Jakarta, INTI - The development of the fashion industry, particularly small and medium-scale enterprises across various regions of Indonesia, needs to be continuously encouraged so that domestic businesses can fully capture and maximize national market potential. The Ministry of Industry, through the Directorate General of Small, Medium, and Miscellaneous Industries (IKMA), has consistently implemented a range of strategic initiatives to sustain growth and ensure the long-term viability of the national fashion industry.
These initiatives include technical guidance programs, facilitation of machinery and equipment, certification based on the Indonesian National Work Competency Standards (SKKNI), and the development of small and medium industry (SMI) centers through the Special Allocation Fund (DAK) scheme, in collaboration with local governments.
Minister of Industry Agus Gumiwang Kartasasmita stated that the inauguration of the Seri Kuala Lobam Fashion Industry Center in Bintan Regency, Riau Islands, is part of the government’s broader strategy to strengthen a national fashion industry ecosystem rooted in regional potential.
He emphasized that the development of SMI centers plays a strategic role in increasing production capacity, improving product quality, and enhancing the competitiveness of small and medium industry players, enabling them to meet both domestic and international market demands.
“We continue to encourage the strengthening of SMI centers as sustainable regional industrial growth hubs, while also serving as a means to increase added value and create employment,” the minister said in a statement on Tuesday, January 27, 2026.
Echoing this view, IKMA Director General Reni Yanita explained that the Seri Kuala Lobam Fashion Industry Center will serve as a strategic production hub capable of reinforcing the competitiveness of Indonesia’s fashion SMIs. She also expressed appreciation for the synergy between the Ministry of Industry, the Bintan Regency Government, and the Riau Islands Provincial Government in developing the center.
“We are promoting this center as a shared production facility as well as a platform to enhance the capacity of SMI players, ranging from access to production facilities and technical training to the strengthening of business management,” Reni said during the inauguration of the Seri Kuala Lobam Fashion Industry Center in Bintan Regency on Wednesday, January 21, 2026.
Fashion Industry’s Role in National Economic Growth
The Director General of IKMA added that the fashion industry makes a significant contribution to community economic activity and overall national economic growth. Data from the Ministry of Industry shows that the ready-made garment SMI sector comprises around 590,000 business units, employing approximately 1.2 million workers. “Therefore, the development of SMI centers represents a concrete step to strengthen the role of this sector within the national industrial structure,” she said.
Reni explained that budgetary support and facilities for the development of the Seri Kuala Lobam Fashion Industry Center are being provided through the physical Special Allocation Fund (DAK) mechanism for the 2024 and 2025 fiscal years. In addition to physical infrastructure development, the government will also channel non-physical DAK funding in the 2025 fiscal year to support the institutional capacity building of the center’s management.
The Seri Kuala Lobam Fashion Industry Center offers several competitive advantages, including modern production facilities equipped with machinery and equipment to support product quality standardization, a strategic location, and its position within the Kuala Lobam Free Trade Zone (FTZ), which provides zero-percent export and import duties.
Furthermore, its geographical proximity to key export destination countries such as Malaysia, Singapore, and the Philippines helps improve logistics cost efficiency. “These advantages are expected to serve as a catalyst for fashion SMI players in Bintan Regency to enhance competitiveness and expand access to export markets,” she stated.
The inauguration of the Seri Kuala Lobam Fashion Industry Center was attended by Bintan Deputy Regent Deby Maryanti, Chair of the Bintan Regency Dekranasda Fiven Sumanti, and other local government officials. Budi Setiawan, Director of Chemical, Textile, and Craft SMIs at the Directorate General of IKMA, noted that although the center was only recently inaugurated, it has already received a strong performance assessment, scoring 4 out of 5 in the fourth quarter of 2025 due to its regular operations.
“Going forward, we hope this center will serve as a bridge for SMI players to enter the supply chains of large industries within industrial estates, while also fostering mutually beneficial and sustainable partnerships,” Budi concluded.
Conclusion
The development of the Seri Kuala Lobam Fashion Industry Center reflects the Indonesian government’s broader strategy to strengthen the national fashion ecosystem by empowering small and medium industries. Through targeted funding, modern infrastructure, and strategic positioning within a free trade zone, the center is expected to enhance competitiveness, expand export access, and integrate local fashion SMIs into larger industrial supply chains, contributing to sustainable economic growth and job creation.
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