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Indonesia weighs state-led revamp to rescue ailing textile sector

Indonesia is preparing a state-backed overhaul of its textile and clothing industry, betting that tighter integration across the supply chain can reverse years of decline in one of the country’s most labour-intensive manufacturing sectors.  

Ahmad Pathoni February 25 2026

The country’s textile and textile products sector employs about 3.75 million workers but has struggled with slowing growth, increasing imports and weakening competitiveness. Credit: Wachiwit/Shutterstock.

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