The textile industry in Indonesia is a foreign exchange earner whose exports are increasing in number. Textiles will remain a mainstay industry in the future because they are able to absorb a large number of workers compared to other industries. The modern textile industry is a capital and labor intensive industry. The investment required includes machinery, factory equipment, and a large area of ​​land. Most of the modern textile industry is operated by large investors, including foreigners. This is because it requires large capital. The textile industry is recognized as a labor-intensive industry capable of absorbing 0.82 workers for every million rupiah of investment. It is estimated that 1.5 million Indonesian workers or about 20% of the entire national workforce are absorbed in this industrial sub-sector.

The location of the textile industry is on the island of Java, especially in West Java and the Special Capital Region of Jakarta.