Key takeaway: The government aims to craft a policy that curbs illegal imports without destabilising small merchants who rely on the secondhand clothing trade.
Indonesia’s Minister for MSMEs, Maman Abdurrahman, signalled a more conciliatory approach to the country’s contentious thrifting debate during a visit to Jakarta’s Senen Market. While imported secondhand clothing remains illegal, he stressed that any policy shift must both uphold regulations and protect the thousands of small traders who depend on the business.
His field visit follows President Prabowo Subianto’s directive to avoid interventions that disrupt economic activity. Merchants urged the minister to ensure their livelihoods are not jeopardised, arguing that thrifting forms part of the broader MSME ecosystem.
The issue has sharpened in recent weeks. Parliament heard appeals from secondhand clothing sellers insisting that a full ban would undermine rural and urban informal economies. In contrast, Finance Minister Purbaya Yudhi Sadewa has ruled out legalisation—even with import duties—citing risks of illegal market expansion and harm to domestic manufacturing.
The tension reflects a structural dilemma: Indonesia must protect local industries from uncontrolled imports while supporting a large, informal retail sector that cushions urban employment and provides low-cost clothing for consumers.
Abdurrahman said no immediate measures would be taken. Instead, his ministry will develop a “best formula” that balances compliance with economic continuity. The process will involve continued consultation with merchants and line ministries. The eventual outcome will signal how the new administration intends to manage the intersection of informality, trade rules, and industrial policy—an increasingly critical challenge as Indonesia seeks both job creation and manufacturing resilience.
