Indonesia has the potential to strengthen its position as a global hub for modest fashion as demand for Muslim-friendly clothing continues to expand worldwide, according to the country’s Ministry of Industry.
Industry Minister Agus Gumiwang Kartasasmita said Indonesia’s strong domestic textile ecosystem, creative fashion industry and growing international demand for modest apparel provide strategic opportunities for the country to become a major player in the sector.
Speaking in Jakarta, the minister said the expansion of the global Muslim population and the rising influence of social media have accelerated the growth of the modest fashion market, transforming it into a mainstream clothing segment that appeals to consumers beyond religious boundaries.
“Modest fashion now has a very large global market and continues to grow, creating opportunities for Indonesia not only to become a producer but also a global trend center,” Kartasasmita said.
According to the State of the Global Islamic Economy Report 2024/2025, global spending on Muslim fashion reached approximately $327 billion in 2023 and is projected to grow to $433 billion by 2028.
The report highlights the rapid expansion of the modest fashion industry as Muslim consumers increasingly seek clothing that aligns with religious values while maintaining modern fashion aesthetics. At the same time, modest clothing styles are also gaining popularity among non-Muslim consumers due to their versatility, comfort and cultural appeal.
Industry experts say modest fashion has evolved significantly in recent years, driven by social media influencers, global fashion brands and independent designers who have helped bring modest styles into mainstream fashion markets.
Indonesia, home to the world’s largest Muslim population, is widely seen as having strong potential to lead the modest fashion industry, both as a manufacturing base and as a creative hub for designers and fashion entrepreneurs.
The country’s modest fashion exports have already shown notable growth in recent years. According to the Indonesian Ministry of Industry, exports of modest fashion products to member countries of the Organisation of Islamic Cooperation (OIC) reached $990 million in 2023.
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This marked an increase of around 83 percent compared with export levels of $540 million recorded in 2022, placing Indonesia among the top exporters of modest fashion products to OIC markets.
Despite this progress, Indonesia still faces strong competition from other major textile-producing countries. China, Türkiye and India currently dominate exports of modest fashion and related textile products to OIC markets.
Government officials say strengthening Indonesia’s domestic textile industry and expanding global market access will be key to improving the country’s competitiveness in the sector.
Reni Yanita, Director General for Small, Medium and Miscellaneous Industries at the Ministry of Industry, said Indonesia’s modest fashion industry is supported by a large network of small and medium-sized enterprises across the country.
According to data from Statistics Indonesia, the country had approximately 594,000 small garment businesses operating in 2024. These enterprises collectively employed around 1.2 million workers, making the sector an important contributor to employment and local economic activity.
Yanita said the modest fashion industry has also become a labor-intensive sector that supports the development of creative industries, small manufacturers and independent designers.
“Indonesia has the potential to become one of the key players in the global modest fashion industry,” she said.
She noted that modest fashion has evolved into a global style movement that appeals to consumers across cultures, not only Muslim communities.
“The concept of modest fashion is becoming more inclusive and can be adapted to various lifestyles, cultures and personal preferences,” Yanita added.
Indonesia’s cultural diversity and traditional textiles are also seen as important advantages in the development of the modest fashion industry.
Local fabrics such as batik, songket and tenun have increasingly been incorporated into modern modest fashion designs, helping Indonesian designers create products that combine cultural heritage with contemporary style.
Fashion analysts say that integrating traditional craftsmanship with modern fashion design could help Indonesian brands stand out in the increasingly competitive global modest fashion market.
In addition to domestic industry development, Indonesia has also promoted modest fashion through international fashion events and exhibitions. Government agencies and fashion associations have supported programs aimed at showcasing Indonesian modest fashion designers on global platforms.
Industry observers say the growing popularity of modest fashion represents a broader shift in consumer preferences toward more inclusive, comfortable and culturally expressive clothing.
As the global modest fashion market continues to expand, Indonesia’s combination of a large domestic consumer base, strong textile heritage and a rapidly developing fashion industry could help the country strengthen its position as a leading center for modest fashion innovation and production.
