ASIATODAY.ID, JAKARTA — Indonesia is accelerating efforts to transform its textile and apparel industry as global fashion markets move toward stricter sustainability and transparency standards, with the United Kingdom and European Union preparing to implement the Digital Product Passport (DPP).
The Ministry of Trade, in collaboration with the Indonesian Embassy in London and British sustainable fashion company Nobody’s Child, recently held an international webinar to help Indonesian textile exporters understand the emerging digital traceability system and prepare for the next era of global trade.
The Digital Product Passport is expected to become a critical requirement for accessing major markets by providing a digital record of a product’s journey — from raw material origins and manufacturing processes to supply chain information, certifications, and environmental impact.
The European Union plans to gradually introduce DPP requirements starting in 2027, with textiles and fashion among the priority sectors. The initiative is also expected to influence global markets as countries increasingly demand greater transparency from manufacturers.
Director General of National Export Development at Indonesia’s Ministry of Trade, Fajarini Puntodewi, said the DPP should be viewed as a strategic opportunity for Indonesian exporters rather than merely a regulatory requirement.
“Digital Product Passport will become a new global standard that strengthens transparency, traceability, and sustainability. Indonesian businesses must be prepared to adapt and use this transformation to increase competitiveness in international markets,” she said.
Indonesia’s Textile Sector Enters a New Global Phase
Indonesia’s manufacturing sector continues to strengthen its role as an export engine. During January–May 2026, manufactured exports grew 5.94 percent compared with the same period last year, reflecting the country’s shift toward higher value-added industries.
Textiles, garments, and fashion products remain among Indonesia’s key manufacturing exports. During the same period, textile and textile product (TPT) exports reached US$4.79 billion, generating a trade surplus of approximately US$962 million.
The United Kingdom has emerged as one of Indonesia’s promising textile markets. Indonesian textile exports to the UK grew 2.43 percent in January–May 2026, producing a surplus of around US$69 million.
Director of Manufactured Product Export Development Deden Muhammad Fajar Shidiq said international competitiveness is no longer determined solely by price.
“Global consumers increasingly consider sustainability, transparency, and supply chain traceability when choosing products. These factors will determine the future competitiveness of Indonesian textile products,” he said.
Indonesia is also strengthening its position ahead of the completion of the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) negotiations, which is expected to provide wider market opportunities for Indonesian exporters.
Building Trust in Global Fashion Supply Chains
Indonesian Ambassador to the United Kingdom, Ireland, and the International Maritime Organization (IMO) Desra Percaya said the adoption of Digital Product Passport represents an important opportunity for Indonesia’s fashion industry to move higher in the global value chain.
Through DPP, consumers will be able to access reliable information about products through digital platforms, including details on materials, production methods, and sustainability performance.
“The government remains committed to supporting exporters through trade promotion, capacity building, and international partnerships to ensure Indonesian businesses are ready to meet new market standards,” Desra said.
Industry experts highlighted that consumer behavior in major fashion markets is changing rapidly.
Chloe Jones, designer at Nobody’s Child, said consumers in the UK are becoming increasingly selective and are placing greater importance on ethical production, sustainability, product quality, and brand authenticity.
She encouraged Indonesian fashion companies to develop strong identities and consistent brands rather than simply following short-term global trends.
Meanwhile, Nobody’s Child founder Andrew Xeni said Digital Product Passport represents the next evolution of sustainability practices in the fashion industry.
According to him, DPP will allow consumers to access product information through QR codes, covering material origins, manufacturing processes, certifications, and environmental impacts.
He also warned that similar traceability requirements could expand beyond Europe, potentially influencing markets such as the UK, Australia, Japan, China, and parts of the United States.
Indonesia’s Competitive Advantage
Chairwoman of the Indonesian Garment and Textile Association (AGTI) Anne Patricia Sutanto said Indonesia has strong foundations to compete in the new era of sustainable fashion.
The textile and garment sector contributed approximately 4.37 percent of Indonesia’s GDP in 2025, supported by an integrated supply chain, skilled workers, and capabilities in garments, knitted fabrics, woven textiles, and synthetic fibers.
She believes trade agreements, including IEU-CEPA, will provide new opportunities while encouraging Indonesian manufacturers to meet higher international standards.
Beyond export expansion, Indonesia is also strengthening domestic industrial resilience through trade safeguard measures.
The Ministry of Trade has emphasized that safeguard policies provide temporary protection for local industries facing serious challenges from sudden increases in imports, in accordance with World Trade Organization (WTO) rules.
Indonesia’s trade relationship with the United Kingdom continues to show positive momentum. Total bilateral trade reached US$1.08 billion in January–May 2026, with Indonesian exports at US$654.8 million, resulting in a surplus of US$231.2 million.
Throughout 2025, Indonesia–UK trade reached US$1.6 billion, with Indonesia recording a surplus of nearly US$530 million.
As global fashion markets enter a new era defined by sustainability and digital transparency, Indonesia is positioning its textile industry not only as a supplier of products, but as a trusted partner in the future of responsible global manufacturing. (AT Network)
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