Indonesia Strengthens Protection for Domestic Market Against Illegal Imports

Government's Commitment to Local Industries

Finance Minister Purbaya Yudhi Sadewa has reaffirmed the government's commitment to protecting Indonesia's domestic market from the surge of illegal imports. Speaking at the Ecoverse 2025 event in Jakarta, Purbaya emphasized that Indonesia's economy is primarily driven by domestic demand, which accounts for about 90% of economic activity ¹

. He stressed that allowing foreign goods to dominate the local market would result in significant economic losses for Indonesia.

Rejection of Used Clothing Imports Legalization

In a related development, Trade Minister Budi Santoso clarified that the government will not legalize the import of used clothing, despite demands from local thrift shop traders who offered to pay taxes on these imports. Budi explained that the prohibition on used clothing imports is based on Trade Law No. 7/2014, which explicitly bans such imports regardless of tax payments ²

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Economic Rationale and Impact

The government's stance is driven by the need to protect domestic industries and maintain economic stability. By prioritizing local producers, the government aims to ensure that the economic benefits remain within the country. This approach is expected to support local businesses and workers, contributing to overall national economic well-being.