ABSTRACT
This chapter is concerned with the garment industry, which has epitomised Indonesia’s move to a more export-oriented economy since the mid-1980s. Garments, the dominant component of textiles, are the manufacturing industry’s largest single export earner. the Economic Census 1986 and the ‘backcasted’ yearly Industrial Survey are used to discuss the garment industry’s structure and conduct, followed by an analysis of relevant government policies. Garments are the ‘classic’ early industry of industrialising Third World economies. In the 1970s, Third World garment exporters faced increasing competition from new entrants and protectionist measures from advanced capitalist economies. The industry’s entry into large scale garment production has been driven by increased export opportunities and a growing demand from Indonesia’s expanding urban middle class. The marketing and supply channels of small-scale garment enterprises are located in several distinct areas. In design and fashion also, large and small garment enterprises interviewed had different approaches.
