Revitalizing Indonesia’s Labour-Intensive Industries: Textiles, Garments, and Footwear under Global Value Chain Pressure

This paper discusses the development and competitiveness of Indonesia’s textile & garment and footwear in dustries. These industries are important sources of formal employment and are closely integrated into global production networks. The paper reviews recent developments in investment, trade, technology, workforce readiness, and discusses the main challenges affecting industry competitiveness. The paper also highlights that the textile and footwear industries consist of diverse firms operating under different business models and facing different constraints across the value chain. These differences have important implications for the design of policies aimed at supporting industrial competitiveness and employment growth.