Key insights and market outlook
Indonesia's Minister for Micro, Small, and Medium Enterprises (MSMEs), Maman Abdurrahman, has raised concerns about the influx of Chinese imports, particularly in the fashion sector, that are threatening local businesses. The minister highlighted that even traditional Indonesian products like batik are being replaced by Chinese imports. The surge in imports, including used clothing, is attributed to be one of the primary causes of the challenges faced by local MSMEs.
Maman Abdurrahman, Indonesia's Minister for MSMEs, has expressed concern about the increasing presence of Chinese imports in the domestic market, particularly affecting traditional products such as batik and hijabs. Speaking at the Kadin Rapimnas 2025 event in Jakarta, Maman emphasized that the flood of imported goods is significantly impacting local businesses.
The minister pointed out that the fashion sector is among the most affected, with imports including not just new clothing but also used garments from China. The influx of these products is attributed to be a major factor in the challenges faced by Indonesian MSMEs, potentially undermining their viability in the market.
Maman stressed that without addressing the issue of imports, support provided to MSMEs might not be effective. The government is urged to take measures to protect the local market from being overwhelmed by foreign products, ensuring a level playing field for domestic businesses.
MSME Import Impact Discussion
Trade Policy Concerns