June 22, 2024
Industry

Indonesian Textile & Garment Industry Grows 2.64% In Q1

The Indonesian Ministry of Industry reported that the textile and apparel industry experienced a growth of 2.64 percent year on year in the first quarter of 2024, after facing huge stress in the previous year.

Textile and garment exports also grew marginally by 0.19 percent from a year ago quarter reaching US $2.95 billion in the first three months of 2024.

“This achievement is very impressive considering that the export market is still influenced by global economic uncertainties,” Taufiek Bawazier, Acting Director General in the Ministry of Industry said.

Apart from increasing exports, investment in the textile sector has also experienced a surge. Foreign direct investment rose by 70.2 percent reaching $194.3 million in the January to March 2024 period.

“This shows that foreign investors have confidence in the prospects of the textile industry in Indonesia,” Bawazier added.

The gross domestic product (GDP) of the industry grew by 2.64 percent year on year in the reporting quarter and also increased 5.92 percent over the previous quarter.

“This indicates that the textile industry has successfully emerged from the pressure and returned to the growth path,” the Director General informed.

The positive performance of the textile industry is supported by increased exports to countries such as Dubai and the Middle East.

According to Taufiek Bawazier, the garment and textile market in the Middle East is projected to grow significantly over the next five years, with annual growth reaching 7 percent.

UAE and Saudi Arabia are the largest contributors to the fashion market in the Middle East, while Qatar is also showing increased consumption.

The Ministry of Industry noted that Indonesian textile and clothing exports to Middle Eastern countries reached around 5.4 percent of overall textile and apparel exports.

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