Indonesian Minister of Industry, Agus Gumiwang Kartasasmita, recently announced that the nation’s fashion and craft industry significantly contributed Rp 120.13 trillion to the country’s Gross Domestic Product (GDP) in the first quarter of 2026. This vital sector has also experienced a substantial surge in investment, underscoring its growing importance to the national economy.
Minister Agus made this compelling statement during the inauguration of the Fashion and Craft Industry Empowerment Center (BPIFK) Building in Badung Regency, Bali, on Friday, May 8, 2026. He emphasized the crucial role of this industry, stating, “The fashion and craft industry plays a pivotal role in supporting the national economy. In Q1 2026, the GDP from the fashion and craft industry reached Rp 120.13 trillion, marking a robust 7.89 percent increase compared to Q1 2025, when it stood at Rp 111.34 trillion.” This growth trajectory highlights the sector’s impressive resilience and dynamic expansion.
Further demonstrating its upward trend, the industry’s growth reached 4.93 percent in 2025, outpacing the 2.43 percent recorded in 2024. This positive momentum extended to investments within the sector. In the first quarter of 2026, Domestic Direct Investment (DDI) in the fashion and craft industry soared to Rp 4.83 trillion, complemented by Foreign Direct Investment (FDI) totaling Rp 9.38 trillion. This combined inflow propelled the total investment to an impressive Rp 14.21 trillion, reflecting strong investor confidence.
Agus also pointed to the robust export performance of the national fashion and craft industry early this year as another indicator of its strength. From January to February 2026, exports of ready-to-wear fashion products hit US$ 1.44 billion, while the textile industry generated US$ 0.52 billion. Significantly, the craft industry’s exports reached US$ 2.43 billion, showcasing diverse market appeal.
“These achievements clearly demonstrate that the national fashion and craft industry maintains strong competitiveness amidst the evolving dynamics of the global market,” he added, affirming the sector’s enduring appeal and quality.
Beyond its financial contributions, the Small and Medium Industries (SMEs) within the fashion and craft sector are instrumental in promoting industrial equity and generating national employment. According to data from the Central Statistics Agency (BPS) in 2024, there are 1.75 million fashion and craft SME business units, collectively employing approximately 3.69 million people across Indonesia.
Minister Agus further elaborated that the sector’s immense potential is bolstered by a resilient industrial ecosystem. This is evident from the presence of 1,825 fashion SME centers and 3,496 craft SME centers spread across various regions of Indonesia, based on 2025 data processed by the Directorate General of Small, Medium, and Miscellaneous Industries (IKMA) of the Ministry of Industry.
The newly inaugurated BPIFK is an operational unit under the Directorate General of IKMA, officially established in 2024. Its roots trace back to creative industry empowerment programs that began in 2015 through the Bali Creative Industry Center (BCIC). Bali was chosen as the ideal location for BPIFK due to its inherent potential and robust creative industry ecosystem. The province boasts 25 fashion SME centers and 197 craft SME centers, firmly establishing it as one of Indonesia’s largest hubs for creative industries.
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Summary
The Indonesian fashion and craft industry significantly contributed Rp 120.13 trillion to the national Gross Domestic Product (GDP) in the first quarter of 2026, marking a robust 7.89 percent increase from the previous year. This vital sector also attracted substantial investment, totaling Rp 14.21 trillion in Q1 2026 from both domestic and foreign direct investment. Additionally, its strong export performance early this year, with ready-to-wear fashion products reaching US$ 1.44 billion and craft exports at US$ 2.43 billion, underscores its global competitiveness.
Beyond its financial impact, the industry is crucial for employment, with 1.75 million Small and Medium Enterprise (SME) units employing approximately 3.69 million people. This vibrant sector is supported by an extensive ecosystem of fashion and craft SME centers across Indonesia. The newly inaugurated Fashion and Craft Industry Empowerment Center (BPIFK) in Badung Regency, Bali, will further bolster the industry’s potential, leveraging Bali’s robust creative industry ecosystem.