The SDGs Movement in Indonesian Textile Industry: A Case Study of Duniatex

The textile industry is one of the most significant contributors to global economic growth but also one of the most resource-intensive and polluting sectors.

The textile industry is one of the most significant contributors to global economic growth but also one of the most resource-intensive and polluting sectors. Indonesia, a major player in the global textile industry, is facing increasing pressure to adopt sustainable practices as the environmental and social impact of the sector becomes more apparent. The United Nations’ Sustainable Development Goals (SDGs), adopted in 2015, provide a framework for addressing these challenges by promoting sustainable economic growth, reducing inequality, and protecting the environment. In Indonesia, companies like Duniatex are beginning to align their business practices with the SDGs to meet global demands for sustainable textiles. This article explores the SDGs movement within the Indonesian textile industry, with a particular focus on Duniatex, and examines how the company is working toward sustainability.

The Indonesian Textile Industry and the SDGs

Indonesia’s textile and garment sector plays a crucial role in the country’s economy, contributing approximately 6% of its gross domestic product (GDP) and employing more than three million people (Indonesian Ministry of Industry, 2021). The industry has also been one of the nation’s top exports, making Indonesia a key supplier of textiles and garments to the global market. However, the environmental and social costs of textile production are substantial, with the industry being a major consumer of water, energy, and chemicals, as well as a significant source of pollution (UNDP Indonesia, 2020).

The United Nations’ Sustainable Development Goals (SDGs) provide a comprehensive framework for addressing the economic, social, and environmental challenges facing industries like textiles. The 17 SDGs set global targets that include eradicating poverty, achieving gender equality, promoting responsible consumption and production, and combating climate change, among others (United Nations, 2015). For the textile industry, specific goals such as SDG 6 (Clean Water and Sanitation), SDG 8 (Decent Work and Economic Growth), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action) are particularly relevant (UNDP Indonesia, 2020).

In Indonesia, the government has incorporated the SDGs into its national development plans, urging industries to adopt more sustainable practices. As a result, companies in the textile sector are increasingly being called upon to improve their environmental and social performance, reduce their carbon footprint, and enhance labor conditions. The movement

toward sustainability in Indonesia’s textile industry is gaining momentum, with several leading companies, including Duniatex, at the forefront of this transformation.

Duniatex: A Leading Player in Indonesia’s Textile Industry

Duniatex is one of Indonesia’s largest and most well-known textile manufacturers, with a production capacity that spans various stages of the textile supply chain, including spinning, weaving, dyeing, and finishing (Duniatex, 2020). The company was founded in 1974 and has since grown to become a dominant force in the Indonesian textile industry, employing thousands of workers and exporting its products to markets around the world.

However, as with many large textile companies, Duniatex has faced challenges related to its environmental and social impact. The company operates in a highly resource-intensive industry, with significant consumption of water and energy, as well as the use of hazardous chemicals in the production process. In recent years, Duniatex has begun to shift its focus toward sustainability, aligning its business practices with the SDGs to reduce its environmental footprint and improve the welfare of its workers.

Duniatex and the SDGs: Key Areas of Focus

1. SDG 6: Clean Water and Sanitation

One of the primary environmental challenges facing the textile industry is water consumption and pollution. The dyeing and finishing processes, in particular, require vast amounts of water and often result in the discharge of untreated wastewater containing harmful chemicals into rivers and other water bodies (Khan et al., 2018). Indonesia has been grappling with water pollution from industrial activities, and the textile industry is a significant contributor to this issue.

Duniatex has recognized the importance of water conservation and wastewater management as part of its sustainability efforts. The company has invested in advanced wastewater treatment technologies to ensure that the water used in its production processes is treated before being discharged. This initiative aligns with SDG 6, which aims to improve water quality by reducing pollution, eliminating dumping, and minimizing the release of hazardous chemicals (United Nations, 2015).

In addition to wastewater treatment, Duniatex is working to reduce its overall water consumption by adopting more efficient dyeing and finishing processes. This includes the use of water-saving technologies and the recycling of water within its production facilities.

These measures are critical in addressing Indonesia’s broader water scarcity challenges, particularly in regions where water resources are limited.

2. SDG 8: Decent Work and Economic Growth

The textile industry in Indonesia is a major source of employment, particularly for women, who make up a significant portion of the workforce. However, labor conditions in the industry have historically been a concern, with issues such as low wages, long working hours, and poor working conditions being prevalent (ILO, 2019). SDG 8 calls for the promotion of sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

Duniatex has taken steps to improve the working conditions of its employees as part of its commitment to SDG 8. The company provides its workers with fair wages, benefits, and opportunities for skill development. In recent years, Duniatex has also implemented policies to promote gender equality in the workplace, ensuring that women have equal access to employment opportunities and are not discriminated against in terms of pay or career advancement.

