Fabric under strain – Indonesia’s textile industry hit by rising costs amid Iran conflict

Rising Textile Costs in Jakarta

Textile prices in Jakarta are rising due to increased shipping costs, leading to a surge in the cost of synthetic fabrics, dyes, and raw materials following supply chain disruptions and rising crude oil prices linked to the Iran conflict.

Inside the Thread Mill

Footage filmed on Monday shows a working day at a thread mill, with employees overseeing machines that weave threads.
“Due to the war between America and Iran, commodity prices have soared, including the essential raw materials for our yarn. We’ve seen a steady climb, what used to be 24,000 IDR (approximately $1.39) is now 27,000 IDR ($1.57 approx) per kilogram,” Safrudin, owner of the spinning mill, said.

“The outlook suggests prices will continue to rise, and once they go up, they rarely come back down,” he continued.

Sharp Increase in Raw Material Prices

According to Safrudin, prices for raw materials have increased significantly.
“Look at the price of plastic, for instance, we need it to package yarn for shipping.

It has jumped from 37,000 IDR ($2.15 approx) to 54,000 IDR ($3.14 approx) per kilogram,” he added.
The owner of the spinning mill urged officials to conduct field surveys to understand the situation on the ground.

Global Conflict and Supply Chain Disruptions

The disruption follows joint US-Israeli military operations against Iran on February 28. Iran responded with strikes on Israeli territory and US interests in the region.

Tehran has since restricted transit through the Strait of Hormuz, while the US Navy has maintained a blockade of Iranian ports, despite a ceasefire agreement.

The conflict has significantly affected global supply chains, particularly through the Strait of Hormuz, a vital chokepoint through which around one-fifth of the world’s oil supply passes, driving up global energy prices and raising fears of wider economic fallout.