Fashion Industry 2025

Fashion & Apparel Industry in Indonesia

Indonesia's fashion and apparel sector offers exceptional opportunities for foreign investors. With a strong textile manufacturing base, growing fashion-conscious consumer market of 277 million people, and 9.5% annual growth rate, the industry combines traditional craftsmanship with modern retail innovation.

$26B

Market Value

9.5%

Annual Growth

$3B

FDI in 2024

277M

Consumer Market
Investment Advantages

Why Invest in Indonesian Fashion & Apparel Industry?

Indonesia offers unique competitive advantages for fashion investors, combining manufacturing excellence with a massive consumer market and export potential.

Strong Manufacturing Base

Established textile and garment manufacturing infrastructure with skilled workforce, competitive labor costs, and proximity to raw materials. Indonesia is the world's 8th largest textile exporter.

Massive Consumer Market

277 million fashion-conscious consumers with growing middle class reaching 135M by 2030. Rising disposable income drives strong demand for quality apparel and fashion products.

Export Opportunities

Strategic location with access to global markets through free trade agreements. $15 billion in annual textile and apparel exports to USA, EU, Japan, and ASEAN markets.

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Market Landscape

Fashion & Apparel Market in Indonesia

Indonesia's fashion industry is experiencing rapid transformation, combining traditional textile excellence with modern retail innovation and digital commerce.

$26B

Market Size 2024

9.5%

Annual Growth

$15B

Export Value

5M+

Workforce

Key Market Drivers

  • E-Commerce Boom

    Online fashion sales growing at 25% CAGR with 85M online shoppers

  • Rising Middle Class

    Increasing purchasing power and demand for quality branded apparel

  • Muslim Fashion Hub

    World's largest Muslim population driving halal fashion and modest wear market

  • Government Support

    Export incentives, tax breaks, and Making Indonesia 4.0 digitalization push

Investment Sectors

Fashion & Apparel Investment Opportunities

Strategic investment areas in Indonesia's fashion ecosystem with high growth potential

Garment Manufacturing

Establish production facilities for ready-made clothing, sportswear, or specialized garments

Key Highlights:
Low labor costs Skilled workforce Export potential Tax incentives
Est. Investment: $500K - $5M

Fashion Retail Brands

Launch retail stores, boutiques, or franchise operations targeting Indonesia's growing middle class

Key Highlights:
Growing market 135M middle class Mall expansion Brand loyalty
Est. Investment: $200K - $2M

Fashion E-Commerce

Build online fashion marketplaces or digital platforms for apparel and accessories

Key Highlights:
25% CAGR 85M online shoppers Mobile-first Social commerce
Est. Investment: $300K - $3M

Textile Production

Invest in yarn, fabric, or specialized textile manufacturing for domestic and export markets

Key Highlights:
Raw materials Spinning mills Fabric weaving Export market
Est. Investment: $1M - $10M

Fashion Design & Creative

Establish design houses, pattern making studios, or fashion consulting services

Key Highlights:
Local talent Creative economy Batik heritage Innovation hub
Est. Investment: $100K - $500K

Accessories & Footwear

Manufacture or distribute shoes, bags, belts, and fashion accessories

Key Highlights:
Leather goods Footwear export Accessories market Craftsmanship
Est. Investment: $300K - $2M

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Nafa Dwi Arini
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Industry Segments

Fashion Industry Sub-Sectors

Explore diverse segments within Indonesia's fashion ecosystem

Textile Manufacturing

  • Yarn and thread spinning
  • Fabric weaving and knitting
  • Textile printing and dyeing
  • Technical textiles for industrial use
  • Batik and traditional textile production

Apparel & Clothing

  • Ready-to-wear clothing manufacturing
  • Sportswear and activewear production
  • Muslim fashion and modest wear
  • Children's clothing and baby wear
  • Custom tailoring and bespoke services

Fashion Retail

  • Department stores and fashion outlets
  • Specialty fashion boutiques
  • Multi-brand fashion retail chains
  • Luxury fashion retail
  • Factory outlet operations

Accessories & Footwear

  • Footwear manufacturing (shoes, sandals)
  • Leather goods and bags production
  • Jewelry and fashion accessories
  • Belts, scarves, and textile accessories
  • Fashion watches and eyewear
2025 Insights

Fashion Industry Trends in Indonesia 2025

Key developments shaping the fashion landscape

Social Commerce Growth

Instagram, TikTok, and WhatsApp driving direct-to-consumer fashion sales with influencer marketing and live shopping features.

