Indonesia
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Country Overview
*All data is in tonnes per annum
TEXTILE WASTE
Post consumer textile waste
No items found.
pre consumer textile waste
Post Industrial textile waste
No items found.
Imported textile waste
No items found.
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KEY POINTS ON T&a LANDSCAPE
Large Domestic Focus and Export Challenges
$10B
Textile and Apparel Export
$10B
Textile and Apparel Import
Indonesia’s T&A industry contributes about 1% to national GDP, with a large domestic focus. The increasing raw material costs, infrastructural and logistical inefficiencies, and inconsistent government support for the sector have impacted the competitiveness of the Indonesian T&A industry and in turn reduced exports. The USA, EU, Japan, and South Korea are key export markets, with apparel leading exports and fabrics dominating imports.
High Import Dependence for Cotton and Viscose Dominance in Local Fibre Production
99%
Cotton Need Imported by Yarn producers
Indonesia’s fibre industry mainly serves the domestic market, producing viscose, polyester, and natural fibres. However, apparel and fabric producers rely heavily on imported raw materials, with yarn producers almost entirely dependent on imported cotton. Indonesia contributes 3% to global viscose fibre production, with viscose making up 54% of the fibre produced domestically.
Dominance of Microenterprises and Apparel Manufacturers
75%
Industry is Made Up of Apparel Manufacturers
The industry is dominated by microenterprises (93%), followed by small enterprises (6%) and medium-to-large enterprises (1%). FDI plays a minimal role, accounting for less than 1%. Apparel manufacturers comprise majority of the industry followed by fabric manufacturers at 25%. Yarn and fibre manufacturers each account for only 0.1% of the total enterprises
Underutilized Textile Recycling
12%
Pre-Consumer Textile Waste is Recycled
Textile recycling in Indonesia remains underutilized despite strong circularity potential, with activity concentrated among a few large players in East and West Java. Most factory waste is sold cheaply to aggregators, who resell at inflated prices to recyclers. Additionally the import ban on used clothing is creating feedstock shortages for recyclers.
production clusters
Key regions with fibre production
South Sulawesi(A), East Nusa Tenggara(B), Central Java(C), West Java(D), Banten(E), Riau(F)
Key regions with apparel production
Bandung(A), Karawang(B), Semarang(C), Tangerang(D), Sidoarjo(E), Jakarta(F)
Other Notes
- Major Fibre producers - Indorama, Asia Pacific fibres, Tifico fibre, Toray & Kahatex and apparel producers - PT. Pan Brothers Tbk, PT. Kahatex, Masarya Indonesia
- Rising labour wages in West Java have pushed T&A firms to relocate to lower-wage regions like Central Java. These regions, however, have lower labour productivity and skills.
- Ageing machinery is a major constraint across the textile value chain.
- Textile imports from China, primarily synthetic fabrics & yarns have flooded the Indonesian market with cheap products, making it challenging for domestic manufacturers to compete, leading to factory closures
Waste regulation
Circular Economy Roadmap & National Action Plan (2025-2045)
They aim to transform the country into a high-income, low-carbon economy by 2045 by embedding circular principles across key sectors to improve resource efficiency and cut waste. The plan includes developing an Extended Producer Responsibility (EPR) framework, introducing eco-design standards, mainstreaming circular practices in national and regional planning, and establishing green public procurement (GPP) guidelines, while also leveraging digital solutions for waste tracking and resource use. By doing so, Indonesia targets a 25% reduction in material use intensity by 2045, the creation of 4.4 million net new jobs by 2030, a reduction of up to 126 million tonnes of CO₂, and a projected boost to GDP of USD$40–45 billion by 2030
Waste trade
0.74 kT
Import quantities (HS 6309, 631010)
4.09 kT
Export quantities (HS 6309, 631010)
green energy
13.33%
Share of modern renewables in final energy consumption
Other Notes
- Renewable Electricity Generation by source: hydro (57.6%), geothermal (39.6%), solar (1.7%)
- National Energy Policy: It aims to cut reliance on fossil fuels by promoting renewables (solar, wind, geothermal, bioenergy), targeting 23% of energy use by 2025 and 31% by 2050, alongside investments in storage and off-grid solutions. It emphasises equitable energy access, low-carbon technologies, and national efficiency programs across industry, transport, and households, aligning with the country’s net-zero by 2060 Nationally Determined Contributions goals.
- Just Energy Transition Partnership (JETP): Launched at the G20 in 2022, it will mobilize $20 billion in public and private finance to help Indonesia peak power sector emissions by 2030, reach net-zero in the power sector by 2050, and raise renewable energy’s share to 34% by 2030. It is co-led by the US and Japan, with support from the G7, EU, and other partners.
- Green Financing Offered by BCA: It supports renewable energy, energy efficiency, sustainable management of bio resources and sustainable land use, eco-efficient products, ‘eco-friendly’ transportation and ‘environmentally friendly’ buildings
