 2024
• CAGR: 5.09%
• Forecast Period: 2025-2033

Key Insights:

• Indonesia's large and youthful population supports rising domestic demand.
• Government policies provide incentives, subsidies, and ease of doing business in the textile sector.
• Increasing consumer preference for sustainable textile products with 43% of Indonesian consumers buying sustainable products as of 2024.
• Strategic location in Southeast Asia facilitates access to regional and international markets.
• Investment in technological innovations such as automation and digitalization improves competitiveness.

Indonesia Textile Manufacturing Market Growth Factors

The Indonesia textile manufacturing market is propelled by robust government support through policies offering incentives, subsidies, and facilitating ease of business operations within the sector. These supportive measures enhance competitiveness and attract both domestic and foreign investments, catalyzing capacity expansions and modernization in textile manufacturing processes.

Rising domestic and global demand significantly fuel market growth. With Indonesia's growing middle-class population and approximately 270 million residents, many of whom are young and fashion-conscious, there is a substantial increase in apparel and home textile consumption. The expansion of e-commerce and digital retail platforms has further widened market accessibility, particularly among younger consumers.

Technological advancements including automation, digitalization, and workforce upskilling help manufacturers improve productivity and produce high-quality textile products. These innovations enable Indonesian textile manufacturers to meet stringent international standards and supply diverse textile product demands efficiently, bolstering export potential and sustaining market expansion.

Indonesia Textile Manufacturing Market Trends

The industry benefits from the abundant availability of natural raw materials such as cotton, rayon, kapok, and bamboo, supported by Indonesia's vast agricultural land and domestic wood pulp industries. The country is a significant global producer of viscose rayon, essential for textile manufacturing, reducing dependency on volatile global markets. Government initiatives promoting vertical integration enhance raw material self-sufficiency, attracting foreign investment and increasing competitiveness.

Growing demand for diverse textile products originates from both domestic and international markets. The domestic market accounts for 70% of production consumption, fueled by fashion-conscious consumers and expanding e-commerce. Internationally, Indonesia exports roughly 30% of its textile products to Asia, Europe, and North America. Government trade agreements and modernization efforts further strengthen Indonesia's market reach.

Sustainability is an emerging trend, with manufacturers adopting eco-friendly production methods such as using organic materials and biomass fuel. Notably, South Korea-based Win Textile replaced coal with palm kernel shells at its Indonesian facility as part of a 'Coal Zero' initiative. Partnerships promoting green certifications and traceable, low-carbon supply chains are accelerating sustainable practices, enhancing market resilience and global competitiveness.

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Indonesia Textile Manufacturing Market Segmentation
Analysis by Process Type:

• Spinning: Converts raw fibers into yarn, fundamental for textile production. Supported by strong fiber supplies, enabling large-scale operations primarily in Java and Sumatra.
• Weaving: Produces woven fabrics using traditional and mechanized looms, significant in West and Central Java for exports and domestic consumption.
• Knitting: Expanding segment focused on casualwear and sportswear fabrics, with growth in Bandung and Tangerang driven by demand for breathable, flexible textiles.
• Finishing: Not elaborated in detail but essential downstream process.
• Others: Additional unspecified processes contributing to the ecosystem.
Analysis by Textile Type:
• Fiber: Base raw material including natural (cotton, rayon) and synthetic fibers. Indonesia is a leading viscose rayon producer.
• Yarn: Intermediate product produced from fibers, supplying weaving and knitting sectors, also exported.
• Fabric: Most visible textile type, produced via weaving, knitting, or non-woven processes, ranging from traditional cultural fabrics to industrial uses.
• Garments: Finished textile products for apparel.
• Others: Additional textile products.
Analysis by Equipment and Machinery:
• Simple Machines: Small-scale traditional equipment used in artisan and cottage industries, vital for cultural preservation.
• Automated Machines: Enhance mass production with improved quality and productivity, including computer looms and automatic knitting machines.
• Console/Assembly Line Installations: Highly automated systems used in large factories for integrated processing, enabling efficient mass garment production and quality control.

Indonesia Textile Manufacturing Market Regional Insights
• Java
• Sumatra
• Kalimantan
• Sulawesi
• Others

Regional Insights: Java is the dominant production base with the highest number of units, skilled labor, and infrastructure, particularly in West and Central Java. It supports robust market growth and innovation. Other regions like Sumatra, Kalimantan, and Sulawesi contribute through natural resource availability, emerging industrial hubs, and cultural textile production, adding geographic diversification. The market is forecasted at a CAGR of 5.09% during 2025-2033.

Indonesia Textile Manufacturing Market Recent Developments & News

• April 2025: PT Xinfung Industry Indonesia started a USD 30 million textile manufacturing plant producing sustainable fibers and yarns for the Southeast Asian market.
• March 2025: Nanshan Fashion announced a new apparel production facility in Galang Batang SEZ aiming for 160,000 units annually targeting exports to US, EU, Japan, and Russia.
• April 2024: DBS Bank Indonesia partnered with PT Indo-Rama Synthetics Tbk with a USD 10 million credit to connect to the national grid and a USD 20 million Sustainability-Linked Trade Finance promoting decarbonization.
• September 2023: The Lenzing Group expanded manufacturing of certified viscose fibers in Indonesia to meet eco-conscious customer demand.

Indonesia Textile Manufacturing Market Competitor Landscape

The textile manufacturing market in Indonesia features a mix of established domestic players and modernizers. There is intense competition in spinning, weaving, dyeing, and garment segments. Companies focus on vertical integration and sustainability initiatives to maintain competitiveness. Export-oriented manufacturers leverage technology and compliance improvements, while domestic-focused firms capitalize on Indonesia's large population and growing middle class. The report includes comprehensive competitive profiles.

Key companies include:
• PT Xinfung Industry Indonesia
• Nanshan Fashion
• PT Indo-Rama Synthetics Tbk
• The Lenzing Group

Indonesia Textile Manufacturing Market Key Highlights of the Report

• Comprehensive analysis of historical and forecast market trends from 2019 to 2033.
• Detailed segmentation by process type, textile type, equipment and machinery, and region.
• Insightful Porter's Five Forces analysis for competitive environment assessment.
• Thorough competitive landscape with company profiles and recent developments.
• Coverage of key growth drivers, trends, and challenges influencing market dynamics.
• Provides quantitative data aiding strategic business decision-making.

Indonesia Textile Manufacturing Market Key Players

• PT Xinfung Industry Indonesia
• Nanshan Fashion
• PT Indo-Rama Synthetics Tbk
• The Lenzing Group

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