The Indonesian Employers Association (Apindo) highlighted the ongoing instability of investment interest in the national textile and textile products (TPT) sector. Although market opportunities remain open, investors currently prefer a cautious, wait-and-see approach before deciding to commit deeper capital to this labor-intensive industry.
Apindo General Chairwoman Shinta W. Kamdani revealed that investor hesitation is reflected in the decline of Domestic Direct Investment (PMDN) realization in the TPT sector in the first quarter of 2026. Data shows domestic investment in this sector reached only IDR 2 trillion, marking a quarterly correction of about 4.8%.
According to Shinta, international investors and global brand owners continue to compare Indonesia with competing countries such as Vietnam, India, and Bangladesh. They heavily weigh factors such as logistics cost efficiency, regulatory certainty, labor productivity, and ease of export market access before deciding to relocate or expand factories.
Pressure on the textile industry is mounting due to an influx of cheap imported products entering the domestic market, including those brought in through illegal channels or unfair trade practices. This condition forces many domestic companies to reduce factory utilization, squeeze profit margins, and implement labor cutbacks to survive in an increasingly competitive market.
Apindo appreciates the government's efforts to tighten trade regulations but emphasizes that the effectiveness of field supervision and law enforcement remains the key. The association urges the government to act decisively against dumping practices and strengthen trade defense instruments in accordance with WTO standards.
As a strategic roadmap for the next six months, Apindo proposes three main priorities: cutting high-cost economy factors through deregulation and logistics efficiency, strengthening domestic market protection without disrupting global supply chains, and providing technology modernization incentives for TPT industry players to boost added value and competitiveness in international markets.
