Indonesian Government Pushes for Local Market Protection

Urgent Call to Sterilize Domestic Market from Imported Products

Maman Abdurrahman, Minister for Micro, Small, and Medium Enterprises (UMKM), has made a strong case for shielding the local market from the influx of imported products, particularly emphasizing the challenges faced by domestic UMKM businesses. The minister pointed out that the current dominance of imported goods, especially in the fashion sector, is severely impacting local enterprises.

Fashion Sector Hit Hard by Import Surge

The minister highlighted that the fashion industry is among the hardest hit, with a dramatic increase in imported used clothing. The volume of such imports has seen a significant rise: from 7 tons in 2021 to 12 tons in both 2022 and 2023, and a substantial jump to 3,600 tons last year. As of August 2025, the figure stood at 1,800 tons. This surge is attributed to the lenient regulations surrounding imported goods, particularly from China, which do not require stringent licensing compared to local businesses.

Challenges for UMKM Despite Government Support

Maman Abdurrahman stressed that despite government efforts to support UMKM through financing access, training, and marketing strategies, the survival of these businesses remains difficult as long as the local market is flooded with imported products. He emphasized that regulatory measures are essential to create a level playing field for domestic businesses. The minister's statement underscores the need for policy interventions to protect and promote local industries in the face of increasing global competition.