Indonesia's Domestic Market Overwhelmed by Chinese Imports

UMKM Minister Sounds Alarm on Import Surge

The Indonesian domestic market is facing an unprecedented surge in imported products, particularly from China, according to Maman Abdurrahman, Minister of Micro, Small, and Medium Enterprises (UMKM). Speaking at the KADIN Rapimnas 2025 event held at The Park Hyatt Hotel Jakarta, Maman revealed that products such as hijabs and batik from China are increasingly dominating local markets. The minister expressed concern that unless immediate action is taken to control these imports, local businesses, particularly in the fashion sector, will continue to suffer.

Fashion Sector Most Affected by Import Influx

Maman specifically pointed out that the fashion industry is among the most affected, with clothing, pants, underwear, shoes, sandals, and accessories being imported in large quantities. The minister stressed that even with robust government support for UMKM, such efforts would be rendered ineffective if the domestic market remains vulnerable to cheap imports. The current situation poses a significant challenge to Indonesia's economic development, particularly in empowering local enterprises and preserving traditional industries like batik-making.

Call for Market Protection

The minister's statement underscores the urgent need for market protection measures to safeguard local businesses from being overwhelmed by foreign products. Maman's concerns highlight the broader issue of trade imbalance and the need for a comprehensive strategy to support domestic industries while complying with international trade regulations. As the government deliberates on potential measures, stakeholders across various sectors are closely monitoring the situation, anticipating policy responses that could reshape Indonesia's trade dynamics.