NEWS & CSR

The Shadow of U.S. Tariffs on Indonesia’s Textile Industry

10 Jul 2025 | News Category: -

When US Tariffs Strike Hard

In April 2025, the US imposed 32–40% tariffs on textile imports, directly affecting 40% of Indonesia’s textile and apparel exports ¹ Indonesian spinning yarn manufacturers and greige fabric suppliers, despite heavy investments in ISO 9001 textile manufacturer credentials and OEKO‑TEX® certification, faced sudden order declines as buyers chased cheaper options.

A Tsunami of Job Cuts

The Business & Human Rights Resource Centre warns that up to three million textile workers are at risk of redundancy amid plummeting orders ¹. PT Sae Apparel alone laid off 8,000 staff in mid‑2024. Production hubs in Bandung and Majalaya implemented shift cuts and temporary layoffs to preserve cash flow. Consequently, spinning yarn demand fell by as much as 20%, and greige fabric suppliers saw material orders deferred.

Weaving Survival and Revival Strategies

Export Market Diversification
Target Europe, the Middle East, and Africa to reduce US dependency.
Factory Modernization
Invest in predictive maintenance and IoT sensors on German‑Japanese spinning machinery to cut downtime by 30% and restore margins.
Reskilling & Workforce Flexibility
Partner with industry associations and polytechnics for operator retraining and rotational shifts during demand dips.
Open Factory Days & Value‑Chain Transparency
Invite global B2B buyers to tour Danarmas’ spinning yarn and greige finishing facilities, showcasing ISO 9001 textile manufacturer excellence.

Boost Local Consumption
Encourage buyers and consumers to choose domestic products: over 44% of Indonesia’s textile imports come from China, undermining local economic circulation and making it hard for local brands to survive ². Prioritizing local textile products helps preserve jobs and strengthen the national textile ecosystem.

Crafting the 2030 Textile Vision

US tariffs and layoffs are undeniable challenges, yet they present a pivotal moment for Indonesian spinning yarn manufacturers and greige fabric suppliers to fortify their foundations. Through technology adoption, tropical cotton R&D, market diversification, and a "buy local" movement, we can weave a resilient, sustainable future. Contact Danarmas sales today to discuss partnership opportunities!