The Ministry of Industry (Kemenperin) projects that the domestic market value of Indonesia's fashion industry will reach USD 7.72 billion, or over IDR 125 trillion, in 2024. Minister of Industry, Agus Gumiwang Kartasasmita, stated that this projection is based on three main sectors: apparel, accessories, and footwear. He noted that the fashion industry is expected to grow at an average annual rate of 4.26% until 2029, reaching a market value of USD 9.6 billion (IDR 156.47 trillion). This growth aligns with the expansion of the national manufacturing sector, providing significant opportunities for creative industry players to dominate the domestic market amid competition from imported products. Currently, Indonesia hosts 962,000 fashion industries, encompassing the textile, ready-made clothing, leather, leather goods, and footwear sectors, which have seen a 12% increase compared to the previous year. These sectors are labor-intensive, employing over 1.6 million people. Consumption of clothing, footwear, and related services grew by 7.02% annually in Q2 2023, marking the highest growth rate since 2010.
Agus addressed concerns that the textile and textile products (TPT) industry is in a "sunset" phase, suggesting this narrative might be intended to undermine national attention and support for the industry, thereby increasing dependence on imported goods. However, recent data from the Industry Confidence Index (IKI) contradicts this notion, showing that the TPT industry is expanding. In Q1 2024, the TPT industry saw a significant performance improvement, with its GDP growing by 2.64% annually and 5.92% quarterly compared to a -1.15% contraction in Q4 2023. Export values in Q1 2024 also increased by 0.19%, reaching USD 2.95 billion (IDR 48.08 trillion). Agus also highlighted the significant role of e-commerce in boosting the textile industry's performance within the national economy. E-commerce facilitates consumer access to local textile derivative products, such as fashion items, contributing to the growth of domestic fashion industry players and sales. With strong performance in Q1 2024 and the influential role of e-commerce, Agus is confident that the fashion industry will continue to grow in the current disruptive era. He emphasized the need for increased collaboration among local fashion brands to ensure the sustainable growth of the domestic fashion industry ecosystem.
