Amid the planned 32% reciprocal tariff by the United States on Indonesian products, countries such as Japan, Germany, and the UAE are emerging as potential alternative export markets for Indonesia’s textile industry. According to David Leonardi, Vice Chairman of the Indonesian Textile Association (API), textile businesses are eyeing new markets outside of the US, with consistent growth trends observed in these regions. "Countries like the UAE and other Middle Eastern nations, which have growing retail sectors and increasing demand for textile products, are becoming key export destinations," David said. Additionally, Germany and other Eastern European countries are also seeking alternative suppliers for textiles and garments, apart from China and India, presenting promising prospects for Indonesia.
On the other hand, Japan and South Korea offer opportunities for increasing textile exports, given their preference for high-quality products from developing countries. Australia and Canada also show interest in value-added products like environmentally friendly textiles or modest fashion. David pointed out that Indonesian businesses are being more cautious about maintaining a balanced trade relationship with the US to avoid over-dependence. "With tariff uncertainties, businesses are diversifying export markets," he added. To enhance export market diversification, Indonesia needs to focus on improving product quality, innovation, and design, along with strengthening branding, promotional efforts, and logistics efficiency.
