Executive Summary

Key insights and market outlook

The Indonesian textile and automotive industries are bracing for potential recovery in 2026 despite facing significant challenges. Textile manufacturers are pushing for smarter import quota management to prevent market distortion ¹

, while the automotive sector shows signs of improvement after a sluggish 2025 ². Key players like PT Astra International (ASII) are expected to be impacted by these market dynamics.

Full Analysis

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Deep Dive Analysis

Indonesian Industries Eye 2026 Recovery: Textile and Automotive Sectors

Textile Industry Challenges and Hopes

The Indonesian textile and textile product (TPT) industry views 2026 as a transition year with hopes for recovery, though significant challenges remain. Farhan Aqil Syauqi, Secretary General of APSyFI, emphasized that 2026 will be crucial for the sustainability of many TPT companies, particularly in the upstream sector ¹

. The industry is calling for government support to prevent further factory closures.

Key challenges include:

Influx of illegal imported products
Excessive import quotas leading to dumping
Need for wise quota allocation based on national production capacity

Automotive Sector Outlook

The automotive market is expected to show improvement in 2026 after a challenging 2025. Despite a likely shortfall from initial targets, analysts see potential for recovery ²

. The wholesales data shows:

2024: 865,723 units
Jan-Nov 2025: 710,084 units (9.6% decrease YoY)

Major players like PT Astra International (ASII), PT Dharma Polimetal (DRMA), and PT Astra Otoparts (AUTO) are expected to feel the impact of current market conditions.