Jakarta: Indonesia is targeting the Saudi market to expand its modest fashion exports, the Ministry of Industry said on Tuesday, as it expects more opportunities from the growth of the garment industry in the Middle East.
Southeast Asia’s biggest economy was ranked third in the world for modest fashion, according to the 2023/24 Global Islamic Economy Report, just behind Turkiye and Malaysia. In 2024, Indonesian consumers bought more than $20 billion worth of modest fashion products, with the industry’s average annual growth estimated at about 18 percent.
Jakarta is hoping to tap into the sector’s global potential by developing its domestic modest fashion market and boosting exports to other Muslim countries, especially in the Middle East.
“Saudi Arabia is one of the biggest markets for modest fashion in the world. It’s because of their large Muslim population and high purchasing power,” Reni Yanita, director-general for small and medium industries at the Ministry of Industry, told Arab News.
“The consumer preference in Saudi Arabia leans toward modest fashion products that are high-quality, fashionable and in adherence to Islamic principles, which give huge opportunities for Indonesian products.”
Modest fashion brands in the world’s largest Muslim majority country have benefited from the popularity of digital platforms, which enable them to use e-commerce sites to reach buyers in different parts of the country.
The Indonesian government has also supported the industry’s growth through trade roadshows, by facilitating networking opportunities with potential foreign partners and sponsoring major events, including the Muslim Fashion Festival last month.
Indonesia sees big opportunities in the Saudi fashion market, which was valued at $4.25 billion in 2024 and expected to reach $5.7 billion by 2030, according to Irish data company Research and Markets.
The Kingdom’s growing fashion market reflected a trend in the Middle East, where the garment industry is valued at about $89 billion.
“With the huge potential of the Middle East market, it will surely have a positive impact on Indonesia’s economic growth … (as we) can increase the exports of Indonesian goods, including modest fashion products,” Yanita said.
“Economic cooperation with countries in the Middle East will also enhance our various bilateral relations and further increase investment in Indonesia.”