Textile Industry Grows 6.36 Percent in the Second Quarter of 2026, API Says Recovery of the TPT Sector is Getting Stronger

Workers complete orders for textile products for export at the PT Sari Warna Asli Tekstil (Sari Warna) Solo factory, Central Java, Thursday (17/7/2025). (Antara - Maulana Surya)

JAKARTA - The national Textile and Textile Products (TPT) industry recorded a significant recovery trend in the second quarter of 2026. The Indonesian Textile Association (API) recorded a growth of 6.36 percent in the textile and garment sector on an annual basis (year-on-year/yoy), surpassing the national Economic Growth Rate.

API Deputy Chairman, Ian Syarif, stated that this achievement shows the resilience and expansion space of the domestic manufacturing industry which continues to improve.

"The growth of 6.36 percent shows that the textile and garment industry still has resilience and room for expansion. After facing heavy pressure in recent years, this industry is growing faster than the national economy and the non-oil and gas processing industry," said Ian in a written statement in Jakarta, Friday (7/8/2026).

This growth figure recorded an acceleration of 2.01 percentage points compared to the same period last year. The growth of TPT in the second quarter of 2026 was also recorded as higher than the national economic growth (5.29 percent) and the non-oil and gas processing industry (5.32 percent).

Ian added that the indicator of the recovery of the TPT sector was not only seen from the production rate, but also from the increase in investment value, export performance, maintenance of trade surplus, to labor absorption.

TPT Sector Investment Reaches IDR 11.4 Trillion

Cumulatively throughout the first half of 2026 (January-June), the realization of TPT industrial investment was recorded at Rp. 11.40 trillion. This value jumped 11.85 percent compared to the same period in 2025 of Rp. 10.19 trillion.

In detail, investment in the textile industry sector increased from Rp6.05 trillion in the first half of 2025 to Rp6.78 trillion in the first half of 2026. At the same time, investment in the garment industry was pushed up from Rp4.14 trillion to Rp4.62 trillion.

"This data shows that capital flows not only enter the downstream garment sector, but also target the upstream textile sector which provides raw materials and intermediate materials for the national garment industry," explained Ian.

Capital injection into the TPT supply chain provides a wide multiplier effect, connecting the industrial chain from fiber, spinning, weaving, knitting, to the process of fabric refinement and convection.

Export Performance and Import Growth Challenges

In terms of foreign trade, the trade balance of the TPT industry still posted a positive performance. The cumulative export value for the period January-May 2026 reached 4.85 billion US dollars, up 1.57 percent compared to 4.77 billion US dollars in the same period in 2025.

However, the import rate of TPT in the period January-May 2026 was recorded as increasing from 3.41 billion US dollars to 3.58 billion US dollars. Although the TPT industry still recorded a surplus of 1.27 billion US dollars, this figure has slightly decreased compared to the surplus in the period January-May 2025 of 1.37 billion US dollars.

In response to this, API urged the government and business actors to anticipate the growth rate of imports exceeding the export rate.

"Export growth proves the competitiveness of Indonesian TPT products in the global market is still solid. However, the increase in imports still requires special attention. We encourage the use of international trade agreements - such as expanding access to the United States, the European Union, and other strategic partners - can be optimized to boost export orders for national TPT products," concluded Ian.