Indonesia’s textile & apparel sector shows strong recovery in 2026

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Indonesia’s textile and apparel industry is showing a stronger recovery trend throughout 2026 by recording above-average growth compared to non-oil and gas processing industries.

The industry also managed to attract investment of up to IDR 11.40 trillion in the first half of 2026, reflecting growing business confidence in the national industry’s prospects.

The textile and apparel industry’s performance in the second quarter of 2026 grew 6.36% year-on-year, exceeding the 4.35% growth recorded in the same period last year.

This achievement is considered a positive sign after the textile and apparel sector faced various pressures in recent years.

As of the second quarter of 2026, investment in the textile and apparel industry reached IDR 11.40 trillion, an 11.85% increase compared to the same period the previous year.

Of this, investment in the textile industry increased from IDR 6.05 trillion to IDR 6.78 trillion, while investment in the apparel industry rose from IDR 4.14 trillion to IDR 4.62 trillion.

Ian Syarif, Deputy Chairman of the Indonesian Textile Association (API), stated that this growth indicates that the textile and textile industry is entering a recovery phase, with increasing room for expansion.

He noted that the sector’s growth rate has even outpaced the national economy and the non-oil and gas processing industry.

He explained that the increase in industrial performance was supported by a number of factors, ranging from increased investment, increased exports, a trade balance surplus, to high employment absorption.

According to Ian, the increase in investments is an important indicator because it reflects business optimism regarding Indonesia’s market prospects and competitiveness as a textile production base.

The investment funds will be used to increase production capacity, modernize machinery, improve energy efficiency, and meet the demands of global market sustainability standards.

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