Indonesian Government Tightens Grip on Thrifting Amid Economic Concerns

Regulatory Crackdown

The Indonesian government is intensifying its crackdown on thrifting activities, citing concerns over lost tax revenue and the potential economic impact of the booming second-hand clothing trade. Finance Minister Purbaya Yudhi Sadewa emphasized that the government will continue to control illegal imported used clothing, stating, "I don't care about the thrifting business; what I control is illegal goods entering Indonesia" ¹

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Digital Platform Regulation

Communication and Digital Minister Meutya Hafid confirmed that the government will enforce regulations on digital platforms, including social media accounts that violate the thrifting ban ²

. The government has made it clear that the prohibition on thrifting applies not only to physical stores but also to online platforms such as e-commerce and social media.

Traders' Plea for Legalization

Contrary to the government's stance, thrifting traders have been advocating for the legalization of their business. During a meeting with the People's Aspirations Body (BAM) of the DPR on November 19, 2025, traders expressed their willingness to pay taxes if their operations were legalized ³

. Rifai Silalahi, one of the traders, highlighted that the thrifting business involves approximately 7.5 million people across Indonesia, suggesting that legalization could be a more viable solution than outright prohibition.

Economic and Social Implications

The thrifting industry has grown significantly in Indonesia, with millions of people relying on it for their livelihood. While the government is concerned about the loss of tax revenue from these unregulated activities, traders argue that legalization could actually increase state revenue through taxation. The debate highlights the complex balance between economic regulation and social welfare in Indonesia's rapidly evolving retail landscape.