The government has reiterated its determination to eradicate the circulation of imported used clothing, which has long flooded the domestic market and harmed the national textile industry. This time, Minister of Finance Purbaya Yudhi Sadewa is at the forefront, bringing "strong medicine" in the form of stricter regulatory policies and law enforcement against the practice of illegal imports of used clothing, or thrifting.
Purbaya believes this step not only safeguards the textile industry but also strengthens the foundation of the national economy. In a meeting with Committee IV of the Regional Representative Council (DPD) in Jakarta, he emphasized that the government will tighten supervision and completely close the entry points for illegally imported used goods. "There are many illegal goods, including those that are subject to the presidential ban. We will close them down so that the domestic industry and domestic textiles can survive," he said firmly.
As a sign of his commitment, Purbaya also plans to strengthen existing regulations in Trade Ministerial Regulation Number 40 of 2022 concerning Goods Prohibited from Export and Import. He not only wants to clarify the ban, but also wants to add heavy fines for unscrupulous importers to prevent the country from continuing to suffer losses due to the costs of destroying confiscated goods. He also urged Customs and Excise to take firmer action against illegal importers and strengthen supervision at ports—which have long been a hotspot for the entry of used clothing from abroad.
Redma Gita Wirawasta, Chairperson of the Indonesian Filament Fiber and Yarn Producers Association (APSyFI), stated that the circulation of imported used clothing is no small problem. Data from the International Trade Center (ITC) Trademap shows that the value of illegal textile and textile product (TPT) imports reaches approximately US$2 billion, or Rp33.3 trillion, per year. Of that figure, used clothing imports contribute approximately US$300 million, or Rp5 trillion, per year—equivalent to 900 million pieces of clothing.
The impact on the local industry is significant. Domestic garment production capacity, which reached 2.7 million tons, is now only producing around 2 million tons, a decrease of approximately 700,000 tons. This decline occurs because the domestic market is flooded with much cheaper imported used clothing. "Our industry's production has dropped by 700,000 tons due to disruptions from the sale of 18 million tons of imported used clothing," explained Redma.
However, a major question that arises is why the government seems to be struggling to eradicate this practice of imported used clothing. Economist Nailul Huda from the Center of Economic and Law Studies (CELIOS) believes the problem lies in weak oversight at ports and indications of neglect. After Trade Minister Regulation 40/2022 was enacted, used clothing imports declined in 2023. However, in 2024 and 2025, the figure rose again, reaching more than US$1.5 million in just the first eight months of the year.
"This means that when it's prohibited but still recorded, there's a violation at the port where the goods are handed over. This is already a criminal offense because there's neglect of goods that are clearly prohibited from entering," Nailul asserted.
He added that the presence of imported used clothing is making the local textile industry lose its competitiveness. The price of a single piece of used clothing from Taiwan is only around Rp1,700 to Rp2,000, and with additional costs, the cost of goods sold (COGS) is no more than Rp4,000. Meanwhile, the production cost of domestic clothing reaches Rp90,000 to Rp98,000 per piece. This significant price difference makes it nearly impossible for local products to compete in the market.
"It's better to save the domestic industry than the used clothing traders at Senen Market," Nailul stated firmly.
Now the ball is firmly in Purbaya's court. If the "powerful potion" of policies he has prepared is truly effective, it's possible the national textile industry can rebound and dominate the domestic market. However, if law enforcement remains weak, the threat of imported used clothing will continue to be a poison that weakens the Indonesian textile industry.