ID2025-0017 – Published on April 2, 2025
Following an estimated decrease of Indonesian cotton consumption in 2024/25 of 1.795 million bales, cotton consumption in 2025/26 is forecast to remain on par at 1.8 million bales. The decline is due to low global and domestic demand for Indonesian textiles and textile products, combined with tight competition with cheaper priced products in the local market, a weakening rupiah, and increased labor costs. The lack of a clear and consistent regulatory framework to support the textile industry in weathering the sustained downturn in textile demand will lead to further decline in cotton imports, which are forecast to decrease two percent to 1.8 million bales for 2025/26. The United States is the third largest supplier of cotton to Indonesia and the second largest importer of cotton fabrics from Indonesia.
