NEWS & CSR
16 Feb 2026 | 4 min read | 29 Views | News Category: Trends
Indonesia is currently facing increasingly complex dynamics in international trade, particularly within the textile sector. You may have noticed a growing presence of foreign textile products—including those from China—filling shelves in local markets and dominating e-commerce platforms.
This phenomenon is not merely about affordable shopping trends. Its broader implications have now become a serious concern for policymakers.
According to international statistical data released in February 2026, the value of textile articles imported from China to Indonesia reached approximately US$83.4 million throughout 2024. These figures include finished products such as apparel, linens, and other textile goods that have a direct impact on consumers and local businesses.
In addition, Indonesia’s trade data shows that China remains the largest source of textile and textile product (TPT) imports, accounting for more than 40% of total textile imports into the country.
Although not all textile imports originate from China, the high volume of imported products—particularly finished consumer goods entering the market with minimal tariff barriers—has placed significant pressure on domestic textile manufacturers. Local factories are struggling to maintain production levels while competing against extremely aggressive pricing.
There is also the issue of illegally imported second-hand textiles (thrifting), which further harms micro, small, and medium enterprises (MSMEs) engaged in local textile production.
These statistics highlight that textile import issues go far beyond numbers. They reflect real market conditions where low-priced imported goods directly compete with Indonesian-made products.
As Chinese textile products continue to enter the Indonesian market, the House of Representatives (DPR RI) has become increasingly vocal in calling for stronger import regulations. This push mainly comes from legislators who believe that current import rules must be adjusted to ensure domestic industries have adequate space to grow and compete.
The DPR emphasizes that without stricter import controls, Indonesia risks seeing local products lose competitiveness against low-cost imported goods.
Related article: Cheap Chinese Textile Imports Trigger Crisis for Local Industry
Several policy proposals raised by the DPR include:
Evaluating and revising textile import regulations, not only to ensure smooth trade flows but also to balance domestic industry needs with imported goods.
Strengthening customs supervision to ensure imported products comply with legal procedures and to reduce the entry of illegal goods.
Implementing anti-dumping duties or selective import tariffs, particularly for specific products originating from countries with high export volumes such as China.
These measures aim to balance global market dynamics without undermining local industries that still require protection and room to grow.
The Indonesian government has responded to import-related concerns through several relevant regulatory measures throughout 2025, including:
The Minister of Trade Regulation No. 17 of 2025 on textile and textile product import policies was issued to replace previous regulations. This policy is intended to strengthen import control mechanisms while aligning legal requirements with current market conditions.
At the same time, the Ministry of Industry continues to adjust technical regulations to ensure the domestic textile sector remains competitive. The government is also actively socializing updated regulations so business actors can comply with applicable legal requirements.
The massive influx of Chinese textile imports is not merely a trade issue—it directly affects pricing, product choices, and the competitiveness of local industries. While the DPR RI continues to push for tighter import regulations to ensure the long-term sustainability of the national textile industry, the government is also adapting policies to make import procedures more measurable and transparent.
For business players, buyers, and textile industry observers alike, understanding these dynamics is essential to anticipating market trends and identifying future opportunities.
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