Indonesian Government Cracks Down on Imported Used Clothing and Unlabeled Products

Stricter Regulations Ahead for Importers and Traders

The Indonesian government has committed to cracking down on illegal imported used clothing (thrifting) and is working to implement stricter regulations on unlabeled imported products, particularly those from China. Minister of UMKM (Micro, Small, and Medium Enterprises) Maman Abdurrahman revealed that importers and traders are currently adopting a 'wait and see' approach to gauge the government's consistency in enforcing these regulations ¹

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Protection Measures for Local Businesses

To protect local UMKM businesses from being overwhelmed by cheap, imported goods, the government is considering two key measures:

1. Establishing a minimum retail price for certain imported products to prevent them from undercutting local goods. For example, Maman suggested setting a minimum price of Rp 15,000 for imported hijabs, as they currently sell for as low as Rp 3,000-5,000, while local products cost above Rp 15,000 ³
   Source 3

   https://finance.detik.com/berita-ekonomi-bisnis/d-8226588/menteri-umkm-sebut-pedagang-importir-pakaian-bekas-kompak-wait-and-see
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2. Increasing import duties on specific products that negatively impact local UMKM businesses. Maman has discussed this proposal with Minister of Finance Purbaya Yudhi Sadewa and Minister of Trade Budi Santoso ³
   Source 3

   https://finance.detik.com/berita-ekonomi-bisnis/d-8226588/menteri-umkm-sebut-pedagang-importir-pakaian-bekas-kompak-wait-and-see
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Enforcement and Investigation

The government is also stepping up enforcement measures. Minister of Finance Purbaya Yudhi Sadewa announced that the authorities will intensify inspections at ports to prevent illegal imports from entering the country ⁵

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Source 5

https://finance.detik.com/berita-ekonomi-bisnis/d-8225117/bereskan-pakaian-bekas-impor-ilegal-purbaya-kita-cegat-di-pelabuhan

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Director General of Customs and Excise, Djaka Budhi Utama, warned that any customs officials found involved in 'colluding' with thrifting traders will face severe penalties, including dismissal ²

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Challenges in Regulating New Unlabeled Imports

Maman highlighted that while regulating used clothing imports is relatively straightforward due to their illegal status, dealing with new, unlabeled imports is more complex as it doesn't violate existing regulations. He emphasized that the influx of such products indicates domestic demand, which is partly due to the lack of strict regulations ⁴

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