Having experienced sluggishness in the last several years, garment industry has started stretching again since 2017. The export has increased significantly and the domestic demand for garment products strengthened as well.
The growth of export value in 2017 reached 8.47% escalated to 8.74% in 2018 and achieved 10.33% in 2019. Meanwhile, the domestic demand also went up from 5.35% in 2017 rocketed to 17.95% in 2018 and declined to 14.27% in 2019.
The weakening garment market until 2016 was as a result of stagnant overseas market demand since many buyers reduced their purchases of garment products from Indonesia. Besides, the sluggishness in garment demand is also triggered by the global crisis owing to the US-China trade war.
However, in the last three years garment producers have been optimistic again. The demand for garment in 2024 is estimated to keep on increasing. The local market is estimated to continue to rise from 2.3 million tons in 2020 to 2.8 million tons in 2024. Whereas, the export market is predicted to escalate from 541.8 thousand tons in 2020 to 672.7 thousand tons in 2024. The total garment market in the form of the local market and export market in 2020 will reach 2.88 million tons and predicted to reach 3.55 million in 2024.
The apparel industry is decided to be one of five manufacturing sectors which will be the pioneer to enter the era of the industrial revolution 4.0 in the country. This happens because the apparel industry has played an important role in contributing significantly to the national economy so that its development is prioritized to make it more competitive globally.