The Ministry of Industry reported that the textile and apparel industry experienced significant annual growth (year on year/yoy) in the first quarter of 2024, with textiles growing by 5.90% and apparel by 2.64%, driven by high export demand. Adie Rochmanto Pandiangan, Director of the Textile, Leather, and Footwear Industry (ITKAK) at the Ministry of Industry, stated that foreign demand for textile and apparel products, including footwear, increased by 7.34% (yoy) for textiles, 3.08% (yoy) for apparel, and 12.56% (yoy) for footwear. This expansive growth also boosted the contribution of the processing industry to economic growth, reaching 19.28% (yoy), up from 18.57% (yoy) in the same period in 2023. "This indicates that the processing industry remains the main driver of Indonesia's economy," Adie said. This growth is also reflected in the Industrial Confidence Index (IKI) for the textile and apparel sectors, which continued to rise. In April, the textile industry reached an expansion position since the first IKI release, while the apparel industry has been expanding since the end of 2023.
In addition to export orders, the stability of domestic household consumption, supported by the 2024 election, national holidays, collective leave, and Eid al-Fitr, also helped drive growth in this sector. According to the Bank Indonesia Prompt Manufacturing Index (PMI-BI) for Q1 2024, the textile and apparel industry increased and was in the expansion phase with an index of 57.40%. The leather, leather goods, and footwear industry also saw growth with an index of 55.36%. The performance of the leather, leather goods, and footwear industry in Q2 2024 is expected to continue in the expansion phase, with the highest index projected at 61.07%.
