TEMPO.CO, Jakarta - The textile and textile product (TPT) industry is under heavy pressure following a sharp increase in raw material prices. This is due to the conflict in the Middle East, which has pushed the price of global oil to around US$110 per barrel.
The Chairperson of the Indonesian Filament Yarn and Fiber Producers Association, Redma Gita Wirawasta, stated that the price of paraxylene, the main raw material for polyester, has now reached US$1,300 per ton. He mentioned that this figure has risen by about 40 percent in just the last two weeks.
"Within the next week, it will be felt by fabric producers, and then two weeks later it will affect the garment sector," he said, as quoted from a written statement on Tuesday, April 7, 2026.
Although the price hike has occurred upstream, its impact has not yet been fully felt in the downstream industry. Redma explained that the effects of the price increase will gradually spread over the next few weeks.
Redma stated that this price increase is also expected to affect retail prices. Textile product prices may increase by up to 10 percent due to adjustments in production costs.
Despite the price pressure, he noted that market demand remains relatively stable and is even trending upward due to the increase in imported raw material prices, which makes local products more competitive. The availability of domestic raw materials such as polyester and rayon is also secure.
However, Redma pointed out that the industry's condition has not fully recovered. National polyester producers are operating at less than 40 percent capacity, while rayon producers are operating at around 70 percent capacity. Redma mentioned that many factories that have stopped operations have not resumed due to what is considered unhealthy market practices.
"Currently, surviving producers only serve loyal consumers. Meanwhile, users of imported raw materials have not yet become a priority," he said.
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