Sustainable Fashion

Increasing consumer demand for eco-friendly materials, ethical production, and circular fashion business models.

Modest Fashion Leadership

Indonesia emerging as global Muslim fashion capital with halal-certified products and modest wear innovation.

Smart Manufacturing

Adoption of automation, AI-powered design, and digital textile printing technologies for efficiency.

Export Market Expansion

Free trade agreements and "Made in Indonesia" branding opening new export markets worldwide.

Influencer Collaborations

Rise of local fashion influencers and celebrities driving brand awareness and consumer engagement.

Getting Started

Fashion Business Registration in Indonesia

Essential requirements and steps to establish your fashion business

Company Formation

Legal & Compliance

  • Trademark Registration

    Protect your brand name and logo in Indonesia and internationally

  • SNI (Indonesian National Standard)

    Product certification for textile and apparel quality standards

  • Halal Certification

    Optional halal certificate for Muslim fashion market access

  • Tax Registration & Compliance

    NPWP, VAT registration, and ongoing tax obligations

Company Formation + Licensing + Trademark - One Stop Solution

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Nafa Dwi Arini
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Step-by-Step Guide

Fashion Business Setup Process

Complete timeline from consultation to operations

1

Free Consultation

Discuss your fashion investment plans, market entry strategy, and business model with our experts

1-2 Days
2

Market Research

Comprehensive market analysis, competitor research, and feasibility study for your fashion business

3-5 Days
3

Company Establishment

PT PMA formation, notary deed, Ministry of Law approval, and corporate documents

7-10 Days
4

NIB & Licensing

Business identification number (NIB) registration through OSS with appropriate KBLI codes

2-3 Days
5

Brand Protection

Trademark registration for brand name and logo protection in Indonesia

6-12 Months
6

Operations Setup

Factory/store setup, hiring, supplier contracts, and business operations commencement

1-3 Months

Get expert guidance from consultation to launch

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Nafa Dwi Arini
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Frequently Asked Questions

Common questions about fashion industry investment in Indonesia

Indonesia offers a unique combination of advantages: (1) Strong textile manufacturing base making it the world's 8th largest textile exporter, (2) 277 million fashion-conscious consumers with growing middle class reaching 135M by 2030, (3) Competitive labor costs averaging $250-350/month, (4) Export potential with $15B annual textile exports, (5) Government support through tax incentives and export programs, (6) Access to ASEAN markets through free trade agreements.

Yes, under Indonesia's Omnibus Law and updated Negative Investment List (DNI), foreign investors can own 100% equity in most fashion and textile sectors including garment manufacturing, fashion retail (for stores >1200m²), textile production, and e-commerce platforms. Some segments may have minimum investment requirements. Our company registration experts can advise on specific requirements for your business model.

Key opportunities include: (1) Garment Manufacturing - Establish production facilities for ready-made clothing, sportswear, or modest wear with export potential, (2) Fashion Retail - Launch branded stores, boutiques, or mall outlets targeting growing middle class, (3) E-Commerce Platforms - Build online fashion marketplaces with 25% annual growth and 85M online shoppers, (4) Textile Production - Yarn, fabric, or specialized textile manufacturing, (5) Muslim Fashion - Tap into world's largest Muslim population with halal-certified modest wear, (6) Sustainable Fashion - Eco-friendly production using organic materials and ethical practices.

Common KBLI codes for fashion businesses include: 14111 (Ready-Made Clothing from Textiles), 47711 (Retail Trade of Clothing), 46411 (Textile Wholesale), 15120 (Footwear Manufacturing), 14131 (Textile Apparel Accessories), 47914 (E-commerce Retail Trade). The specific KBLI code depends on your primary business activity. Visit our KBLI directory to find the right classification or contact our consultants for guidance.

