Indonesian Textile Industry Under Siege from Chinese Imports

Surge in Cheap Imports

The Indonesian textile and footwear industries are facing unprecedented challenges due to a massive influx of cheap imports from China. Industry leaders have expressed concerns about products being sold at extremely low prices, with some shoes being offered for as low as Rp 75,000 per pair ¹

.

Industry Concerns and Government Response

David Chalik, Chairman of HIPAN, reported that when he attempted to replicate these low-priced products through Chinese suppliers, he was informed that producing at such prices was not feasible ¹

. This has led to accusations of dumping practices by Chinese manufacturers. The industry is calling for stronger government intervention to protect local businesses from what they describe as unfair competition ³

Source 3

https://finance.detik.com/berita-ekonomi-bisnis/d-8208628/pengusaha-konveksi-ngeluh-baju-impor-china-kuasai-pasar-ri

.

Economic Impact

The situation has resulted in significant job losses within the sector. According to the Konfederasi Serikat Pekerja Nusantara (KSPN), 47,115 workers were laid off between January and October 2025, continuing a trend that started in 2023 ⁴

.

Industry Recommendations

Industry leaders are urging the government to implement measures to protect local manufacturers. Suggestions include stricter controls on illegal imports and support for local businesses to enhance their competitiveness. Hendrik Kawilarang Luntungan, CEO of PT Inerco Global International, emphasized the need for government guidance to develop new entrepreneurs focusing on manufacturing industries ²

.

Government Initiatives

In response to the crisis, Minister of Industry Agus Gumiwang Kartasasmita has announced plans to strengthen the textile industry through various policies, including fiscal and non-fiscal incentives, vocational training programs, and restructuring of production machinery ⁴

.