Indonesia's upstream textile industry needs to be strengthened with capital, technology and know-how, so that it can continue to provide goods of sufficient quality and quantity to the growing apparel industry. Achieving this poses a challenge for the country and an opportunity for investors.
Indonesia’s footwear industry remains a major contributor to the country’s economy thanks to its positive growth in the last five years. Despite many obstacles, ranging from labour costs and raw material availability to energy prices; the sector is still considered attractive by both foreign and domestic investors.
The footwear industry plays an increasingly important role in Indonesia's manufacturing sector. Producing shoes for many global brands, footwear manufacturers are a vital job creator and an important foreign exchange earner for the country.
The increased demand for Islamic clothing has encouraged the growth of the domestic Muslim fashion industry. In a relatively short time, muslimwear has become an important segment of Indonesia's textile industry.
The economic slowdown in 2015 in Indonesia is still having a painful impact on several industries. One of these is the textile and textile products sector. The performance of this industry is expected to remain sluggish throughout 2016 due to a lack of positive sentiment that might lift it out of its mire.
The sportswear industry in Indonesia has seen an increase in export sales and foreign investment in recent years. The relatively stable global demand, especially in developed countries, has helped fuel the growth of the industry.
Contribution to GDP: 20.41% (Q3 2015)
Sector Growth: 4.33% (yoy, Q3 2015)
Number Employed in the Sector: 16.38 million (February 2015)
Highest Minimum Wage by Province: 3,100,000 IDR/month (DKI Jakarta)
Lowest Minimum Wage by Province: 1,482,950 IDR/month (West Nusa Tenggara)
Main Areas: Automotive, Electronics, Textile & Garment, Footwear, Food & Beverages, Metal Products, Chemicals.
Main Export Markets: USA, Japan, China, Turkey, South Korea, Germany, Singapore, Thailand, Philippines, Saudi Arabia, Malaysia.
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