Indonesia Textile Industry Remains Stable Amid Global Pressure

RRI.CO.ID, Jakarta - The government, through the Directorate of Textile, Leather, and Footwear Industries at the Ministry of Industry, emphasized that the national textile and textile products (TPT) industry continues to operate relatively stably, despite global dynamics affecting raw material prices and availability.

“We continue to closely monitor global raw material price fluctuations impacting the national TPT industry, while strengthening coordination to ensure raw material availability and smooth supply chains,” Minister of Industr, Agus Gumiwang Kartasasmita conveyed in a statement in Jakarta on Tuesday, April 21, 2026.

During a coordination meeting with industry associations and business players, it was identified that the main pressure currently stems from rising global prices of energy-based raw materials. Domestic paraxylene (PX) prices, for example, have increased by around 40 percent in line with international price movements. Meanwhile, the supply of chemical raw materials such as monoethylene glycol (MEG) remains secure through April, although further monitoring is needed for the period beyond.

These price increases naturally affect cost structures across the production chain, from upstream to downstream industries. This also impacts the prices of fabrics and intermediate products, as well as supporting components such as plastic-based packaging. Additionally, in some cases, adjustments in export activities have been observed, including product returns due to global market dynamics.

Nevertheless, the national industry has demonstrated strong adaptability. Businesses continue to sustain production through inventory management, procurement strategy adjustments, and strengthened coordination with raw material suppliers. Domestic demand remains active, while export opportunities are still open amid changing conditions in competing countries.

Director of Textile, Leather, and Footwear Industries Rizky Aditya Wijaya stated that in strengthening the industrial structure, rayon fiber—derived from domestic natural resources—serves as an important pillar in maintaining industry balance.

“Amid pressures on petrochemical-based raw materials such as polyester, the utilization of domestically produced rayon provides a competitive alternative while strengthening industrial independence,” he said.

Rizky added that the synergy between natural and synthetic fibers is part of the national industry’s adaptation strategy in responding to global dynamics, while maintaining production sustainability in downstream sectors.

Furthermore, he noted that certain subsectors require greater attention, particularly industries dependent on specific raw materials without substitutes. For example, the hygiene industry, such as diaper production, relies heavily on key components, making the availability of each material crucial for maintaining production continuity.

Therefore, the government and industry players view the current period as a critical phase to observe the ongoing impacts of global dynamics. Preventive measures continue to be implemented, including mapping critical raw material commodities and early identification of potential risks to ensure industry readiness for various scenarios.

As part of efforts to strengthen policy responses, the Ministry of Industry is developing an integrated monitoring system for real-time data-based analysis. In addition, various policy options are being comprehensively assessed, including fiscal incentives for strategic raw materials, energy efficiency support, and adjustments to trade policies to maintain supply stability.

The government also emphasized the importance of policy synchronization across tariffs, fiscal facilities, energy, and trade instruments to support balance across the industrial value chain from upstream to downstream.

“Our TPT industry has a strong foundation in terms of structure, domestic market, and experience in facing global cycles. With measured anticipatory steps and close collaboration, we are optimistic this industry will continue to grow and become more resilient,” he said.

The government and industry stakeholders remain committed to maintaining raw material supply stability, strengthening industrial competitiveness, and ensuring production continuity in both the short and medium term.