HOLOPIS.COM, JAKARTA – Coordinating Minister for Economic Affairs Airlangga Hartarto said the government is committed to strengthening Indonesia’s textile and textile products (TPT) industry, which it considers strategically important to the national economy.
Airlangga made the statement after attending a limited meeting chaired by President Prabowo Subianto at the Presidential Palace Complex in Jakarta.
He said the textile industry, spanning upstream to downstream sectors, plays a vital role in the economy, contributing around 0.97 percent to gross domestic product (GDP), employing about 4 million workers, and generating approximately US$12 billion in exports.
“This is one of the strategic labor-intensive sectors. In our briefing to the President, we said that the textile and textile products industry is growing above the overall economic growth rate, at 5.6 percent,” Airlangga said at the State Palace in Jakarta on Tuesday, Sept. 22, 2026, Holopis.com, reported, Tuesday (22/9).
He also highlighted the leather goods and footwear industry, which recorded growth of 8.25 percent.
“The leather goods and footwear industry grew by 8.25 percent,” he added.
Airlangga also discussed challenges currently facing the textile industry, particularly tariff harmonization. He said some garment manufacturers have been affected by issues related to anti-dumping duties.
“One of the issues facing the textile and textile products industry is, of course, tariff harmonization from upstream to downstream,” he said.
The government is therefore preparing a number of strategic measures to protect the domestic market while improving the competitiveness of the labor-intensive industry.
The government also plans to crack down on illegal imports in the downstream sector, which have disrupted domestic market stability. It is also considering easier access to raw materials through a review of Technical Approvals (Pertek).
“Of course, this concerns facilitating the entry of raw materials. The President asked us to review the Technical Approval and other related matters. Second, specifically for the downstream sector, particularly garments, disruptions caused by kilo-based imports and bulk imports were also discussed. The President asked the Director General of Customs and Excise to take action because these imports are disrupting domestic producers,” Airlangga said.
Airlangga added that the government is also refining employment arrangements, including regulations governing fixed-term employment agreements (PKWT), to respond to the characteristics of the garment industry, which is heavily influenced by seasonal fluctuations in demand.
“There needs to be an adjustment to the PKWT regulations. We also discussed outsourcing arrangements for companies providing services overseas, which are not subject to taxation. As for VAT related to PKWT, we will find the appropriate regulatory framework,” he explained.