Moreover, the company has made efforts to ensure that its supply chain is free from child labor and forced labor, both of which are critical issues in the global textile industry. By adhering to international labor standards and working with suppliers who share its commitment to ethical labor practices, Duniatex is contributing to the creation of a more sustainable and equitable textile industry in Indonesia.

3. SDG 12: Responsible Consumption and Production

The concept of responsible consumption and production is central to the sustainability movement in the textile industry. SDG 12 emphasizes the need to reduce waste, promote resource efficiency, and minimize the environmental impact of production and consumption patterns (United Nations, 2015). For the textile industry, this involves adopting more sustainable production processes, reducing the use of hazardous chemicals, and promoting the circular economy.

Duniatex has embraced several initiatives aimed at promoting responsible consumption and production. One of the key areas of focus for the company has been reducing its use of harmful chemicals in the dyeing and finishing processes. By switching to eco-friendly dyes and chemicals, Duniatex is reducing its environmental footprint and minimizing the release of toxic substances into the environment. This is in line with SDG 12, which encourages industries to adopt sustainable practices and integrate sustainability information into their reporting cycle (United Nations, 2015).

In addition to reducing its chemical usage, Duniatex is also working to minimize waste throughout its production process. The company has implemented recycling programs to reduce textile waste and is exploring ways to incorporate more sustainable materials into its products. These efforts are helping to reduce the environmental impact of the company’s operations and contribute to the global shift toward a more circular textile economy.

4. SDG 13: Climate Action

Climate change is one of the most pressing global challenges, and the textile industry is a significant contributor to greenhouse gas emissions, primarily due to its energy-intensive production processes. SDG 13 calls for urgent action to combat climate change and its impacts by reducing carbon emissions and promoting sustainable practices (United Nations, 2015).

Duniatex has begun to address its carbon footprint by investing in renewable energy sources and improving energy efficiency within its operations. The company has installed solar panels at several of its production facilities to reduce its reliance on fossil fuels and lower its greenhouse gas emissions. Additionally, Duniatex is exploring the use of energy-efficient technologies in its manufacturing processes, such as advanced machinery that consumes less energy.

By aligning its business practices with SDG 13, Duniatex is contributing to Indonesia’s broader efforts to combat climate change. The Indonesian government has committed to reducing its greenhouse gas emissions by 29% by 2030 as part of its Nationally Determined Contributions (NDCs) under the Paris Agreement (Ministry of Environment and Forestry, 2020). The efforts of companies like Duniatex to adopt more sustainable practices are crucial in helping the country meet these targets.

Challenges and Opportunities for Sustainable Textile Production in Indonesia

While Duniatex and other companies in the Indonesian textile industry have made progress in aligning with the SDGs, significant challenges remain. One of the key challenges is the high cost of implementing sustainable technologies and practices. Many small and medium-sized enterprises (SMEs) in the industry lack the financial resources to invest in energy-efficient machinery, wastewater treatment facilities, and other sustainable infrastructure (Khan et al., 2018).

Another challenge is the need for greater collaboration between stakeholders, including the government, private sector, and civil society, to create an enabling environment for sustainable textile production. The Indonesian government has a critical role to play in providing incentives for companies to adopt sustainable practices, such as tax breaks, subsidies, and grants for green technology adoption. Additionally, stronger regulations and enforcement mechanisms are needed to ensure that all companies in the industry adhere to environmental and labor standards.

Despite these challenges, there are significant opportunities for growth and innovation in the sustainable textile sector in Indonesia. The global demand for sustainable textiles is increasing, with consumers becoming more conscious of the environmental and social impact of the products they purchase. This presents an opportunity for Indonesian textile companies to differentiate themselves in the global market by adopting sustainable practices and producing eco-friendly textiles.

Furthermore, advances in technology are creating new possibilities for sustainable textile production. Innovations in materials science, such as the development of biodegradable fabrics and waterless dyeing technologies, have the potential to revolutionize the industry and significantly reduce its environmental impact. Companies that are able to leverage these technologies will be well-positioned to thrive in the emerging green economy.

Sekarsari Sugihartono
Sekarsari Sugihartono
I am an international relations master's student at Gadjah Mada University. My interests are SDGs and International Trade Dispute.