Indonesia's UMKM Minister Rejects Special Import Quota for Thrifting Businesses

Concerns Over Weak Supervision and Uncontrolled Growth

Maman Abdurrahman, Indonesia's Minister of Micro, Small, and Medium Enterprises (UMKM), has firmly rejected the proposal from thrifting businesses to establish a special import quota for used clothing. The rejection stems from concerns about the weak supervision of imported used clothing and its uncontrolled growth in the market. According to Maman, historical data shows that imported used clothing has demonstrated an increasing trend that remains unchecked.

Ministry of Finance's Role and Challenges

The minister clarified that decisions regarding import quotas fall under the jurisdiction of the Ministry of Finance. However, he expressed doubts about the feasibility of implementing such a quota, citing existing challenges in monitoring and controlling imported used clothing. This stance underscores the complexities involved in managing the thrifting industry, which has become a contentious issue due to its impact on local businesses and the economy.

Implications for Local Businesses and Economy

The thrifting industry, while providing affordable clothing options for consumers, has raised concerns among local garment businesses and stakeholders. The rejection of a special import quota may be seen as a protective measure for domestic industries, although it also highlights the need for a more comprehensive regulatory framework to manage the used clothing trade effectively.