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Garment Manufacturing Industry

  • Date Submitted: 08/04/2016 12:08 AM
  • Flesch-Kincaid Score: 39.7 
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Bharatbook.com announces a report on “Garment Manufacturing Industry in Indonesia”.   The report Its declining competitiveness intensifies the impact caused by internal and external environment deterioration.

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The population of Indonesia ranks the fourth in the world, which is the most populated country and the largest economy of ASEAN.

There are over 3,000 garment manufactories above designated size in Indonesia, mainly manufacturing shirts, cotton T-shirts, corsets, underwear, coats, sports shirts and trousers. Most products of brands such as Marks & Spencer, Mango and Zara are manufactured there.

The textile and garment enterprises mainly distributed in countries such as Bandung, West Java and areas near Jakarta with investors from Taiwan and Hong Kong. Bandung is the most developed city of garment industry in Indonesia. According to incomplete estimation, the annual output value of garments in Bandung accounted for over 40% in the country. In recent years, the cost of manpower increased, which led to the transfer of part of large-scale garment manufactories in West Java towards areas such as Yogyakarta and Central Java.

The large population of Indonesia created great demand for textile and garment, which formed a stable domestic market in recent years. In terms of overseas market demand, the garments, foot-wears and hats all have certain market in countries and areas like the U.S.A., European Union, Japan, Middle East and Africa. As the manufacturing base for various international famous brands, Indonesia had an export value of about USD 8 billion in 2014.

The textile and garment industry was one of the earliest developed industries in Indonesia. However, it was confronted with difficulties due to poor internal and external environment and its declining competitiveness in last two years, which was indicated by the shrinking total output value, limited export, dropping profitability, overstock and layoff. Under this background,...

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