Government Initiative to Transform Thrifting Market

Supporting Local Brands

The Indonesian government, through the Ministry of Cooperatives and SMEs, is implementing a comprehensive plan to shift traders from selling imported used clothing to promoting local brands. This initiative involves preparing 1,300 local brands to supply products to former thrifting traders ³

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Source 4

https://finance.detik.com/berita-ekonomi-bisnis/d-8216355/pasar-senen-mau-disulap-jadi-pusat-brand-lokal-harga-lebih-murah-dari-mal

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Current Market Composition

At Pasar Senen, currently known for its used clothing market, the trade composition stands at 60% imported used clothing and 40% local products ²

. The ministry is working on a business-to-business (B2B) scheme that will allow these traders to become either resellers or distributors for local brands. This transition aims to maintain the livelihoods of thrifting traders while promoting Indonesian products.

Rationale Behind the Policy

Deputy for Small Enterprises at the Ministry of Cooperatives and SMEs, Temmy Satya Permana, explained that the popularity of thrifting is driven more by lifestyle choices rather than basic needs ¹

. The government sees this as an opportunity to channel consumer interest in unique and affordable products toward supporting local Indonesian brands.

Implementation Strategy

The ministry has consolidated around 1,300 local brands that will be available for thrifting traders to partner with ⁴

. Traders will have the flexibility to choose between becoming resellers or distributors for these brands. This strategic shift is part of the government's broader effort to regulate the import of used goods while supporting the growth of local businesses.