Indonesian Government Takes Strong Stance Against Illegal Used Clothing Imports

Crackdown on Illegal Imports

The Indonesian government has launched a comprehensive crackdown on illegal used clothing imports, with Minister of Finance Purbaya Yudhi Sadewa announcing plans to tighten port surveillance and investigate those responsible for the illegal imports ²

. This decisive action comes as the government aims to protect domestic markets and support local industries.

Protecting Local Industries

Purbaya emphasized that Indonesia's economy is primarily driven by domestic demand, which accounts for 90% of economic activity ³

. He stressed that allowing illegal imports to dominate the market would result in significant losses for the country, as the majority of the profits would go to foreign entities. The government is committed to ensuring that the domestic market remains controlled by local producers.

Impact on Consumers and Local Businesses

Minister for SMEs Maman Abdurrahman explained that once the supply of illegal used clothing is cut off, consumers will naturally shift to local products due to the principles of economic law ¹

. This transition is expected to boost the local textile industry and support small and medium-sized enterprises (SMEs). While some concerns have been raised about potential price increases, the government believes the long-term benefits to the economy will outweigh these short-term challenges.

Enforcement and Investigation

The Ministry of Finance plans to conduct thorough investigations to identify and prosecute those involved in the illegal importation of used clothing ²

. By strengthening surveillance at ports and improving regulatory enforcement, the government aims to eliminate the illegal importation of used clothing and create a more level playing field for local businesses.