Jakarta. Indonesia’s textile and textile products (TPT) industry remains strong, efficient, and globally competitive -- far from being a “sunset industry,” Industry Minister Agus Gumiwang Kartasasmita said on Sunday.

Since President Prabowo Subianto took office in October last year, the sector has recorded 5.39 percent growth through the third quarter of 2025, contributing nearly 1 percent to the nation’s GDP, Agus said.

He noted that Indonesia now ranks among the world’s top five most efficient textile producers, outperforming several major manufacturing economies.

“In yarn spinning, Indonesia’s production cost is around $2.71 per kilogram -- more efficient than India, China, and Türkiye, and on par with Vietnam and Bangladesh,” he said.

“In weaving, the cost stands at $8.84 per meter, among the lowest globally, while fabric finishing costs just $1.16 per meter, lower than most regional competitors.”

Agus said these figures demonstrate Indonesia’s robust global competitiveness and form a solid foundation for future growth.

He claimed that in an era of climate challenges, geopolitical shifts, digital disruption, and supply chain restructuring, Indonesia’s textile industry still has vast room to expand.

According to him, the combination of abundant resources, adaptive industrial policies, and skilled human capital positions Indonesia as a trusted global textile partner for sustainable and innovative growth.

“Indonesia is ready to become a center of innovation, manufacturing, and sustainable growth for the global textile industry,” Agus emphasized.

The government, he added, continues to introduce reforms to simplify investment procedures and strengthen industrial confidence. These include streamlining the Online Single Submission (OSS) licensing system for faster, more transparent, and predictable approvals.

The Industry Ministry has also launched a machinery and equipment restructuring program to replace outdated production tools with energy-efficient, modern technology.

Other initiatives include easier access to credit for labor-intensive industries, priority access to capital goods imports, and fiscal incentives such as tax reductions for companies investing in research and development, Agus said.

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