Government Initiative to Transform Pasar Senen into Local Brand Hub

Background and Current Market Composition

The Indonesian government is planning to transform Pasar Senen, currently known for its thrift market, into a hub for local brands. This move follows the government's efforts to regulate the sale of imported used goods, including clothing ²

. According to Temmy Satya Permana, Deputy for Small Enterprises at the Ministry of Cooperatives and SMEs, the market currently comprises 60% imported used clothing and 40% local products, including deadstock items from major brands ²

Source 2

https://finance.detik.com/berita-ekonomi-bisnis/d-8218401/pedagang-thrifting-bakal-jual-produk-lokal-kita-nggak-keberatan-tapi

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Thrifting Traders' Response

Rifai Silalahi, a thrifting trader at Pasar Senen, expressed that traders are not opposed to switching to local products but are concerned about whether these products will be accepted by their customer base ¹

. Silalahi highlighted the need for market adjustment, as consumers are accustomed to thrift products. This sentiment is echoed in the government's understanding that local brands need better market access and visibility ²

Source 2

https://finance.detik.com/berita-ekonomi-bisnis/d-8218401/pedagang-thrifting-bakal-jual-produk-lokal-kita-nggak-keberatan-tapi

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Challenges and Opportunities

Temmy explained that local brands have been hesitant to open physical stores due to high investment costs, limiting consumer access to quality local products ²

. The government's plan aims to address this by creating a dedicated space for local brands at Pasar Senen. This initiative could provide local brands with increased exposure and help shift consumer preferences towards domestic products.