Ministry Announces Five Incentives to Boost Textile Sector

The Ministry of Industry announced on 25 October 2025 that the government is preparing at least five fiscal and non‑fiscal incentives for operators of the national textile and textile product sector. The measures aim to strengthen competitiveness and prevent a decline in production within the sector.

Minister Agus Gumiwang Kartasasmita noted that the textile industry expanded by 5.39 % and contributed 0.98 % of GDP from Q4 2024 to Q2 2025, prompting policies to accelerate its transformation. The five incentives include investment ease under Government Regulation 28/2025, an energy‑efficient machinery restructuring program, an industry‑dense credit scheme with a Rp20 trillion allocation, a master‑list import facility for capital goods, and fiscal benefits such as tax holidays and super‑tax deductions.

These policies are intended to reinforce a sustainable textile ecosystem, attract investment, and generate employment, positioning the sector as a strategic pillar of the national manufacturing base. The minister emphasized that such support is vital for inclusive growth and the global competitiveness of Indonesia’s textile industry.