NEWS & CSR

The Positive Impact of Import Restrictions on Indonesia’s Textile Industry

12 Nov 2025 | News Category: -

For years, the flood of cheap imported products—especially from China—has pressured many local manufacturers, forcing some to halt production. But now, the situation is beginning to turn around.

Through the Ministry of Trade Regulation (Permendag) No. 17 of 2025, the Indonesian government officially tightened import restrictions on textiles and textile products (TPT). This policy aims to ensure that domestic products regain a fair share of the local market.

We see this not merely as a form of protectionism, but as the beginning of a revival for Indonesia’s textile industry—breathing new life into local producers and giving you, as a consumer, the chance to enjoy higher-quality and more ethical products.

Why Import Restrictions Are Necessary

Maintaining Market Balance

According to the Ministry of Trade of the Republic of Indonesia (Kemendag, 2025), Permendag 17/2025 strengthens the supervision of imported goods through the Lartas (restricted and prohibited goods) category.
About 70.65% of TPT tariff posts now fall under this regulation—a move that, as reported by Neraca.co.id (2025), aims to curb dumping practices and prevent domestic prices from collapsing due to excessive cheap imports.

With this policy, the government seeks to restore balance between supply and demand in the domestic textile market. We see it as a strong signal that the state is now firmly committed to supporting the sustainability of local industries.

Protecting Local Manufacturers

The Indonesian Textile Association (API) noted that the textile and apparel sector still faces intense pressure from imported finished goods, as reported by DDTC News (2025).
The new regulation is expected to serve as a “fresh breeze” for industrial players—allowing national production capacity to recover and strengthening local supply chains.

We believe this is an opportunity for domestic producers to compete again and solidify their position in the market.

Encouraging Industrial Independence

This policy also aligns with the government’s strategic direction to make the textile and apparel industry one of Indonesia’s key labor-intensive backbones.
According to the Ministry of Industry (Kemenperin, 2025), the TPT sector grew by 5.39% from late 2024 to mid-2025, contributing nearly 0.98% to the national GDP.

With such solid foundations, we believe Indonesia’s textile industry is not only surviving—but ready to thrive.

Read also: Textile Exports: Challenges, Strategies, and Opportunities.

Positive Impacts for Local Industry Players

Rising Production and Domestic Demand

As import regulations become stricter, opportunities for local products to meet domestic demand are expanding. Many small and medium textile producers (IKM) have reported improved production conditions since early 2025.

Innovation and Product Quality Improvement

Facing tighter competition and more supportive regulations, many manufacturers are now focusing on innovation—developing eco-friendly materials, modern designs, and more efficient production processes.

Empowering the Local Workforce

As a labor-intensive industry, textile manufacturing plays a key role in employment. Strengthening domestic production directly translates into more job opportunities—from raw material suppliers to finished-goods producers.

Positive Impacts for Indonesian Consumers

More Competitive Local Products

For a long time, consumers believed imported products were always better. Today, with stronger regulations and growing local innovation, Indonesian textile products are becoming increasingly competitive in both quality and style.

More Stable Prices

With import inflows better controlled, market fluctuations and oversupply risks are reduced. According to recent industry updates, Indonesia’s TPT sector is showing signs of recovery and is no longer viewed as a “sunset industry.”

Supporting the National Economy

When you choose local products, you’re not just making a purchase—you’re supporting Indonesian industry, empowering local workers, and contributing to a stronger national economy.

Let’s support the growth of Indonesia’s textile industry by choosing high-quality, ethical local products.
Together, we can strengthen the future of Indonesia’s textile sector.

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