AGTI Applauds Government’s Efforts to Strengthen Downstream Processing of the National Textile and Garment Industry to Increase Employment
Jakarta – The Indonesian Garment and Textile Association (AGTI) commends President Prabowo Subianto’s commitment to strengthening the downstreaming of the national textile and garment industry as a strategic step to increase job creation. The textile and garment sector is considered vital as a labor-intensive industry that has been a key pillar of the national economy while maintaining social stability in various regions.
AGTI Chairwoman Anne Patricia Sutanto assessed that the President’s direct attention to the textile and garment industry is a very strong political and economic signal for the sector’s sustainability. She stated that strengthening downstream processing not only increases the added value of domestic products but also contributes directly to expanding formal employment opportunities. “The textile and garment industry plays a strategic role in job creation and maintaining national socio-economic stability,” Anne said.
AGTI emphasized that the textile and garment industry’s position as a strategic sector requires immediate follow-up with concrete policies at the ministerial, agency, and regional government levels. Anne believes the national commitment must be translated into supportive regulations, targeted fiscal instruments, and effective implementation mechanisms on the ground to ensure the industry’s sustainable growth and optimal employment absorption.
Regarding the President’s directive regarding supply chain revitalization, AGTI believes that strengthening the textile supply chain must be carried out comprehensively, from upstream to downstream. The long supply chain structure requires integrated policies to enable the national industry to increase competitiveness and reduce dependence on imported products.
Anne believes strengthening the domestic upstream industry is a crucial step, although in the short term, raw material imports will still be necessary to maintain smooth production. “Raw material imports for compliant producers need to be swift and efficient to maintain industrial competitiveness,” she said.
Furthermore, AGTI believes that downstreaming the textile and garment industry is key to increasing added value and strengthening the sector’s role as a labor absorber. With consistent downstreaming, the national textile industry is expected to advance, not only as a producer of raw materials but also as a producer of high-value products that can compete in the global market.
Anne also highlighted the importance of technological adaptation and the development of the domestic machinery industry. She stated that dependence on imported machinery remains high, so strengthening supporting industries, including mastery of technology and semiconductors, needs to be part of the national industrialization agenda. This step is believed to be able to encourage the implementation of Industry 4.0 while improving productivity and workforce quality.
Moving forward, AGTI hopes that President Prabowo’s directives can be quickly translated into concrete technical policies, including licensing deregulation, the provision of competitive energy, and targeted fiscal and financing support. With integrated and consistent policies, AGTI is optimistic that the national textile and garment industry will be able to strengthen its competitiveness, expand employment opportunities, and once again become the backbone of Indonesia’s labor-intensive manufacturing sector.
