28 This paper examines the Indonesia's textiles and its products (TPT) industry. It will highlight industrialization and sectoral changes in Indonesia since 1968. The supply chain of TPT industry, from the upstream to downstream, will be discussed. In terms of trade, TPT products always on the top ten Indonesia's non-oil exports. It is followed by identification of major clusters in the Indonesia’s TPT industry. Some key challenges in facing Indonesia’s TPT industry, in particular new competitions from abroad, will be evaluated. A special emphasis is put on assessing Indonesia’s competitiveness relative to its main competitor in the industry. The final sections discuss the impacts of the industry’s growth performance on employment and assess future prospects of the industry https://ijbed.org/details&cid=28 https://ijbed.org/cdn/article_file/i-3_c-28.pdf Volume 01 Issue 3 3 2013-11-01 2014-03-03 no Indonesia textile TPT trade competitiveness cluster none 5672 1 0 Mudrajad Kuncoro Faculty of Economics & Business, Gadjah Mada University, Yogyakarta