Bags / Shoes & Accessories

The current Indonesian textile industry is growing day by day, with an estimated revenue of 52 billion US dollars and a compound annual growth rate of 5.79% in 2024. It is expected that Indonesian middle-class consumers will double to 140 million by 2030, indicating strong domestic demand.

Import and export data shows that Indonesia holds a positive attitude towards textile imports, especially in China's textile industry. This year, Indonesia's imports of textiles and raw materials from China reached 4.08 billion US dollars.

1、 China is Indonesia's largest importer of textiles

Import and export data shows that in 2021, Indonesia imported approximately $2 million worth of clothing, clothing accessories, and fur products from China. South Korea followed closely with approximately $647500.

In addition, Indonesia has the fourth largest population in the world, and its large population base has brought enormous potential to Indonesia's domestic demand market, especially for the consumption of textile and clothing products. The textile industry can be said to be one of the main economic drivers in Indonesia.

At present, the largest segmented market in the Indonesian clothing industry is the women's clothing market. By 2023, the Indonesian women's clothing e-commerce market is expected to reach 1.9496 billion US dollars, accounting for 45.8% of the Indonesian clothing e-commerce market. It is expected to increase in the coming years. It is expected that the compound annual growth rate (CAGR 2023-2027) for the next four years will be 2.6%, and the market size is expected to reach $2.1605 billion by 2027.

2、 Indonesian Clothing Industry under Policy Protection

After COVID-19, the Indonesian government reiterated its commitment to support the recovery of the textile and textile products (TPT) industry.

Indonesian Industry Minister Agus Gumiwang Kartasasmita stated in a written statement that the textile industry is one of the industries severely affected by the pandemic. Therefore, the government will provide support through both fiscal and non-financial policies.

He said, "The government continues to support improving the investment and business environment by issuing multiple strategic policies in the form of fiscal and non-financial incentives to improve the performance of the textile industry.

At the same time, the government has also issued policies on operational liquidity and industrial activities (IOMKI), reducing gasoline prices, encouraging the implementation of circular economy and sustainable development in the textile industry, and improving human resources (HR) capabilities.

In order to protect small and medium-sized clothing manufacturers, Indonesia has begun to crack down on illegal import of second-hand clothing.

(Indonesian second-hand clothing market)

According to reports, illegally imported second-hand clothing accounts for 31% of the Indonesian clothing industry, leading the consumption demand of local people. In order to better protect the domestic textile, clothing, and footwear industries, as well as related small and medium-sized enterprises, the Indonesian government will take measures to eradicate the illegal import of second-hand clothing.

On the one hand, the government will coordinate with Indonesian customs and police to strengthen customs inspections, block smuggling routes of second-hand clothing, and impose penalties on enterprises selling illegally imported second-hand clothing. On the other hand, the Indonesian government will strictly monitor and punish the content and sales behavior of illegally imported second-hand clothing on online platforms (including social media, e-commerce platforms, etc.), and raise consumers' awareness of the safety risks of purchasing and using illegally imported second-hand clothing through promotional and educational activities.

3、 Women's clothing is the largest market, and the textile industry relies on the Chinese market for raw materials

Women's clothing is the largest market segment behind the $52 billion Indonesian textile industry.

According to merchants specializing in women's clothing in Indonesia, according to import and export data, the largest segmented market in the Indonesian clothing industry is the women's clothing market, with a market size of 8.567 billion US dollars in 2020.

At present, the Indonesian e-commerce industry is in a rapid development stage, and the company also has wired platforms, with up to 38% of its revenue coming from online sources.

Indonesian local clothing companies import women's clothing fabrics from China all year round, mainly in the categories of polyester, rayon, and chiffon.

Currently, the overall demand for women's clothing in Indonesia is very high. The Indonesian market is in a stage of rapid recovery after the epidemic, so they are in great need of large-scale imports to meet demand.

Meanwhile, local well-known wholesaler William is also actively seeking Chinese fabric partners. The company has its own physical and online stores, and currently has a significant shortage of fabrics, urgently seeking high-quality partner manufacturers.

4、 Huge potential for sports clothing and footwear consumption

According to import and export data, the population of Indonesia is close to 270 million, with approximately 43% of the population under the age of 25, with an average age of 28. The large population and youthful population structure are the main characteristics of Indonesia, which has gradually made sports a part of daily life for Indonesians.

According to data, the RSP of the Indonesian footwear and clothing market (including online and offline channels) is expected to exceed IDR 175.652 trillion by 2024, reaching a scale of nearly IDR 200 trillion (present value).

According to import and export data, Indonesia imported approximately $369.69 million worth of footwear from China in 2021. Vietnam followed closely with approximately $175.72 million. On the other hand, Indonesia's footwear exports are highest in the United States.