Company registration through OSS system takes 2-4 weeks including PT PMA formation, NIB registration, and basic licensing. Complete setup including factory/retail location, hiring staff, supplier contracts, and inventory takes 2-4 months for retail operations, or 4-6 months for manufacturing facilities depending on scale. Our fast-track company formation service can expedite the initial registration process.

Indonesia offers competitive labor costs: (1) Factory Workers: $250-350/month for garment production, (2) Retail Staff: $300-450/month for sales associates, (3) Skilled Designers: $600-1200/month for fashion designers and pattern makers, (4) Management: $1000-3000/month for mid-level managers. Indonesia has abundant workforce with 5 million+ workers in textile and fashion sector, strong technical schools for fashion and design, and high work ethic. Consider work permits for foreign key personnel if needed.

Indonesian government offers several incentives: (1) Tax Holidays: Up to 20 years for strategic investments in pioneer industries, (2) Export Support: Export financing facilities and trade promotion assistance, (3) SEZ Benefits: Additional incentives in Special Economic Zones with reduced taxes and streamlined customs, (4) Import Duty Exemptions: For raw materials and machinery, (5) Training Grants: Subsidized workforce training programs. Manufacturing operations typically qualify for better incentive packages.

Indonesia offers excellent export infrastructure: (1) Trade Agreements: Access to ASEAN Free Trade Area, RCEP, and bilateral agreements with major markets, (2) Export Procedures: Streamlined customs through Indonesia National Single Window (INSW), (3) Export Support: Government assistance through Indonesian Trade Promotion Center and export financing, (4) Quality Standards: SNI certification accepted in many international markets, (5) Logistics: Major ports in Jakarta, Surabaya, and other cities with regular shipping routes worldwide. We provide guidance on export licensing and documentation.

Indonesia is the world's largest Muslim population (230M+) creating massive modest fashion market: (1) Market Size: $20 billion Muslim fashion market growing at 12% annually, (2) Global Position: Indonesia emerging as global Muslim fashion capital alongside Dubai and Turkey, (3) Product Range: Hijabs, abayas, modest sportswear, Muslim wedding fashion, prayer garments, (4) Export Potential: Growing demand in Middle East, Malaysia, Singapore, and Muslim communities worldwide, (5) Events: Indonesia hosts major Muslim fashion weeks and industry exhibitions. Halal certification enhances market access and consumer trust.

Several options for sourcing: (1) Textile Hubs: Major textile centers in Bandung, Solo, Pekalongan (batik), and Jakarta with thousands of suppliers, (2) Trade Associations: Indonesian Textile Association (API) and Indonesian Fashion Chamber for networking, (3) Trade Fairs: Jakarta Fashion Week, Indonesia International Textile & Garment Industry Exhibition, (4) Online Platforms: Indotrading, Tokopedia B2B for supplier discovery, (5) Our Network: We can connect you with pre-vetted reliable suppliers and manufacturers. Visit our industries directory for more sector information.

Have more questions about fashion investment?

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Nafa Dwi Arini
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Related Services for Fashion Investors

Comprehensive business support services

Company Registration

Complete PT PMA establishment for fashion business with 100% foreign ownership support

Register Company

Business Licensing

NIB, operational permits, and compliance for fashion manufacturing and retail

Get Licenses

Trademark Protection

Register and protect your fashion brand, logo, and designs in Indonesia

Protect Brand

Tax & Accounting

Tax registration, bookkeeping, and ongoing compliance for fashion businesses

Tax Services

Visa & Immigration

Work permits, KITAS/KITAP for foreign fashion designers and management

Work Permits

Virtual Office

Professional business address in Jakarta or Surabaya for your fashion company

Get Address

End-to-end support from registration to operations

consultant gaivo.co.id
Nafa Dwi Arini
Consult on WhatsApp

Ready to Invest in Indonesian Fashion Industry?

Our experts provide comprehensive support for fashion investors - from company formation to operational licensing, supplier connections, and market entry strategy. Free consultation available!