Jakarta, February 5, 2026 — The Europe Today: Coordinating Minister for Economic Affairs, Airlangga Hartarto, announced that Indonesia’s textile industry is set for a “rebirth” through strategic strengthening of the midstream sector.
Speaking at The World Engineering Day for Sustainable Development 2026 in Jakarta on Wednesday, Airlangga highlighted the need to enhance fabric production, yarn manufacturing, printing, dyeing, and finishing processes, noting that the upstream and midstream segments have remained somewhat disconnected.
“So, we will reborn the industry in the midstream, especially in the middle sector—fabric production, yarn manufacturing, printing, dyeing, and finishing—because until now, the upstream and midstream segments have been somewhat disconnected,” the Minister said.
Following directives from President Prabowo Subianto, the government plans to establish a new state-owned enterprise (SOE) focused on textiles, supported by a $6 billion investment from BPI Danantara. The fund will be utilized for procurement of capital goods, adoption of advanced technologies, and expansion of exports in the textile sector.
The textile and garment industry is considered a frontline sector in mitigating potential impacts from U.S. tariff policies. In line with this, studies have been completed to guide the development of a comprehensive roadmap for strengthening Indonesia’s textile and textile product (TPT) industry.
The roadmap targets a tenfold increase in exports—from $4 billion to $40 billion—over the next decade by leveraging growing global demand and deeper integration across the industry’s value chain.
Airlangga emphasized the sector’s strategic potential: “We are pushing this because the industry is high fashion, part of lifestyle, and continues to grow. This is important to open up markets, especially as Europe will eliminate tariffs in 2027. The growth potential is significant.”
The initiative reflects Indonesia’s broader economic strategy to elevate the textile industry as a key driver of growth, innovation, and international trade.
