Nina Jobst
Research expert covering South Korea
Apparel and footwear market in Indonesia - statistics & facts
Apparel and footwear are the largest contributors to the ever-growing Indonesian textile industry. It is an integral part of the country’s economy, accounting for a significant number of manufacturing exports, as well as providing a large number of jobs. The industry was severely affected by the coronavirus (COVID-19) pandemic causing a crisis that devastated production and supply chains. However, strong government support has helped the industry get back on track, slowly compensating for the losses suffered during the pandemic. Preliminary gross domestic product (GDP) figures for textile and apparel manufacturing and leather and footwear manufacturing in 2023 indicated a recovery, reaching figures above pre-pandemic levels.
The apparel and footwear industry has also positioned Indonesia as one of the biggest global suppliers. The value of Indonesia’s footwear exports alone reached more than seven billion U.S. dollars in 2024, with United states, China, and Netherlands among its main export destinations. In addition, Indonesia is set to become one of the top leading global textile and apparel producers as a part of the government’s Fourth Industrial Revolution (4IR) masterplan. The 4IR blueprint aims to boost Indonesia’s manufacturing sector, with textile and apparel being one of five targeted industries, and become a powerhouse by 2030. The 4IR initiatives allow the industries in focus to transform their operation, as well as improve productivity and competitiveness through direct access to more substantial investments, both in technology and R&D.
Despite already being home to many well-known global fashion brands and companies, Indonesia is projected to benefit from the increasing number of global apparel companies looking to reduce or even stop outsourcing their production in China. This will, in turn, further boost industry development in Indonesia. Boasting a young and growing labor force and relatively low labor costs, Indonesia offers an appealing alternative. In 2023, the monthly minimum wage in Indonesia amounted to approximately 322.1 U.S. dollars.
Market landscape
Indonesia’s apparel and footwear industry relies heavily on export activities and outsource manufacturing for global fashion brands. The industry was known to absorb a significant number of workers as it is labor-intensive and requires little formal training. In 2024, the number of workers in the large and medium-scale apparel manufacturing was estimated to reach around 843,000 people. Meanwhile, in the large and medium-scale footwear manufacturing, it was estimated to reach around 480,000 people.The apparel and footwear industry has also positioned Indonesia as one of the biggest global suppliers. The value of Indonesia’s footwear exports alone reached more than seven billion U.S. dollars in 2024, with United states, China, and Netherlands among its main export destinations. In addition, Indonesia is set to become one of the top leading global textile and apparel producers as a part of the government’s Fourth Industrial Revolution (4IR) masterplan. The 4IR blueprint aims to boost Indonesia’s manufacturing sector, with textile and apparel being one of five targeted industries, and become a powerhouse by 2030. The 4IR initiatives allow the industries in focus to transform their operation, as well as improve productivity and competitiveness through direct access to more substantial investments, both in technology and R&D.
Despite already being home to many well-known global fashion brands and companies, Indonesia is projected to benefit from the increasing number of global apparel companies looking to reduce or even stop outsourcing their production in China. This will, in turn, further boost industry development in Indonesia. Boasting a young and growing labor force and relatively low labor costs, Indonesia offers an appealing alternative. In 2023, the monthly minimum wage in Indonesia amounted to approximately 322.1 U.S. dollars.
Local trends and consumer preferences
Fashion and footwear in Indonesia are mainly driven by trend-conscious youth and a growing love for casual and streetwear styles. This is backed by a recent survey revealing that casual wear topped the list as the most frequently purchased fashion products in Indonesia. Influences from social media, celebrity culture, and K-pop play a major role in shaping consumer choices, prompting brands to quickly adapt to shifting trends. At the same time, footwear trends also continue to thrive, with sneakers and sports shoes becoming increasingly popular. In addition, the rise of e-commerce has further revolutionized the way Indonesians shop for fashion, putting endless options at their fingertips.
