Indonesia wants to enter the top five ranking of the world's largest textile (and textile products) exporters in the next couple of years. Currently, Indonesia is ranked tenth (controlling a global market share of 1.8 percent) far behind China that remains the clear world leader in terms of textile and garment production as well as export. Indonesia's Industry Ministry is in the middle of preparing several incentives that should bring Indonesia in the top five, including tax incentives and lower gas prices for export-oriented textile companies.

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Indonesia's textile and textile products industry remains under pressure this year. Exports of Indonesian textile and textile products are only expected to grow 1 percent to USD $12.3 billion in full-year 2016, below the 3 percent target that was set by the Indonesian Textile Association (API). API Chairman Ade Sudrajat said exports in the first quarter only reached USD $2.6 billion. Moreover, even on the domestic market Indonesia has trouble to compete with imports of cheap textile and textile products from Vietnam and China.

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Sri Rejeki Isman (Sritex), one of Indonesia's leading textile and garment manufacturers, plans to acquire a German military uniform manufacturer. Iwan Kurniawan Lukminto, Vice President Director of Sritex, said the acquisition of the German company should be completed in 2017. The aim of this acquisition is to enhance Sritex' business in the European Union. The German uniform manufacturer will be the "extended arm" of Sritex in Europe according to Lukminto's words. Currently, about 15 percent of Sritex' total export revenue is generated from shipments to Europe.

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The Investment Coordinating Board (BKPM), the investment service agency of the Indonesian government, claims it has prevented about 24,500 of layoffs through its special desk for footwear and textile industries. This special desk is an agency set up by the BKPM in early October 2015 to support local companies in the footwear and textile industries as these industries are considered most affected by the country's economic slowdown. BKPM Chairman Franky Sibarani said a total of 48 companies have requested support through this special desk.

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The government of Indonesia will announce a fourth stimulus package on Thursday (15/10). This new edition will focus on safeguarding employment in Indonesia. Due to the country's economic slowdown, concern about unemployment has risen. The Confederation of Indonesian Workers Unions (KSPSI) recently said that over 62,000 Indonesian workers lost their jobs during the first nine months of 2015.

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Andi Gani Nenawea, Chairman of the Confederation of All Indonesian Workers' Union (KSPSI), said that layoffs in Indonesia could reach up to 100,000 in 2015 as various companies are cutting on operational costs amid the nation’s slowing economic growth. The most severely affected industries are the textile industry and commodities (such as the coal and oil & gas sectors).

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According to Indonesia’s state news agency Antara, the United States (US) have become the largest export destination for Indonesian batik. Approximately 37 percent of Indonesia’s total batik export is shipped to the US, the world’s largest economy. Batik is a traditional textile produced by using a technique of wax-resist dyeing applied to cloth. Although several other countries also produce batik, the most well-known batik originates from the island of Java (batik was recognized as a World Cultural Heritage by the UNESCO in 2009).

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The FIFA World Cup 2014, the world’s most prestigious football tournament (currently taking place in Brazil), boosts the textile and textile products industry of Indonesia. Local Indonesian companies have had to deal with a large increase of orders, particularly for apparel products. In the first six months of 2014, Indonesian exports of apparel products are expected to rise 15 percent to USD $3.5 billion. Between 10 and 15 percent of this total value involves exports of football jerseys of those teams that compete in the FIFA World Cup.

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Per 14 November 2013, 24 Indonesian provinces have confirmed their new provincial minimum wage for the year 2014. As Indonesia numbers 34 provinces in total, 10 more provinces are expected to announce their new minimum wages soon. It is interesting to note that of the 24 provinces that have already published the new minimum wage, 11 provinces have set the minimum wage below the assumed need for decent living in the province, which implies that the minimum wage is not enough to finance a person's minimum monthly basic needs.

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Indonesia Investments has added the company profile of Sri Rejeki Isman, better known as Sritex, in the Indonesian Companies section. Sritex is a vertically integrated textile and garment producer in Indonesia. The company, Southeast Asia’s largest textile manufacturer, has four production units: spinning, weaving, dyeing and garment. Sritex manufactures yarn, greige, fabrics and apparel that are sold to textile producers and retailers in 55 countries across the globe.

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Indonesian exports of textile and textile products have already reached the value of USD $12.4 billion in 2017, exceeding the Indonesian Textile Association (API)'s target of USD $11.8 billion. The final (full-year) 2017 figure is expected to be higher as the last couple of weeks of 2017 are not included in the USD $12.4 billion. Robust textile demand from Southeast Asia and the Middle East was a decisive factor why the target was achieved.

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Foreign exchange earnings are important assets for a national economy. Therefore, many nations have recently been taking a much more protectionist approach vis-à-vis trade in an effort to strengthen their trade positions, generate trade surpluses, hence see the inflow of more foreign exchange earnings. Foreign exchange assets support a stable local currency as well as economy.

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There emerged rising competition on the textile market in the Asia-Pacific after wage growth occurred in the textile industries of China and Bangladesh. This situation should be positive for Indonesian textile and garment manufacturer Sri Rejeki Isman (Sritex) because rising production costs of foreign competitors improve the competitiveness of Sritex products.

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The batik industry of Indonesia has been under pressure. One stakeholder explained that this industry is currently facing five main challenges. Batik - recognized as a World Cultural Heritage by the UNESCO in 2009 - is traditional textile produced by using a technique of wax-resist dyeing applied to cloth. There are several countries (as well as several regions in Indonesia) that produce batik but the most famous batik originates from the island of Java.

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