Manufacturers applaud the move, but thrift sellers and low-income shoppers fear economic fallout
Indonesia is tightening enforcement against illegally imported second-hand clothing, blamed for damaging its domestic textile industry. The Finance Ministry plans to issue a new regulation reinforcing the 2022 Trade Ministry ban on used apparel imports, enabling authorities to blacklist importers involved in smuggling.
“We know who the players are. Anyone involved in used-clothes smuggling will be blacklisted,” said Finance Minister Purbaya Yudhi Sadewa on October 22. The government argues that jailing offenders and destroying seized goods has been costly, shifting its focus instead to prevention and economic deterrence.
The crackdown follows the seizure of 2,584 shipments of illegal clothing and bags this year, worth nearly US$2.9 million, though authorities admit many shipments still slip through weakly monitored entry points. Imports of used clothing reached US$1.5 million in 2024, with volumes surging in 2025 as economic hardship drives demand for cheap, foreign-made garments.
At Jakarta’s Pasar Senen, one of the country’s largest thrift markets, traders say the new policy could devastate their livelihoods. “If used-clothes imports are banned, buyers will flee,” said one seller. For many young consumers, thrifting offers affordable access to quality or vintage fashion otherwise priced far beyond reach.
The Indonesian Textile Association supports the crackdown, warning that imported second-hand clothes have eroded domestic market share and forced 60 textile firms to close, costing 250,000 jobs since 2023. Economist Esther Sri Astuti estimates imported clothing has cut the local industry’s market share by 15%, calling for tax incentives and cost reductions to help domestic producers compete.
The government says it will help thrift vendors transition to selling locally made apparel, with President Prabowo Subianto directing the Ministry of Cooperatives and SMEs to prepare substitute products. The challenge now lies in balancing industrial protection with social welfare—protecting manufacturers without crushing the livelihoods of small thrift traders and low-income consumers who rely on them.
