Indonesia to Transition Thrifting Businesses to Local Product Sales

Government Initiative to Boost Domestic Industry

The Indonesian government, through the Ministry of Micro, Small, and Medium Enterprises (MSMEs), is set to implement a significant policy shift in the retail sector. The plan involves transitioning approximately 900,000 thrifting businesses currently selling imported used clothing to become sellers of local MSME products. This initiative aims to stimulate domestic industry growth while simultaneously addressing concerns about the influx of illegal imported goods.

Supporting the Transition

To facilitate this transition, the government will provide capital assistance and establish partnerships with established MSMEs. According to Helvi Yuni Moraza, Deputy Minister for MSMEs, the ministry has already begun outreach efforts to guide thrifting businesses through this change. The government is working to ensure that these businesses can maintain their livelihoods while shifting their product offerings.

Impact on Thrifting Businesses and Families

The policy is expected to have a significant impact on the approximately 900,000 thrifting entrepreneurs and their families, potentially affecting the livelihoods of around 3.6 million people. The government recognizes the challenge this poses and is committed to implementing a phased transition to minimize disruption. By partnering thrifting businesses with established MSMEs, the government aims to create a smoother transition and provide ongoing support.

Economic and Industry Implications

This initiative is part of a broader effort to promote domestic industry and reduce the dominance of imported goods in the market. The policy reflects the government's commitment to supporting local businesses and fostering economic growth through the development of the MSME sector. As the transition progresses, it is expected to have far-reaching implications for the retail industry and the overall economy.